FLWS - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the 1-800-Flowers.com, Inc. Fiscal Year '19 Q4 and Full Year Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Joe Pititto, Senior Vice President of Investor Relations. Please go ahead.

Joe Pititto

Thank you, James. you results joining fourth for full thank discuss today quarter and year. financial X-XXX-Flowers.com's our morning all us for to and Good fiscal XXXX

will our not of release the website accessed Relations the who at those Investor be issued have be the of questions. will brief For Bill formal copy McCann, then we this you our Presenting and -- remarks can of your to will section press at morning, formal call open begin today, Shea, call with Chris XXXXflowersinc.com. we CEO; release earlier received today the and our CFO. On

Litigation begin, I These statements Act risks we be or certain today materially of and everyone that involve may the cause expressed could those uncertainties differ statements implied Securities that statements. forward-looking to within Before in of actual applicable Reform to will from meaning results make need XXXX. we the that remind Private the

refer and report on For a our XX-Q. annual including company's detailed and please well the as this SEC description press risks filings, as Form of uncertainties, issued morning release reports to Form on quarterly these XX-K our

release with this this Definitions can not certain that discuss In prepared in issued we the Accounting found of be the Accepted supplemental measures press in morning. of financial morning, addition, these company's will non-GAAP measures accordance Generally Principles. were financial section Definition

earlier SEC most except tables company otherwise financial to directly by Also call, where of accompanying call, GAAP today's the The any as intent press may applicable in in of reconciliations the company. morning's its made recordings filings statements forward-looking the release. any in expressly of the press or comparable issued release to or non-GAAP any of can today's measures be stated this be today update certain measures any disclaims financial obligation found the

McCann. the I'll Chris now to over turn call

Christopher McCann

Thank you.

our plan with ended by XXXX for begin to Let more was saying We year increasing good revenue company. very revenues to $X.XX to growth, lead with our X% me the brands invest we total the the billion. accelerate year goals, exceeded fiscal than behind that a and

segment, momentum Our digital beginning on growth saw for we XXXX, in invested Gourmet gifting. build Harry Gift in the fiscal and David & programs we strong to everyday Food marketing Basket in particularly

result, the business David a As Harry e-commerce more grew X% & than for year.

our brand to advantage of Consumer behind growth. X-XXX-Flowers conditions In market accelerate segment, we Floral our invested revenue take

market As a X-XXX-Flowers leading X%, result, further our revenues grew extending position.

professional We expand designed to in services volume to also products their businesses order profitably. more and to BloomNet florist capture help invest continue offering grow of and our

BloomNet result, As for XX% a in grew significant share. gaining the its revenues million milestone the market nearly passing year, $XXX

programs innovation the merchandising for mobile-first results the technologies including marketing strategy, businesses one customer all number execution help our in new such original our in continued and digital focus and emphasize of development. our innovative product PWA, Our experience. reflect and that And product, our chatbots enhance truly voice adoption recognition our year across programs, in our that as the

year, the along strong this our we files. during customer growth the revenue addition to focus drive helps investments In made growth, significant with in

growth and David the up the reflecting was X-XXX-Flowers both across For new customer double-digit Harry increases year, than the for & more brands. XX%, enterprise

one in also year. who customers our customers, and the from within as our drove double-digit in buy growth solid membership of which multi-brand define We than we Passport in brands program more

value and our customer multi-brand we cohorts, both customer in past frequency, files. have performing metrics the highest retention, represent passport lifetime purchase calls, customers our in noted members As with and best

we the all gaining Importantly, these throughout saw growth customer momentum continuing year. and trends fiscal

fiscal XXXX. into momentum this carry to expect We

of to our I'd 'XX. few key a strategic in for additional of over Before our I initiatives results, details turn fiscal highlight financial like Bill call the to

conversational in year, platforms, including the during leading leading Google all few position are now the where companies of commerce, that Amazon. Apple, innovations, technology of Facebook, on applications of terms five has expanded category running we Samsung, In the one we and our

site We continue mobile to roll out the increasing platforms, speeds significantly and experience. customer enhancing and across technology PWA our desktop

integration innovations feature available of interactive and our notify that launch gifting gives SmartGift, recipient and in in our technology virtual is reality with the gift any customers via our average experience. human And involving highly delivery telephonic improve mobile a way. themselves, personalized e-mail feature to gifting platform recipient their preference, message, the expanded our that their them to smart speed We total messaging We to messaging the launched an experiential test to on a of we intelligence app. text, already continue increase gift understanding to express customer or further help customers the iOS metrics. allows option then And assistant, artificial answer, the an designed high new integrating satisfaction with augmented modifying

price In merchandising, entry original we continue and developing level luxury points. both focus to on gifts truly at

