FLWS - Earnings call transcript Q1 2020

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Operator

Good day and welcome to the 1-800-FLOWERS.COM, Inc. Fiscal 2020 First Quarter Results Conference Call. Today’s conference is being recorded. [Operator Instructions] I would now like to turn this conference over to Joe Pititto, Senior Vice President, Investor Relations. Please go ahead, sir.

Joe Pititto

Chantel. you, Thank thank discuss and XXXX for us joining quarter. Good Inc.’s you financial to X-XXX-FLOWERS.COM, fiscal results today morning all for first our

For our release can a accessed at not release who Relations earlier at be those section www.XXXXflowersinc.com. Investor our of issued the of website press received morning, this the of you corporate copy have

and formal your Our call Chris Bill call we to questions. will today then CFO. McCann, today will Shea, CEO remarks, begin open and with be Presenting brief will the

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

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

today’s the may any of to except of the or filings, otherwise any recordings update forward-looking discuss directly be In can today found accounting supplemental of the The these morning. press company’s this in obligation financial issued of tables principles. will its the in any generally not certain accordance measures we expressly SEC stated morning, company today’s were made or Reconciliations financial measures accepted to measures this accompanying by any press the as earlier call, non-GAAP intent disclaims comparable statements prepared in GAAP addition, most that with company. release the be release issued call,

over to turn now Chris McCann. will I the call

Chris McCann

everyone. morning, Good

fiscal We have had strong to XXXX. start a

quarter As I year. press momentum built that the morning��s we this our a throughout first release, last stated of for continuation represent the results in

that & and we than make in in we more continue and getting made EBITDA as investments to of key brands improvement well benefits last the this XX% are David nearly Harry from X-XXX-Flowers XX% growth as reflect business. the year and revenue year Our BloomNet of our our

revenues, Importantly, all our contribution margin we business growth solid segments. of achieved three in across

gifting and Berries our quality. marketing product to business different well. And into going In both shipments partners Food and customer the such packaging this XX%, a by channels. with acquired changes testing rework prepare new messaging contributions Shari’s of been direct-to-consumer and we’ve revenue has season, for working holiday holiday to and been development Harry meals Shari’s begun We’ve that wines improving which gifting as noting This teamwork demand Shari’s our gifting thank birthday, the for at deliver worth driven hours David everyday strong to are grew gourmet we & continued up and prepared The new the shopper nearly within Baskets, the the in acquisition. platform a to Harry It’s gifts we the and on for for had of and well that and helping occasions integration customers culture execution. as younger everyday its Berries smiles, brand, get with focus closed X-XXX-Baskets as our on mid-August. brand having testament including our entertaining season well Berries multi-brand line we increased you, of on brand, real Gourmet attracting growing is upcoming collection, mix Gift for for growth & David sympathy new from and in to and wholesale making along the and marketing our literally for fulfillment

merchandising making seeing. and able In we BloomNet during businesses, contribution programs to in leverage been revenue, investments encouraged solid and are are the to While demand margin innovative margin interest by achieve were the this the effectively and quarter. marketing gross X-XXX-Flowers we’ve is still very floral early, growth our we customer and in

and its result, leadership a extended market to market further X-XXX-Flowers position continued BloomNet grow its As share.

We expect year. continue trends the these to fiscal throughout

driven increasing of by wholesale digital growth volume. demand primarily directory strong expanded During with in sales line and our the quarter, for products, growth revenue continued BloomNet’s was order along

of strong In business, plant new self-consumption. X-XXX-Flowers shop both building on we and house favorites the plant collection our succulents. launched plants features seeing of for gifting customer that and expanded a on-trend in we are an of the The growth plants selection shop

in We favorite this are a millennial of authority fast-growing category, quickly becoming customers. the

to truly Farmhouse elevate the Rustic fall floral our and gift for younger brand. Pumpkin now collections designs continue are and helping also differentiate X-XXX-Flowers exclusive customers We attract Spice, original and trending including to season, and offerings that with the

during addition to and in as the our double-digit we customer well file quarter, in revenue membership the growth our growth growth in program solid in customers. continued strong also In multi-brand Passport as

the strong growth noted past, and for purchase bodes the period. well customer in are enter in value. we shopping holiday our these lifetime The continue we’ve us our in momentum As customers we frequency, retention as terms key our as file best-performing of

