1-800-Flowers.com Inc. on Thursday reported that its fourth quarter revenue grew, driven primarily by its floral business, and its net loss widened in the period.
The Carle Place-based online florist and gift company’s net loss in the quarter ending on July 3 was $11.1 million, compared with a net loss of $10.7 million in the same period a year earlier. Its adjusted net loss was $9 million, versus a net loss of $8.7 million a year earlier.
For the fiscal year, the company’s net income rose nearly 82 percent to $36.9 million. Adjusted net income increased 25.7 percent to $28.5 million.
Adjustments include costs associated with a litigation settlement, the integration of Oregon-based gift-basket retailer Harry & David, which the company acquired for $142.5 million in 2014, and a one-time insurance settlement gain related to the fire on Thanksgiving Day 2014 at its Fannie May warehouse and distribution facility in Ohio.
Revenue for the quarter increased 2.7 percent from a year earlier to $234.4 million, reflecting a strong Mother’s Day for the floral business. The shift of the Easter holiday from the usual fourth quarter into the third quarter affected the company’s food business results, company executives said during an earnings conference call Thursday.
For the full year, revenue grew 4.6 percent to $1.17 billion, compared with $1.12 billion in the prior year. The gain primarily reflected the timing of the Harry & David acquisition in fiscal 2015. The full year results were affected by the Sunday placement of Valentine’s Day, a lower store count, and higher labor costs due to an increased seasonal workforce and higher minimum wages, executives said.
“Fiscal 2016 was a very good year for our company on a number of fronts,” 1-800-Flowers chief executive Chris McCann said in a statement. “We achieved solid revenue growth and drove increases in margins and earnings, despite some significant headwinds.”
During the fourth quarter, 1-800-Flowers also made a $1.5 settlement payment to Wallingford, Connecticut-based Edible Arrangements over a lawsuit involving 1-800-Flowers’ brand FruitBouquets.com.
In November 2014, Edible Arrangements sued 1-800-Flowers seeking more than $97 million in damages, alleging 1-800-Flowers mimicked its trademarked bouquet-themed products and used keyword advertising to intentionally lure Edible Arrangements’ customers. 1-800-Flowers countersued in March 2015 alleging “anticompetitive activities” by Edible Arrangements.
The settlement was a “very good result for us that will now allow us to focus on growing our Fruitbouquets.com business again,” Joseph D. Pititto, senior vice president of investor relations for 1-800-Flowers, said in an email.
For Fiscal 2017, 1-800-Flowers forecast its revenue would increase about 4 percent to 5 percent from fiscal 2016.
Shares of 1-800-Flowers dipped 28 cents, or almost 3 percent, to close at $9.33 on the Nasdaq Stock Market Thursday. Shares of 1-800-Flowers are up about 28 percent this year.