-- customer Pops the the expansion Dazzling line Unicorn include Unicorn based of Some the the Magical including and Bouquet. during Unicorn Truffle included hits, Unicorn our of Food Cake favorite year arrangement, on Enchanting the success of floral

Texas big & flavor continued profiles have of Harry that embraced Our Cheryl's Harry X-XXX-Flowers flavors, & Factory's winning & line, Popcorn entertaining. and with chip millennials, David And succulents and gourmet Cookies the customers combo. including the award Creme chocolate collection for both wines home unique including brownie-cookie new hit Toast were gifting Brookie, expansion and David a a

Shari's gifts that Smile also of celebratory one and the proud focused is collections. program past introduced seeing of back acquisition And developmental we this our to employment are exciting which Berries. ecosystem that are Farms our disabilities. we creating further meaningful opportunities wide give for individuals week, founded with with Support on growth. just enterprise expanded our initiatives, where A we philanthropic We have

Berries, releases all-star we in brands. family and awareness As gourmet a our an other the Shari's as a excellent strong in our fit dipped see we noted of provider of treats. brand as acquisition, press leading regarding berries And it

to all a moment to culture time, really of a a onto out work fully I'd deal organization speaks impressive Shari's the Berries but execution. on multi-branded across teams our so focus this our to not transition teamwork and only accomplishment our who us to shout help to truly like platform, in take hard that offer of to our record close

call Bill Now turn the specifics. for I'd over more to to like

William Shea

Thank you.

Chris said noted, to behind As revenue very brands last X.X%. X% of increased to X%. exceeded our guidance guidance fiscal range as increased XXXX our our invest we during guidance and the And of a revenue were total saw company. We to a the openly year rate we momentum with building August, we year, twice going our our for to growth accelerate growth growth our was good provided we

the effective also up for free be year. exceeded We making, the in We reflecting the EPS This guidance bonus expense. revenue flow. essentially with bottom solid investments year-over-year a line guidance for and cash provided reflects were business well with growth EBITDA, combined results platform as we leveraging as this the to in growth our catch flat, strong

begin expect in we growth. to accelerate we XXXX, our line momentum the revenue carry we have over As fiscal and our growth bottom

year Breaking down results. and fourth the quarter full

to benefit shift. consolidated of our including solid fourth For three across revenues of segments grew the quarter, reflecting total business and XX.X% all $XXX.X Easter million, the the growth holiday

revenues our which shift, and of increased half fourth the the of the eliminating quarters, third X.X%. impact combines year, For second total the Easter

revenues $X.XX already the we year, noted, also consolidated full increased X.X% to billion. total For as

us quarter period. the impacts hourly compared was seasonal the XX.X% XX.X% which for Gross prior particularly labor, the was first of for fiscal XX.X% margin XX.X%, higher year, fourth with margin in primarily half Gross labor, in the year with year. the compared prior in reflecting the

as a expenses in XX.X%, of fourth compared For year percent revenues was operating the the with prior quarter, XX.X% total period.

was accomplishment to the we revenue in absorbing considering year, XX.X% was expenses nice the accelerate with For This year. and a XX.X% growth the the catch year-over-year operating investments expense. in bonus the were up compared prior

quarter than with more in $XX.X reflecting growth fourth $X.X year, Adjusted loss revenue full the This $XX.X revenue which EBITDA accelerate the with offset prior reflected prior the and bonus in marketing million the million, was year-over-year compared a Adjusted the shift. the benefit million, million investments loss up, of year of compared was to period. $X.X for EBITDA year catch growth. the for the the strong Easter primarily

