1-800-Flowers.com reported revenues of $230 million in its second quarter ended Dec. 26, 2004, an increase of 7.9% compared with revenue of $213.2 million in the prior year period.
Online revenues increased 18.5% to $107.7 million compared with $90.9 million in the second quarter of 2004. Telephone generated revenues were $109.6 million, down 3.4% compared with $113.4 million reported in the prior year period. Retail and fulfillment revenues increased 42.9% to $12.8 million compared with $8.9 million in the prior year period, primarily reflecting increased sales of products and services to the company’s Bloomnet network of florists and fulfillment services revenues associated with the Wine Tasting Network business acquired during the quarter.
Sales of the company’s home decor gift items increased 1.8% for the quarter, aided by an increase of 11.0% in December which reversed the negative sales trend experienced in this category during fiscal 2004 and into early fiscal 2005. Floral gift sales for the quarter increased 6% and represented 33.7% of total revenues, essentially unchanged from the prior year.
This year, the company plans to increase investments in search, affiliate marketing and broadcast advertising, as well as its Bloomnet business-to-business operations.
“We believe that, over the next several years, we can add significantly to our revenue and profitability in this area through sales of an expanding range of products and services to our floral network members,” said Jim McCann, CEO of 1-800-Flowers, in a statement.
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