1-800-Flowers.com Earnings Highlights

• 1-800-Flowers.com posted a fourth quarter 2022 net loss of $22.3 million compared to a fourth quarter 2021 net income of $13.3 million.
• Operating expenses as a percentage of total revenues in the fourth quarter of fiscal year 2022 were 39.2% compared to 37.5% in the fourth quarter of fiscal year 2021.
• The company ended fiscal 2022 with $31.5 million in cash. This is down significantly from his $173.6 million at the end of fiscal year 2021. William Shay, senior vice president, financial officer and chief financial officer, told investors that this reflects the company’s strategy to build and buy inventory ahead of the new year to offset the future. said to be part. This holiday season, Global Supply his chain is in chaos.
• According to Shea, higher fuel and transportation costs associated with higher digital marketing and advertising costs have impacted profit margins.

For the fourth quarter of the fiscal year ended July 3, 2022, 1-800-Flowers.com reports:

• Total net revenues of $485.9 million. This is down 0.23% from his $487 million for the same period in 2021.
• Net loss was $22.3 million compared to net income of $13.3 million in the year-ago quarter.
• Adjusted EBITDA loss was $16.8 million, down 57.0% from $30.2 million a year ago.

1-800-Flowers.com reports for the full year ended July 3, 0222:

• Total net revenues were $2.21 billion, up 4% from $2.12 billion a year ago.
• Net income was $29.6 million, down 120.2% from $118.7 million a year ago.
• Adjusted EBITDA of $99 million. This is down 73.1% from the previous year’s $213.1 million.

Percentage changes may not match the dollar figures exactly due to rounding.

1-800-Flowers.com reported total net revenues for fiscal 2022 of $2.21 billion. That’s a 4% increase compared to last year’s $2.12 billion.

Total net revenues for the fourth quarter of 2022 were $485.9 million, compared with $487 million in the fourth quarter of 2021.

“Fiscal 2022 saw fourth-quarter revenues virtually flat and full-year revenues up 4.0% year-over-year, up more than 75% compared to pre-pandemic 2019,” said the CEO. said Chris McCann of Investors during earnings announcement.

As an ongoing challenge, he said, “Unprecedented and rapid cost increases have impacted gross margins and operating expenses, including labor, shipping, merchandise and digital marketing.”

1-800-Flowers.com has expanded its product offering through acquisitions such as Vital Choice in October 2021 and Alice Table in January 2022. That’s on top of the nearly 10 million new customers it’s won since fiscal 2019, McCann told investors.

On September 6, 1-800-Flowers.com announced plans to hire more than 8,000 seasonal and year-round employees across the United States to work in areas such as production, assembly, distribution and operational support. did.

Interactive advertising plays an important role for 1-800-Flowers.com

McCann cited rising digital marketing costs as part of the company’s spending challenges. According to chief marketing officer Jason John, 1-800-Flowers.com has learned a lot from interactive advertising. Over the past three years, the company has used ads on his Instagram, Facebook, Google Display Network, Snapchat, Pinterest and more.

These ads allow shoppers to chat with an artificial intelligence-powered bot that answers basic questions and guides shoppers to the best product based on the answers. The shopper can click the selected product and be taken to the checkout page.

Other ads, such as Instagram ads that appear when shoppers are scrolling through social media apps, allow retailers to suggest products based on how shoppers interact with the ad.

“On some platforms, interactive ads are the best performing ads,” John wrote in an emailed response to Digital Commerce 360.

1-800-Flowers.com is ranked #54 on the Top 1000. The Top 1000 is a Digital Commerce 360 ​​database of North America’s largest online retailers by web sales.

1-800-Flowers.com has been running interactive ads for about three years. These ads work across platforms such as Instagram, Facebook, Google Display Network, Snapchat and Pinterest. Ads ask shoppers basic questions and direct them to specific products to initiate checkout.

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