$X.XX per per prior million loss was of comparable year diluted the was prior share, Net share. $X.XX net loss $X.XX basis, $X.X was $X.X per in $XX.X for share million or in diluted share, full $X.XX $X.X On the year per period net compared for share loss the million a million $XX.X or year. the per Net with or or for million prior the a $X.XX compared with quarter year or period. income

per per a diluted associated Cuts income diluted gain, XXXX the $XX.X comparable income $X.XX net a share with As $X.XX the included and for $XX.X Act. with share. Tax Therefore, adjusted cash Jobs on in strong flow very gain the fiscal of was in income for a was one-time net the a Free million. fiscal EPS compared million or $XX.X prior year or reminder, basis million XXXX net tax year, tax

reflects Gift day of year category This with our to the holiday segment, increased terms with of Gourmet $XX.X In fourth strong prior results, in combined primarily in Basket the every revenues XX.X% and $XX.X period. million Food compared Easter the gifting. shift quarter million,

the year, increased $XXX.X million million, compared the X.X% prior with segment to revenues in For in this $XXX.X full year.

in Contribution XXX the improved the million, improved for to efficient increased the margin XX%, year year. for Contribution the programs. XX compared $XX.X period, $X.X shift. prior with year. combination period margin strategic loss profit quarter to primarily Easter in from prior Gross with the with profit benefiting in the compared XX.X%, the basis promotional of margin the prior with as for $X.X points XX.X% million year of XX.X% million Gross increased year pricing basis the the prior XX.X% year compared XX% margin to loss million, to in $XX.X quarter reflecting compared points well as initiatives fourth for

compared quarter margin million, year day XX%, fourth of the Mother's Easter the Contribution On gifting million, was period. performance, for shift. with with was compared the million $XX for Consumer $XXX.X prior the compared year strong Gross in $XXX revenues benefit every margin profit prior combined prior a reflecting quarter and quarter in XX.X% period, XX.X% with period. million in a to with the $XX.X the Day year Floral, grew the

million $XXX.X $XXX.X the with in to compared the For million, revenues increased year. prior year, X.X%

reflecting was revenue Contribution the Profit up. margin we compared the prior accelerated prior XX.X% period, in catch growth, $XX.X period year. in drive million, year as well to made million margin as the compared with investments XX.X%, with the year was for $XX.X year bonus marketing the in the the for

in category growth. contribution as fiscal and in fiscal made we in investments continue XXXX, expect the strong this We to leverage margin revenue XXXX drive increase we to

with compared million, our million prior In $XX.X $XX.X quarter fourth X.X% BloomNet revenues increased period. in business, the to year

For mix, with compared margin the with with the $X.X prior to lower for and in $XX.X year year year. the revenues compared the quarter $XX.X year XX.X% the for with to in for $XX.X the and with revenue XX.X%, increased margin Contribution period, to to the X.X% prior was in XX.X% quarter the million the the million, $XXX.X margin -- prior the The product million as in increased in compared accelerate investments year well million, profit increased year period. X.X% quarter in Gross prior margin million, growth. contribution year, as million margin full reflect year. XX.X% compared Gross compared the profit full prior XX.X%, gross gross margin for year. was $X.X

We expect margin fiscal bottom growth. BloomNet high-single line grow XXXX at contribution in digit its continued to with strong revenues a pace

finance, terms services includes shared organization. the management These which a functions platform, operated and other providing Corporate under Expense, legal centralized to enterprise category are services, among entire margin contribution executive. results, with In associated company's costs HR, support services of IT, platform, exclude

