1-800-FLOWERS.COM(US:FLWS)2020-05-03 16:02Financial Data and Key Metrics Changes - Total consolidated revenues grew 12.2% to $278.8 million compared to $248.4 million in the prior year period [22] - Consolidated gross profit for the quarter was 38.5%, down 80 basis points from 39.3% in the prior year period, primarily reflecting product mix [24] - Net loss for the quarter was $9.7 million or a loss of $0.15 per share, compared to a net loss of $8.2 million or a loss of $0.13 per share in the prior year period [25][26] - Adjusted EBITDA loss improved by 45.5% to $2.4 million compared to $4.4 million in the prior year period [25] Business Segment Data and Key Metrics Changes - Gourmet Food and Gift Baskets segment revenue increased by 27.1%, driven by strong e-commerce demand and contributions from Shari's Berries [22][8] - Consumer Floral segment saw a revenue growth of 5.4%, with strong performance during Valentine's Day, although impacted by softer demand in late March [22][10] - BloomNet segment revenue grew by 7.9%, with solid results despite the challenges posed by the COVID-19 crisis [22][12] Market Data and Key Metrics Changes - E-commerce demand has significantly increased, particularly in the Gourmet Food brands, continuing strong through April [7][17] - The company experienced a rebound in floral business as customers adapted to new gifting occasions during the COVID-19 crisis [11][9] - The overall consumer environment remains uncertain, but e-commerce trends are expected to remain strong [18][29] Company Strategy and Development Direction - The company is focused on maintaining the health and safety of associates and customers while leveraging its operating platform to meet consumer demand [15][34] - The strategy includes investing in areas that drive future growth while maintaining financial strength and flexibility [34] - The company aims to engage customers to express sentiments that are increasingly important during challenging times [34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges posed by the COVID-19 crisis but expressed confidence in the company's ability to grow [6][33] - The company reaffirmed its guidance for fiscal 2020, expecting total consolidated revenue growth of 8% to 9% [30][29] - Management noted that strong e-commerce demand is offsetting reduced revenues from wholesale and retail channels [21][29] Other Important Information - The company plans to close 38 of 39 Harry & David retail locations, resulting in a one-time charge of $4 million to $5 million [18][60] - Cash and investment position at the end of the third quarter was $232.1 million, with total net cash of $138.5 million [28] Q&A Session Summary Question: How has the business progressed over the past 6 to 8 weeks? - Management noted that food brands performed well immediately as the crisis hit, while floral brands saw a dip but rebounded strongly in April [36][37] Question: Has the strength in Gourmet Foods been from existing customers or new customers? - The company reported strong new customer growth of 30% in Q3, which has accelerated since then, indicating a combination of both existing and new customer activity [42] Question: What is being done to maintain customer influx and competitive positioning? - Management emphasized the importance of consumer sentiment and noted that they are less promotional than in the past, focusing on marketing efficiency [46][48] Question: What is the impact of the Harry & David store closings? - The estimated annual revenue impact from the store closings is approximately $33 million to $35 million, but it is expected to result in about a $2 million EBITDA pickup [60][61] Question: How is the BloomNet wire service performing? - The company is focused on supporting local florists and reported that most shops have reopened, with the floral industry being recognized as essential [86][88]