Bill metrics call few touch the for the we’ve initiatives the of over quarter, holiday I’d financial a turn to for on ahead taken season. I the to the Before of like

inside. and from with self-consumption The brand offering baked available are Factory, gourmet and of shaped moments English the items on exceptional for $X.XX shipping express On Cards to customers as positioning its to best all muffins has daily. of perfect holidays, off known for new goods to included. bakery, full envelope Wolferman’s and the savory how scratch Pop a for curated we featuring Also Bakery, new for is With occasions, reflects The launched cards repositioning a from online gifting. designed sentiments printed wish Cards from baked for the relevant specially entertaining, and super-thick a popcorn cultural merchandising Wolferman’s start brand great evolved the assortment front, our expansive who uniquely Wolferman’s sweet our with with sentiments for and Popcorn outside on line thoughts everyday their Pop witty designed

its result some seeing Wolferman’s customer As while. experienced best of repositioning, that of demand have already we is a in a the

a also meaningful collection XX% that gifts Farms, of donated season, dedicated launched As to with into net for the to we Throughout is sales to disabilities. organization sharing, holiday jobs Smile creating special we proceeds individuals head all of nonprofit be a will benefit holiday this the of have developmental season designed Farms. Smile from collection’s

X-XXX-Flowers log site enhancing customers’ enabling innovation technology sign-in on if reality user click, what we our top their to terms PWA customer launched only gifts completed single customers deployed new of their for experience significantly will recently not a capability, Magic name customers XD to the their mobile also supported products by devices. a with for by accounts mobile mobile, allowing in speeds the our even to on remember look their site, a of and our table devices. In our preview enhance our but password. in capabilities of and dimensions like experience, we or see on And the don’t on across increasing the on Link X brand, desktop We rollout products collection into augmented both they a new room them

business period, ahead, all strong Looking segments. holiday across have we key we enter our as the momentum

the metrics We to our and continue product strong pace experience. company exciting to strong, to to customer customer continually and at and offerings be our our grow designed continue files a the underway enhance new have we expand customer across initiatives

are for to period fiscal we the result, holiday a the and deliver As positioned full well strong year. for performance

turn now to will I the call Bill? Bill. over

Bill Shea

Thank you, Chris.

top and strong are line growth noted, very bottom off pleased with improved we have the quarter. in well Chris As we started line results fiscal first XXXX and our

in shipments, X in across the the well Gift basket in Adjusting quarter, the as Berries business gift digits this these, our in benefits occurred wholesale & at the the and growth second Baskets achieved strong for segment Food Gourmet While from past we driven typically quarter. Harry segments, of high timing outsized of by in as growth saw all the our single reflects for segment growth growth X-XXX-Baskets.com. which Shari’s This strong our certain David quarter. was and

revenue X% consolidated period. a XX.X% terms in Gourmet The pricing some to improved increased with million points offsetting points, initiatives Consumer gross was of Gift Now revenues, XXX prior by highlights improved higher for X.X% total This compared Baskets offset seasonal of revenues, breaking and marketing BloomNet Floral reflecting XX the of basis Gourmet increased quarter, respectively, Operating first growth primarily Food which in of million combination XX increases first, segments. with along basis period margin efficient with expenses $XXX.X and XXX to a Baskets from Food XX.X% segment. Floral the the basis tariffs. use in to profit promotional XX.X% in in our segments, and labor decline year than margin in BloomNet the the programs, in and Gross driven reflected Consumer revenues of strategic and respectively, profit points down growth points and growth, period. of the and reflecting basis strong Gift more costs XX XX.X%, total and associated segment to $XXX.X more basis helped the the points