$XX.X $XX.X corporate including period. with as fiscal in year prior million was the compensation For the fourth stock-based expense, adjusted quarter, compared million,

health and $XX.X For corporate including stock-based year the bonus expense, million, year. reflects and The cost the in in care $XX.X expense compared quarter year catch the up, in IT. full compensation, as corporate was stock-based investments increases, for increase adjusted the higher million compensation with the prior

balance of end our the was to At investment and sheet. year, our cash position $XXX.X turning million. Now the

we and capital term Our outstanding facility. $XX zero our within under net working balance of revolving financing borrowings credit million debt deferred costs was line our had

fiscal our at fact $XX.X of season our reduces our off-peak facility of Inventory the more net noting of our some cash the quarter during that was the the and going core cold terms, somewhat our term interest rates. pool As position the associates rate XXXX, $XX strategy bank five year the rising tight using end pre-build expanded our million. million, manufacturing for credit of labor fourth is we to holiday impact reflects years a entered storage labor and to capacity season forward. inventory that mitigate Also, extends new favorable provides and during worth a result,

indicated programs conditions to to and as press business continue that across release, growth invest our take the merchandising marketing we guidance, to seeing segments. and our all of into Regarding in continue market to plan strategic of are revenue we three advantage momentum

we to addition, expect our operating X% approximately revenue including and to brand; on XXXX contributions million. EBITDA combined organic growth X%, with of and anticipated consolidated the leverage adjusted cash In as $XX the bottom-line to flow accelerate these the of XX%; total X% of are factors, in of X% Based growth acquisition year-over-year X% growth revenue our guidance the growth platform. Shari's to from as EPS free our Berries we follows: of fiscal range approximately

to approximately continue fiscal XXXX. of EBITDA target million for $XXX We

With call that, I'll back to turn Chris. the

Christopher McCann

Bill. you, Thank

So had revenue fiscal great goal. we exceeded growth to year wrap and in accelerate our significantly We to year up, a ended XX. our plan a with we the

all goals both bottom both. revenue David grow cash also EBITDA and we EPS free our in priorities in behind invested our multi and of in flow plan. line lead long brands, strong and We key for term double-digit files drove deepening program our customers growth. that , ahead with achieved strong & Flowers to across and number We customers. Invested existing significantly We strategic our Harry customers the while provide base of with exceeded X-XXX programs our concurrently customer relationships growth and and enterprise branded the a growth new near grew Passport

invest innovative new experiment technologies. to continue and We with

for On yielded our have the on our merchandising needs. original their multiple product hits embraced gifting front, focus that designs customers truly

gifting line fiscal in year. XXXX, the the to will our investments continue to the keep and to initiatives plan We on we take us position these results making growth to accelerate are our As bottom revenue enter continue we help strong & foot our for pedal conditions the share every our to market other grow and Flowers keep and Food for BloomNet strong and Gift of our and day advantage momentum our Basket market further for Gourmet brand, market going to Harry leadership David X-XXX continue brands. expand in

human to our and products further by celebratory customers many that excited opportunities with more Looking our ahead, expression, services we we celebration. the are innovative see and connection ecosystem expand provide and the inspire

this I across their Q&A, constantly associates we the and provide to their for deliver experience customers enhancing our helping to call them, Before, thank and opportunity smiles. the passion in turn our on over James unwavering to their dedication to of begin company our for I'd hard like for and work the focus to innovating take customers all

repeat please James, will you section, please? for the polling the instructions Q&A

Operator

Thank you, McCann. Mr.

first the take today begin now our Benchmark will Company. question we'll Instructions] Dan We question-and-answer And from Kurnos with [Operator session.

Daniel Kurnos

morning. Good thanks. Great,

just get on housekeeping Chris, the your in way. multi-brand. prepared getting just you talked Just remarks small a it to a -- let's about Sherry's, of with start out

guys to sort margins Just profitability thinking ability grow about the XX asset, return next you impact and to how just it the over months? of on that the are

Christopher McCann

leader us Sure, This We're the will further gourmet help as excited ability of see the fit acquire see brands. Shari's side our authority Dan. acquisition, really you. really a lineup very business. our all-star have Thank and our Berries this you growing as to of in food brand clearly, us, and position an to excellent we in expand what

the added capabilities already to not distribution stack but platform, technology several our our of to So, of we've platform. the just

When on fully new a our for part, And we afternoon, most last was were we and the closed orders Wednesday great really platform. taking that integration. integrated. it So

is plan Our line to improving the focus forward of going bottom on Berries. really performance Shari's

saw to So, partnerships being of were that lot we're we the with growth. eliminate unprofitable brand, unprofitable focused the marketing some going a done that of just marketing that on

moving more the improving into on brand. product to of the back a I going think focus quality, premium we're brand

less you food brand gourmet we other than You'll promotional us the position in with that seen from our brands in more brand line that discounting past that today. see is as see

as to we business at the customer the start growing look business, integrated, the So, look at get file.

