1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), the world’s leading florist and gift shop, today reported revenues from continuing operations of $179.6 million for its fiscal 2014 third quarter, ended March 30, 2014, compared with revenues from continuing operations of $191.6 million in the prior year period. The Company said the 6.3 percent decline was primarily driven by the shift of the Easter holiday into its fiscal fourth quarter, compared with the prior year when the holiday fell in the Company’s fiscal third quarter, as well as the impact of severe winter weather beginning in January and culminating with the winter storm that effected much of the country at the key Valentine holiday.
Gross profit margin for the third quarter was 41.0 percent, compared with 42.0 percent in the prior year period, reflecting both product mix and higher customer credits associated with the severe weather during the Valentine holiday. Operating expenses as a percent of revenue were 42.5 percent compared with 39.5 percent in the prior year period, reflecting the lower revenues during the quarter as well as increased marketing spending during the Valentine holiday period.
As a result of the aforementioned factors, EBITDA, excluding stock-based compensation, was $3.3 million, compared with $10.7 million in the prior year period. Net loss from continuing operations attributable to 1-800-FLOWERS.COM, Inc. was $1.4 million, or ($0.02) per share, compared with income of $3.1 million, or $0.05 per diluted share in the prior year period.
Jim McCann, CEO of 1-800-FLOWERS.COM, said, “The results of our fiscal third quarter reflect the shift of the Easter holiday into our fourth quarter this year, compared with last year when the holiday was in our fiscal third quarter, as well as the impact of the severe winter weather experienced across much of the country beginning in January and culminating in the storm that hit on February 13 th, thereby disrupting the key Valentine holiday. Regarding the Easter shift, we anticipate capturing all of the top and bottom-line benefits associated with the holiday across all three of our business segments during our current fiscal fourth quarter.”McCann said that the Company was proud of its efforts to help customers deliver smiles during the Valentine holiday, despite the challenging weather. “Our proactive planning for severe weather around the Valentine holiday, which we dubbed ‘Operation Love Storm,’ enabled us to utilize our unique distribution platform, particularly our BloomNet network of professional florists, to deliver millions of smiles for our customers throughout the country, including regions hit hardest by the snow and ice storms.
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