million million As to of adjusted a our loss quarter. or $XX.X a result of these improved for EBITDA by XX.X% factors, we the $X.X

nicely $X.XX share Our per net in the million per with period or loss to for share $XX.X improved $XX.X period. million year also the $X.XX compared or prior

tariff our pre-building $XXX.X the and increase holiday $XX.X the certain strategic cash in end of expected our $XXX.X at inventory growth quarter. as was and to first increases was the year’s at early sheet, some balance inventory quarter. decision the million last compared our supports end of as with to well the for ahead Turning The investment the of inventory position buy million the inventory season. Inventory of of first million includes

strategy on and allows headwinds slower during mitigate hourly calls, to our As labor somewhat seasonal market summer our past have for workforce associated months we the to with core a this tight the use wages. noted rising us

on debt, In $XX.X borrowings revolver. have terms credit we million X with facility outstanding our our on of

are we beginning of our the we provided guidance, year. fiscal reiterating Regarding at guidance current the

issues, our also basket reduce wholesale shipments several the dollars our in guidance fiscal will certain million first total quarter, into fiscal second current wholesale timing the in in particular, which shipping quarter. of Our includes shipments

growth result, year our million. X% for consolidated and XX% adjusted from in free X% range as year organic $XX Total EPS flow growth, approximately X% with revenue contributions consisting the the to of of the guidance the fiscal to Berries, X%, cash the to Shari’s of X% remains year follows. for a of As for growth combined anticipated revenue full

to I Chris. back turn call will now the

Chris McCann

Thanks, Bill.

So a to we to strong start sum up, ‘XX. had fiscal

Our the that the beyond. built of quarter first year momentum continuation and throughout we’ve results represent a for last

making and three growth increasing of revenue are merchandising EBITDA programs in our investments benefits EPS, business segments. strong of the in by form marketing and been the and of all We we’ve seeing driven the

innovative technologies are customer experience, resulting our in invest engagement program continuing the grow customer to to growing that help and brands. We from we in membership with in across enhance enterprise, continuing along are and multiple customers customer buying in our Passport increasing file

As a bottom enhanced momentum of positioned line continue head us so I’d minute the for result, as holiday for revenue to strong team the QX. and a all these well we into we season, positioned and planning are company members take all well and to to deliver delivered to results continue growth momentum our QX results. has our the this like important into thank who that

any we to open that, would of call the With questions. for now your like

could Chantel, instructions the Q&A. for repeat you please So

Operator

first [Operator LLC. from Thank Our question come Dan will Instructions] Company The Kurnos, you. Benchmark

Dan Kurnos

to a Nexus you over stuff. Chris, guys. in like too all There a surprise. it little nice had They rumors will don’t made lot and quarter, quarter a yet nice have think I expectations gains a you took look bit have pretty of you FTD’s and not are has which much expect alter there good, was after share and morning leverage, but sounds the your CEO. after think continue the investments Good I still out your words, been of Thanks.

holiday talk and it. if just would you could seeing period? now quarter appreciate into going of So this the the competitive are to I kind in environment you

Chris McCann

extensions the Yes, achieved across and the the of Great, we’re it. you seen changes, competitive side whether haven’t wouldn’t any some recognizing change landscape floral in, that you the categories leverage. to in enhancing for we floral continue on gourmet and competitive to have talked our about. And any we food that, as showing experience, bringing new enhancing shop, investing getting we the we Daniel. table, landscape. gains that, I that look like expect of our we at to really haven’t that or be brands share as think look on-trend seen that we and plant are see the side the Thank we because what QX, stands the really we the focus for, but brand at on the product our do customer we bouquets the focus our on relentless share on gains well, building continue what

the combination that’s environment us really it’s And great if environment helping our way, share. you mind competitive is. momentum we well, competitive we floral matter file of will to especially of market been do us continued what as we So in build and a have customer it a past, continue this do on growing have in and all keep the gives no the confidence this increasing the to in category margins that along out very that,

better rational, bit spend us. irrational even think market, have So if done bodes we more in little market even well. for that And the a becomes we an