our that in You'll etc. we similar done opportunities, growth opportunities utilization for see other business our grow it but each brands to where look profitable leverage really manage what Passport and -- multi-brand us to brand, then also with platform, growth we've the from of introduction, our ecosystem, program, leverage customer the

the is reposition we really, think strategy forward. that's I this as brand So, that going

Daniel Kurnos

Got it, helpful. that's

anymore, So, drag the the EBITDA, Shari's you the forward you Shari's is in what's especially of room kind hurting -- not today. right, is which if just a elephant guide, really let's I then address read on if

millions you no guys have investments taken have guys your So, that. and of last Obviously, in doubt dollars made significant years. tech several marketing in share of few you hundred accelerated There's the about revenue.

of, some and kind FTD, although you guys. there got be rational reasonable You've against more obviously, Nexus that player a pieces will maybe concerns in are now,

how long the balance competitive a do that a between basis to you your we we or points used year? do for expectations relation expansion points growth? sort situation of improving just view and especially leverage sort guys to short generate margin to of, the about, basis So of, term, how backdrop? return Do long XX the the we to a view term, with So over, XX

Christopher McCann

Yes.

look So Again, provides growth speak allowing again guidance the well. this and last again, Bill the our we've to we've as to we I We building celebratory guidance what to range. on that us It good little bit at continue the well. operating Berries our do believe can is several upped accelerate very the now focus example upped competitive that a X% on this working Shari's And year, on year we're that. It's year. now in landscape, for we focus strategy think guidance the we we is times us to X% coming leverage of more. adding a and ecosystem,

we're the we've So but a momentum really in line have, only continue bottom results accelerate that good to we been position growth we think, not to the producing.

William Shea

last bear. Dan. as impact We X well X% Remember, that year. tight cost Yes, this the of year's impact labor guidance -- we a as It both the market of provided. to the our September guidance as contemplated think XX% absorbs strong impact December very line of our we that is labor of tariff the bottom we it and believe XX tariff, includes seasonal at tariffs and the carryover the with

the With X% to then with and to Shari's point didn't with growth bottom the time. with up guidance guidance we overall that this specifically provided, really X% Shari's, X% to we -- X% at our guidance organically, in regard line and

we're with Chris want segment Basket Gift long this term -- brand term, long the described, to and brand. line As where growth repositioning We & line operates. top our Food Gourmet where profitable position in we growth for both

costs year. We costs to the Shari's and have absorb associated this the deal startup with

upped done over acquisition. Shari's guidance we line we without even haven't would the the what probably bottom So have

the are growth showing we that leverage some organic we So on provided.

Christopher McCann

And now not last that's at Wednesday. it -- the to the adding more this since business and your had point to of Shari anything point, guidance on really

what it's we know So on based now.

see forward, move more after going we assured can we're rest we it. opportunity, go if to you As

Daniel Kurnos

able of sort And leverage rate. elevated in longer just term to be being on you and see to clear trajectory, business an so the sustain still guys, a growth

William Shea

Yes.

Christopher McCann

Yes.

Daniel Kurnos

guys. right, enough. fair All Thanks,

Operator

with Anthony and from Company. Sidoti come Lebiedzinski will question next Our

Anthony Lebiedzinski

Good thank for you and the taking morning, question.

I be you wondering, also follow-up wondering Berries, a just of just customers the not? the just on business thanks So comment many GFGB or incremental to to seasonality expect. you the the to it you on how And guys of the pick in regards Shari's up, to Is going similar can that business guys was did Shari's rest if Berries. acquisition?

