1-800-FLOWERS.COM(US:FLWS)2019-04-30 20:40Financial Data and Key Metrics Changes - Total net revenues increased by 4.1% to $248.4 million compared to $238.5 million in the prior year period [14] - Gross margin improved by 10 basis points to 39.3% from 39.2% in the prior year [14] - Adjusted EBITDA loss was $4.4 million, compared to a loss of $3.6 million in the prior year [15] - Net loss for the quarter was $8.2 million or $0.13 per share, essentially unchanged from a net loss of $8.5 million or $0.13 per share in the prior year [16] Business Line Data and Key Metrics Changes - Consumer Floral revenues increased by 6.7% to $144.8 million, driven by strong growth during Valentine's Day and everyday gifting occasions [18] - BloomNet revenues rose by 15.1% to $28.2 million, primarily due to strong order volume growth [19] - Gourmet Foods and Gift Baskets segment revenues decreased by 3.8% to $75.4 million, impacted by the shift of the Easter holiday [16][10] Market Data and Key Metrics Changes - The company experienced strong growth in everyday gifting occasions across its brands, including Harry & David and 1-800-Baskets [24] - The shift of the Easter holiday into the fourth quarter had a significant impact on the Gourmet Foods and Gift Baskets segment [10] Company Strategy and Development Direction - The company is focused on enhancing customer experience through technology investments, including mobile platforms and AI-driven customer service tools [11] - The strategy includes expanding market share in the floral business and leveraging digital marketing to drive customer acquisition [8][24] - The company is also exploring M&A opportunities that align with its ecosystem and customer service focus [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid top and bottom line performance in the current fiscal fourth quarter, driven by strong revenue and customer file growth [12][25] - The company updated its fiscal 2019 guidance, expecting consolidated revenue growth at the high end of 7% to 8% and EPS in the range of $0.49 to $0.50 [21] Other Important Information - The company has a cash and investment position of $206.4 million and total net cash of $110.6 million at the end of the quarter [20] - Corporate expenses increased to $25.2 million, primarily due to higher performance-based compensation [19] Q&A Session Summary Question: Where is the revenue and profitability guidance coming from? - Management indicated that growth is coming from both the floral and Gourmet Food segments, with a balance between the two [28] Question: Is the company testing different price points for the passport program? - Management confirmed ongoing experimentation with price points for the passport program to optimize customer acquisition [30] Question: What is the outlook for the BloomNet business? - Management expects continued strong growth in BloomNet, driven by increased order volumes and enhanced digital marketing services [68] Question: What are the trends in the number of florist members? - The number of florist members has remained stable, focusing on quality and order fulfillment [51] Question: What is the company's approach to capital allocation and M&A? - The company is focused on organic growth investments while remaining open to M&A opportunities that can enhance its ecosystem [46][56]