1-800-Flowers Q4 net income soars

Carle Place, N.Y. — 1-800-Flowers.com net income jumped to $3.1 million in the fourth quarter of fiscal 2014 compared to $538,000 in the previous year period. Continued focus on leveraging its operating platform helped boost net income.



Total revenue increased 8.3% to $187.4 million, from $173 million. The increase primarily reflects the shift of the Easter holiday into the company’s fiscal fourth quarter, compared with the prior year when the holiday fell in the company’s fiscal third quarter, as well as continued solid growth in the company’s BloomNet wire service business and its gourmet food and gift baskets ecommerce channels. During the quarter, 1-800-Flowers attracted approximately 675,000 new e-commerce customers.



For the full fiscal year, the impact of severe winter weather helped reduce net income about 1% to $14.6 million from $15.7 million. Revenues grew 3% to $756.3 million from $735.5 million.



“During fiscal 2014 we continued to focus on managing those aspects of our business that we can control and where we can effect positive improvements,” said Jim McCann, CEO. “We grew revenues across all three of our business segments for both the quarter and the full year despite the continued uneven consumer economy.”



For fiscal 2015, 1-800-Flowers said it expects to achieve revenue growth across all three of its business segments with consolidated revenue growth for the year anticipated to be in the mid-single-digit range. The company expects to grow EBITDA and earnings per share at rates in excess of expected revenue growth, reflecting anticipated continued improvements in gross profit margin and operating leverage.



In addition, 1-800-Flowers expects to launch a new, consolidated customer database and multi-brand website in fiscal 2015, and complete its acquisition of Harry and David Holdings Inc. in October 2014.