Christopher McCann

it's exactly gourmet and is managed. more business, built like So been the business not like, seasonality the the gifting it is to that's floral it's way been than food

season. spikes and get Day Valentine's around more your around holiday you holiday than Mother's You day do

unprofitable Again, we seasonality is And at look geared I the Gourmet I towards mentioned, we food. So the that seasonality as than business, curve holidays, will done demand Floral chase we as as determine well. drive business that more think some in good like saw of really to that. was marketing sake. growth the We our just won't trying for peak at demand

past, the in You've see from in be you seen the that we disciplined growth us very us that get.

growth see holiday doing after won't us going crazy same So of that type you rates.

looking at couple million of a as of number the far come customers it's list. As with that customers,

the customers? were that we How long profiles do profitable those mentioned. see some chasing to Groupon are customer the partnerships to that that go need customers. to Now, I term many customers, of are many how speaks really core. those on lot customers? of of need discount How much customers, that really the yet through So we and understand So those that are customers of is not etc. repeat basis, of file just a to that

signs we is early base, customer be customers, for we encouraged customers to it's by, to One are of There's a us there's that some tell multi-brand of much similar overlap the overlap David. Harry not too enough these that that can still wide enterprise is lot & our us acquired to so. opportunity but do with there to migrated while when

file. encouraged we're at from pretty looking their perspective So customer that

William Shea

-- like emphasizing for business, -- that this this we not are Yes. important businesses, day holidays gifting every but within are And with they clearly the every are brand. not day our all

Anthony Lebiedzinski

the other issues, also tariff And tariff, quantify are if could tariffs to perhaps Got a costs. That's wanted there better labor on And commented impacting so Bill rising it, you get the Also, the very of the that? was to sense you just as affecting okay. helpful. cost your wondering, of well? rates as is impact I you? is impact any mentioned you

William Shea

Like business. rates on fact increased seasonal are of It rising necessary. wages nature labor because and bring market hourly tight We've a we decent a where business have and many does that the seasonal our with so dealing labor employees. on the our impact our all businesses, we of size

retain retention and the special programs included seasonal We've from get vouchers, for it's because us attract discounts, cost to to travel because labor product productivity. etc., We guidance. repeat our worker on in bonuses, improves our sweepstakes, better incremental it seasonal have lots our of workers this

Just year's announced as December year on both the X we well tariffs, tariffs, full as September and included XX, cost... and both I impact range the year's as tariffs, effective our we've of these multi-million impact as mean year-over-year last contemplated the dollar of in guidance, again, tariffs last impacts the the

Christopher McCann

And our included in guidance.

William Shea

our But they included are in guidance.

Anthony Lebiedzinski

Got it, to of or revenue look when of Thanks perhaps some for evenly okay. lastly, the anticipate spread your X% at X% to more your you others? more than segments to or that. of grow across organic guidance I main faster kind And expected segments -- or growth. Is be do your of that the one less

Christopher McCann

Yes.

I year, were first-three consistent year we half quarters reported grew first the throughout our the rate, remarkably at X.X%. our and growth with previously we the of think, we

of annual The the shift. the X.X% out in QX second X.X% back year, those because the QX, of you back Easter at if half XX.X% out, we and Easter the the and grew of both kind quarters impact rate. grew Overall, grew at in of you shift at we

direct-to-consumer Floral, about year year, we about So at on brands. the BloomNet grew perspective. was in past the we XX% this pretty throughout in Gourmet from consistent And and grew X% Food in especially it remarkably, grew X% business consumer that we

we move within three growth expecting year, of are forward all we nice our As organic business. this

William Shea

consistent digit Fairly range. mid-single up in that

Anthony Lebiedzinski

luck. of Best much. so you thank Well, okay. it, Got

Operator

from will Craig-Hallum We with Capital Fuhrman Instructions] now Group. hear Alex [Operator

Alex Fuhrman

really the the taking increase that Floral pretty, if my pretty that if looks there or more has in a segments? years. more new the very customers had fourth Gourmet specifically quarter, or much big side in the question. been is than on driving like you was business It so between side, so thanks Great, in what prior the even of Curious, food two for

Christopher McCann

Yes.

also year, one So a growth the -- new that the to focuses be year, part business to for the would Floral growth. aware, of Specific is overall But shift, QX. David our driven move some by brands. you're drive from probably drove mainly & X-XXX-Flowers think and we the customer I especially Easter across customer of And be would and to in as of during that's the brands then that Harry there. the would double-digit key been for QX, it

Alex Fuhrman

And Okay, Berries, to relaunching brand, on first couple closing then they're think the charge here that's then acquisition be the position the year as we brand follow that deal? we of related more to costs should see an a going investment of further just should course some that Shari's in as expect type the about sort to any you see to And of helpful. quarter for ups expect growth? you related just over that

William Shea

had Yes. Again, our our that we with to plan acquisition, X% Shari's guidance that. absorbed that we growth guidance and EBITDA is reason the XX% didn't of so the up beyond

Christopher McCann

And no acquisition charge.