Dan Kurnos

if it. is week but Got X for X how are us you but through think expect just you Chris this you, your X planning is whatever that? how or thinking order are week you I this that’s guidance? helpful. in for know be embedded it And less X the and less years know years, holiday for be impact, there just demand logistics don’t there is If could Great. just Bill, period, by to or happens I would how That you impacted help guys then about

Chris McCann

It there. point when of how do Thanksgiving our It we some does earlier, marketing little incentives trying changes involved embedded little putting bit, have the And Yes. planning. some want we things? And orders give market before the logistics early bit, guidance. so our of differently. little to, gone out, been you some a affect season you to timing as is go to a to that on to planning initiatives, bit we’ll in in years trying going of holiday our get little case you to the back past customers bit side have that’s the order Bill, certainly move get emphasis in things a that up integrally the talk to been a our

Bill Shea

we that closer later plan more Yes, gets closely we also a small this small each to put on ship And better we of the We’ve with delivery year. their have we on FedEx, in major with in to partner. helps at deploy on to closer cost, the – save get package but delivery very consumer, helps package It work year. inventory FedEx worked place also and we of save the the our product so it fully hubs. consumer can kind number direct truckloads into better

that’s of we later quickly can happening again, So this kind react the very to demand just year.

the end, less shopping So have on we front to Dan, the X days an your has addressed point, think I that. impact both

end. We our have. on working built very we have guidance feel into address that. We we comfortable with that that have been that partners the And operationally, to

Dan Kurnos

guys. color the Thanks for Perfect. Alright.

again. back We will in get queue and congrats

Operator

Thank you.

will Michael Capital Kupinski, question from next Markets. Noble come Our

Michael Kupinski

know talk of landscape? Very changed your last were changed last and that if was that indicated for is search cost quarter you may heightened like anything that. some the have year. little in the Thank good Can to I the might competitive congratulations you just what start things that the about bit have words a particularly? wondering you on there in in there quarter and terms quarter. I

Chris McCann

no change. big Thanks, would Michael. thanks. real has much where I we would is say, see not change. to there no, been QX quarter a expect Yes, Again,

kind of set. not competitive condition, that’s referenced to necessarily terms and search then up general just You going a market our

a It’s younger the real attract our we been line, on the product us highlighted business, some with us. have food well especially us, in to moving competitive well gourmet the on David or So the plant the which And to we haven’t highlighted floral we digital for it new responding why Harry any engagement the demographic that general side marketing shed. we of what campaigns. are products whether in landscape & people we is responding why in brand, That’s we of helping bringing fantastic again, our doing offerings the is for our side gifting that be customer doing That’s in change the QX, seen gourmet great out. into. are continued see

as look the well. kind So term, as that really look at really, QX, as but we really positioned, short it, we beyond especially well we focused of as on think moving into we’re we’re really

Michael Kupinski

little Floral And talk about can you it. a volume Consumer pricing business, versus Got then maybe? the bit

Chris McCann

So I’ll cover it’s ask Bill pretty to but straightforward. that,

Bill Shea

been is hasn’t all really Yes, our There it really AOVs. much in change volume.

Floral that is you volume. in X.X% driven saw growth really Consumer So the by

Michael Kupinski

And in the year-over-year, been your about bit Got what it. in of provide you looks that that can florists a increasing? network, little number And like just you talk maybe can BloomNet, like? that if has

Chris McCann

Yes.

take that. I’ll So

we’ve As the grow membership. for time not long we’re a really said BloomNet, now, looking to

So range, in seen that FTD BloomNet. members stays coming X,XXX you that and in. members in get coming coming some churn success network there, new from into new get the into some X,XXX network We’ve the in to

directory, to what services, past in seen us wholesale into that more been start really, – mentioned, say. for relationship we some us wholesale to like stable. sales really, the last I really months, marketing products fairly of the out is of we’ve services that important we X the So then deepens this quarter. marketing order BloomNet, year, and digital And that’s the the X our I number members. we saw into BloomNet products search those utilizing basically gets the and And moved in relationship volume we that as would stays as But have what’s with

deepen to what products chronologically, sell those that’s relationship, services and into orders relationships. start we the So expect. in, the Bring

