1-800-FLOWERS drops 21% in total revenues

Carle Place, N.Y. 1-800-FLOWERS.com reported Thursday revenues of $173 million for its fiscal third quarter ended March 29, compared with revenues of $219.6 million reported in the prior-year period.

The revenue decline of 21.2% was attributed primarily to the continued weakness in the retail economy and, to a lesser extent, the shift of the Easter holiday into the company’s fiscal fourth quarter and lower Valentine’s Day sales related to the holiday falling on a Saturday this year.

During the quarter, the company said it reduced its operating expenses by approximately $10 million, excluding depreciation and amortization, goodwill and intangibles impairment and one-time severance costs, compared with the prior-year period.

Net loss for the quarter was $65.8 million.

Among other initiatives, the company implemented a labor-force reduction, began the downsizing of its Home and Children’s Gifts division and further transitioned its customer-service platform to a home-agent model. “As a result, we are confident that our lower operating cost structure will enable us to enhance our profitability in fiscal 2010 and beyond,” said company CEO Jim McCann.