1-800-FLOWERS.COM(US:FLWS)2019-01-31 19:36Financial Data and Key Metrics Changes - Total revenues grew nearly 9%, reflecting strong holiday and everyday gifting demand [7][13] - Adjusted EBITDA increased by 9.1% to $103.1 million compared to $94.5 million in the prior year [18] - Net income for the quarter was $68.6 million, with EPS at $1.04 per diluted share, compared to $70.7 million and $1.06 per diluted share in the prior year [19][20] - Gross profit margin was 44.6%, a slight decrease of 10 basis points from 44.7% in the prior year [16] Business Segment Data and Key Metrics Changes - Gourmet Food & Gift Baskets segment revenues increased by 8.4% to $440 million, driven primarily by Harry & David [21][22] - Consumer Floral segment revenues rose by 8% to $108.1 million, with a profit margin of 38.5%, down from 38.8% in the prior year [23] - BloomNet segment revenues increased by 15% to $23.4 million, with a profit margin of 52.6%, down from 57.4% in the prior year [24] Market Data and Key Metrics Changes - Companywide new customer growth was nearly 12%, with strong revenue growth from existing customers [9][10] - The company maintained a strong market leadership position in floral gifting, with double-digit gains in new customers [10][11] Company Strategy and Development Direction - The company is focused on digital marketing investments to drive growth in Harry & David and 1-800-Flowers brands [31] - Plans to continue expanding the Passport loyalty program and cross-brand marketing initiatives [32] - The company is exploring acquisition opportunities to enhance scale while maintaining a disciplined approach [37] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth across all business segments, supported by strong customer demand [30] - The company raised its guidance for revenue growth from 5%-7% to 7%-8% for the fiscal year [28] - Management noted the importance of leveraging digital marketing to enhance customer experience and drive sales [33] Other Important Information - The company plans to host an Investor Day in New York City on March 22nd [7] - The effective tax rate for the quarter was 25.4%, down from 29.7% in the prior year [20] Q&A Session Summary Question: How is the company viewing acquisitions given its current scale? - Management indicated a strong position for potential acquisitions, looking for opportunities to enhance scale while remaining disciplined [37] Question: What is the status of affiliated floral shops? - The number of affiliated floral shops remained steady, with no dramatic changes quarter-to-quarter [42] Question: Are new customers joining the Passport program? - There has been double-digit growth in Passport members, with a steady increase in sales from these members [47] Question: How does the company view everyday gifting versus holiday gifting? - Management noted strong growth in everyday gifting, particularly in food brands, and emphasized the importance of cross-brand marketing [49][51] Question: What are the expectations for Valentine's Day marketing? - Management anticipates an aggressive promotional environment for Valentine's Day, focusing on brand strength and customer experience [67]