Bill Shea

last in continue the to kind now years started want we’re that. from going ‘XX, margin over and of is and ultimately, It comping what contribution that we’ve ‘XX those. of against the fiscal within to initially BloomNet the model end at And the we drive, fiscal to that outlined was we come increase ran orders, ultimately, through couple large Yes. of

the – large drove impact that margins that top So had year. was last growth, line gross some our on

Now monetize is stage orders. to that the of those second

of increases increases directory selling, referenced, that wholesale. Chris in seeing the kind as in seeing we’re you’re So digital

BloomNet growth bit, have top dollars we now a have revenues So coming margin – dollars. margin contribution down in little within incremental still margins think line driving very still we gross incremental we’ll and moderating, healthy but and

Chris McCann

seeing growth order well. And some we’re as there still

a we So think we’re in good position.

Bill Shea

of political were pressures you like going help somewhat? in on, terms that indicated of there? you that And you from has Can issues Mexico idea with that the the stabilized of rhetoric that was me some wage give that happening year, just what’s know or to given last about, has talking seasonal I had kind you heightened as kind improved

Chris McCann

labor good the the I in more a about why Bill, mean But, position talk we’re seasonal side? that? you on I’ll right don’t on little So labor. now. touch give a flavor Bill,

Bill Shea

our so sweepstakes, season And a we’re as seasonal year-after-year. to We our that dealing dependency that much discounts, businesses, hire I that with in – offer market increase passes, we force offer to number like of meal on attract like prebuilding talked tight labor, et workforce. cetera, bus labor mean and seasonal passes, special most labor labor beyond of to that seasonal programs, labor and labor overall, of about lessen retention bring retain strategies to both back kind large a inventory. of certainly obviously, bonuses, seasonal costs. product We We We Yes. had workers. lots wages. and have rising

year ago. end that was this it with at of QX a inventory the see year QX in over our where You up

getting whether costing continue is aspects centers. warehouses Well, the really or it invest we in labor; in distribution important here labor, of be what’s get note you or to our it and the two labor. there’s really can very were We automation What’s initiatives, successful to manufacturing in one, two, you.

to that need labor against have season. execute We the we the holiday

dollars provided. us that’s the more that year get that guidance is put we into costing critical. So We’ve it labor. that Two, this to

Michael Kupinski

of tweaked noticed and marketing, I’m And I and some Got getting did you more indicated a extra question, regarding from final it. other the Is I catalogs you just some you movement the catalog then that that few wondering kind little strategy? of that the was before. maybe about part of there I can marketing a that had bit on your side. talk brands if

Chris McCann

getting Yes, say some probably from you catalogs been because are maybe I would brands. of you’ve purchasing our some other

Michael Kupinski

I do often. that

Chris McCann

Thank you.

we’ve We catalog been prospecting that going haven’t entity digital more and on marketing. how success the spend money increasing been for spend into of been and David And marketing, spend is this digital marketing more working our side we’re catalog real the decreasing If about of & anything, we’ve well more been marketing. continually things. there on a especially into We’ve talking us. moving having Harry that’s and and on

bottom we’re money spending into more marketing. not So catalog line,

we’ll the to We’re better see any market migrating what as better develops season. more where able more responsiveness into flexibility and given we digital see be marketing and short-term – in how also returns in the

Michael Kupinski

have. I all That’s you. thank Thank you. Alright,

Chris McCann

Thank you

Operator

Thank much. you very

Our question Linda come D.A. Bolton Weiser, will Davidson. from next

Linda Bolton Weiser

congratulations quarter. hi, good on Yes a

that was little I the maybe the maybe comment about all cadence biggest Can the million the the on Shari’s then quarter. be range it but just ballpark June million correct? cadence Berries. this in Shari’s sales quarters, of like of you recorded it’s sounds $XX couple in bigger, million, and March Consumer Berries. I was the Chris, be on It Floral. each? quarter in that $X for Is confirm a a would Am And being at would for So that? wondering like