Alex Fuhrman

helpful. Okay, that's very Thank you.

Christopher McCann

It includes deal cost and everything else.

Operator

do Fuhrman, Mr. Hey, you have anything further?

Alex Fuhrman

Nope, that's much. Thank you very it.

Operator

Michael Capital Market. NOBLE from hear Kupinski now We'll you. with Thank

Michael Kupinski

you. Thank

you Berries. million, XXXX? Shari's know contribution maintaining will a guidance EBITDA If last by Shari's question -- that that fiscal would but on you to $XXX are Berries I 'XX your I hopeful at have a Just expect

William Shea

Yes.

Christopher McCann

Yes. We would.

William Shea

Yes.

Michael Kupinski

And then -- I'm sorry.

to kind waning moderation you're there? or if that in -- not anticipate kind little you that is related little search a to types have be a forth. Floral for that of the wondering any possibly might business on those still Just I if words competition was expenses Just there going the talking bit pressures? -- again. sort of heightened or expense visibility starting there's so some I I'm a wondering, heightened whether the know you competitive of and Consumer bit of about see

Christopher McCann

point point, space a view, through your well. think to competitive is very the set of but So of through it's ad costs competitive a as the the also, still summer. continued Floral last factor a Consumer From and are holiday Michael, I into seasons, even rising

into new seen, our costs really, it's sure we've the now programs. and helps Flowers bolster that really in with We're especially to really file acquisition number Passport etc. our investments, very customer to the with marketing of bringing happy gotten multi-brand acquisition the program, what customer efficiency stayed in why from us we've we've customers, customers in in So brand. driving us people migrate make the we're on the new that And that that, more that that's

to though do are our pedal, Flowers, we're of continuing seeing effectiveness keep even on there on So customer on it. acquisition, some that continuing the foot to costs and there the because we're heightened

Michael Kupinski

spin investment And that due such. then fiscal conversational technology as to your and in into moderate in spending elevated we you. Will is XXXX? development Got commerce go the

Christopher McCann

look we're the first We an driven lot business technology requires a technology at and of spend. spend e-commerce that

the range. will our in in expect, you a competitors that commerce. last and differentiate you've one transformational conversational and technology It technology for that several remain things And would fairly like stable the spend amongst the leader really it mentioned of seen technologies I think is years. I

Michael Kupinski

And me definitely. I'm XXXX? cap you give this, expenditures but do project to you Most fiscal missed spend for in what sorry be can capital this the and I quarter if

William Shea

Yes.

year spend Mike. million, cap So last little was a over $XX

I talk summer if start spend to you want to months. you of is is prepping a It we If it give as the can quarter quarterly the -- off-line, that. breakdown the decent fourth in

a little ready first getting higher season. next spend for quarter, the fourth So quarter, holiday

the our to distribution look we've issues about. continue we automation that spend up bit little within seasonal at be address centers cap a initiatives to help to some expect of We talked as next labor year,

Michael Kupinski

That's Perfect. Thank you. have. I all

Christopher McCann

Michael. you, Thank

Operator

turn to for This CEO, like concludes McCann, closing over to I'd session. our back question-and-answer conference the remarks. Chris any

Christopher McCann

your you, questions. joining and for everyone thank thank you us Well, for

you Berries I with product And of we new urge we're just acquisition could further encourage any follow all yes, the and about if please us. please very excited If Shari's you by means, try support and business. the you you to all very Thank -- have questions, Berries much. the to up

Operator

for concluded. presentation. The conference now attending has today's Thank you

1-800-FLOWERS.COM (FLWS) 22 Aug 192019 Q4 Earnings call transcript