Chris McCann

is off Sure. But opening kind where cadence pleased. being Shari’s I’ll start. a it’s to cover and to again, good ask we’re in the stated recorded. Bill as remarks, very I Berries my of

gourmet point of in only running. mid-August, seeing of of acquired to anyway, and the we and seeing it’s food all are up process going what for contributor really the our across XX.X%, slow to have quarter almost are QX, we and in low out, be three businesses. the it we in – are a category, we a growth that it we you It’s the Linda, momentum getting As quarter overall what but XX%

do ecosystem, really in built, rate us do platform we that – this contribute businesses can you will and have overall nicely, this moving we for quarter this what is So to to we see our and up growth look that like and that leverage we the XX% we continue this above celebratory tuck us platform growth.

So Bill, to what do. color we’re there? the strategically, And that’s any looking specifics on more

Bill Shea

Yes.

indicated in we’ve Valentine’s it Linda, a will and cadence the XX% the it’s QX it First, at Food so quarter, what and half of the growth Gift captured The more about about in you about quarter as and have within Consumer in to to that segment, $XX it’s of first owned million closer Floral Day Baskets, the is in is about Gourmet ballpark so million not Baskets it’s for and $X first increase. quarter. you the almost Gourmet was the biggest especially Gift indicated in – the QX first you X asked. contributor quarter. but weeks for probably with Food what That for Again, QX, or only quarter. Shari’s for overall

Linda Bolton Weiser

ask product your X get that bullish for the then before the fix they days a are days. this some actually would fewer a Christmas. Is there fewer argument they sense kind the positive – any to get to of might gifts Is you there people And because the idea can I in of shopping categories just of online effect caught didn’t kind short, a days the just X turn last-minute some as and fewer be maybe calendar? gifting there for made store to of and

Chris McCann

that more to historically And we that into theory will our that more. I’m would will I sure the agree from plans. to with argument we for I say our overall that there into certainly, our we that. we turn think. benefit general brands to love online I bake look results people at we see bake could that, food wouldn’t – look see we’d Well, historically you not make often. as to say shopping

So I’ll hope along with you.

Linda Bolton Weiser

comment and Nexus there Can can we heard bit And confirm drop just what you mean Does maybe share then a maybe of for some segment the fulfilled. of about new something pursue you? that situation. then actually of you that of the ProFlowers ship Okay. And out on being not? does in that create all down – that whole kind portion opportunity aggressively? florist gain that would little or the market? you for that closed kind ship drop And had it’s Just

Chris McCann

change. a mixture is product some you the ProFlowers What that site, what would to seen may I of business probably and the ProFlowers went out FTD Linda. of to shut transaction again, that one. think, a direction of And fulfilled now, of if direct ship down Sure, as saw was had But I moderation in all moved direct it that prior little seems and the going Then fulfilled and the we is the to I completely we’ve not be FTD transaction coming into up there’s say management florist forward. old the as the court, really completely bankruptcy speed florist product. bit product, here, real well a right that be to what no

items. to forward hard plants. reflects yet I our site do going representing – to is we’ve with I know what direct that it’s fulfilled the going ship mean, have seen don’t And a us, that impact not florist understand. there direction So marketplace, to the it seen is and is as if we that’s we both but in what it

capabilities been to in place model same-day the product, good our always that a have get ship I delivery designed fulfilled great great and of and network a florist is florist use support direct BloomNet to both the utilize think florist and really product. we quality, how and we channel in has our we really have primary

box. great with also just fulfillment BloomNet this same-day design the great So BloomNet, different It’s the to benefit different us times. at in we capabilities flowers real category us provide capabilities, with That’s belong yes, again, to as here. councils design a but in they look is, not members they that at provide BloomNet

Linda Bolton Weiser

so thank you much. Okay,

Chris McCann

Thank you, Linda.

Operator

Thank you next question come Capital very Alex from Instructions] Furman, Group. [Operator Craig-Hallum much. Our will

Alex Furman

when to for wanted season Thanks us my into the that us now some year, your about the what specifically, a really those to all. the or you those for question. those Passport up sign been holiday customers when which you a periods, from seen key back lift Passport? the when And people or times ask get slow Passport get to Hi customer? customers you little Passport transacting? tickets you from And larger with it. I curious have getting coming getting similarly, transactions – then nice talk see Curious are Passport close that the lifestyle self-consumption bit about they’re during of customers? that or you more Can incremental typical perhaps the to during from a program, it often really more have when taking we’re holidays? is holidays Is of perhaps

Chris McCann

Great, opportunity we’re we Alex. program more naturally continued working do Passport first Yes, glad to nicely very program. our you join the it’s about see spikes the around of the program. Passport can for different the and coming that your From holiday sign-ups, us, is question that from see growth when traffic and up have customers of and sign sheer volume we site just the seeing to because of

the year-round a X And maybe multi-brand go X say, or As spend, far is an say X customers. Passport increase Passport, the average to it’s from when when because join we times average, see a a does do times we of purchase of become year they would frequency. as I let’s customer they what more spend

holiday So big seasons. not occasions was the and that everyday just the feeding into key a

not out increased for lifetime that it And comes So comes it the with really only but of helps grow drives that frequency we of program, usage to usage, retention, frequency that us. more clearly more things the value. round

Alex Furman

recent before there? is helpful. what about can about a one you dates wanted there’s is ask the key holiday really certainly website, That’s about just long same-day more to Great. color have able but impacted not thing to been give expectation other And throughout you delivery sure much then this, during lot on talk Any that us be I that to going seems if orders lately your same-day the I’m curious if p.m., how something season? marketing how that necessarily you’re results? you order been X:XX offering your on can And offer you’ve it. your

Chris McCann

with our cost critical expertise Yes, I of in on and floral and constantly and within whole zones, or etcetera, the within delivery, customer constantly of florist afternoon years X-hour also and that our the with delivery both being we working enhancing the that a that into capability, business, so and the the delivery, an like morning zone time and worked time pushing think other speed understanding delivery is network that, services moving in over certain we’ve that a delivery needle extension same-day really our good it’s that others. roots floral, have delivery a just of focus with experience with it’s then of with focus factor DoorDash

same-day the because really that. So pushing on the of we’ve that. been in our factored it into we’re I envelope say a constantly results continuation delivery, it’s driving wouldn’t has

play I think that really move we next capability. into to a start day, products as other same-day delivery the be would longer-term

Alex Furman

very Thanks much. helpful. really that’s Okay,

Chris McCann

Alex. Thanks

Operator

you. Thank

Anthony Our from from Sidoti & Lebiedzinski next Company. will come question

Anthony Lebiedzinski

Hi, taking good questions. morning and you for the thank

may gift what that you of was I out basket the that shift the shipments, impact in GFGB this, between quarters? called the So have missed but

Bill Shea

was into take it million from give QX. Yes, of probably forward million QX several or $X dollars, pull

of but context it still in the And quarter. Even within XX.X% to that, over the Just that, want the quarter, be XX.X% quarter growth some would growth GFGB. million. rate growth X% about give would have growth still the $X a low-teen been it in without our in kind

Anthony Lebiedzinski

Got it.

obviously, first fiscal year. strong a very the start to a Okay. good very had quarter, you And

guys, your did the big quarter you a you And reason year? do big in why quarter. you really for changes not change the know But it’s you is that landscape landscape in I to roll you of in much that with. mentioned competitive the change? terms to second haven’t a that seen fiscal guidance for competitive quarter You full anticipate the into as begin not

Chris McCann

change No us landscape, think such guidance reason It’s the and that we well the at continuation to in we’re But we we I the wouldn’t momentum look don��t holiday seen haven’t – QX work is, of a just seeing past. big at will Christmas with within specifically the our right positioned a we’ve after changed a quarter expectation is QX that as really. why is guidance. competitive It what promotional we what always are holiday. and now. grow be continue environment seeing to for that

So at which nothing in seeing brands, really season not we’re seen any driven really the food from competitive this what we’ve holiday the front. different this is mind, all in change on And past holidays. by keeping again, quarter,

Bill Shea

Yes.

of we’re quarter, we on are, guidance. where momentum far just overall first very is into comments and our couple referenced, think quarter pleased quarter. I QX Chris what the Obviously, more our largest the as a is and the by in we second QX But smallest we’re quarter. achieved with carrying the

I first kind it’s halves. X a half QX company think because at number the on of year the the this said really at occasions feeder of of really that to look is we’ve QX. Look the best in into

and the at total second at floral shift year looking those more Easter, the the becomes in at half looking year the because on of looking combined half first which then So of of the basis. a in

as result, this a are in adjusting guidance time. not we at So point

of we’ll the the last did performance the adjust upon first when and and year, are in results. through where next the we our was, we As we get based our reassess year, guidance how we’ll half call

Anthony Lebiedzinski

your a gatherers just just business? comment impact could does – on flower on far provide for FromYouFlowers, that from Got And if the thoughts example, how as the overall wondering you them Thank impact like you it. overall as or are what that your clarification. for

Chris McCann

the look FromYou specifically floral customers competitors, we as you in landscape and like a Avas, the or that other at an talk landscape, of about other they’re good BloomNet. florists So

players. And very again, with provide support. have We relationships great We them supporters good those BloomNet. of good they’re

thank So will we their them for business.

them very consumer we things. the an of It’s that with interesting one side relationship have, compete well. also that works on but We

to So our partners helping business. like to that overall work we’re grow in with happy very

Anthony Lebiedzinski

$X far the lastly, for And ‘XX? it. as about Got million as tariff fiscal impact, is it still

Bill Shea

is inventory. the roll on fiscal tariffs Yes, we going we a those degree have were the then we buy have Then last year’s kind knows threw into October in been to be. piece think pulling have that, of have – December And the we last tariffs mitigate impact the we early. that year’s our last tariffs, September the that ‘XX, where I that Obviously, impact to who tariffs, out year lot of by I deferred. some to tariffs the as that’s Anthony. able the August have number call of that inventory – biggest mean in back

you $X-plus the million. on think I impact of if add costs up, it our would all that all be

the there. help saw things some to of current the this year balance, end you tariffs. done at year cycle balance year we inventory year ago. we inventory and the One, did September more have in minimize Again, contemplated the this October. versus And the seasonal tariff of September some We Two higher bring some inventory higher a the early are to plays labor. that producing were address avoid for to

of expected year’s our lot well that the based business, of as able excess price last on in tariffs are there as through in some probably the We’ve implemented that currently upon overall December. of been is million direct-to-consumer a to $X line side side increases wholesale mitigate the out to both tariffs. business of bottom and So especially in be the

Anthony Lebiedzinski

alright. thank of it, you Got best Well, luck. so much and

Bill Shea

Thank Anthony. you,

Operator

to now over session. I Chris for This McCann like much. the very concludes question-and-answer turn to closing conference you any back our Thank remarks. would

Chris McCann

again for joining you thank us. Well,

we can and position. the are good next sitting As coming for quarter see, momentum we into in you a us have good

thank We everyone would encourage upcoming growing all-star Halloween holiday a for happy you. we Thank interest early to your brands the have family files, Clearly, and and for you today. like your wish you us response, our for attention we of often a and joining good season. and visit got we on call and customer the to

Operator

Thank this concludes you very and now Ladies much. gentlemen, today’s conference.

lines your disconnect you. phone week. have rest a may and the Thank You great of

1-800-FLOWERS.COM (FLWS) 3 Nov 192020 Q1 Earnings call transcript