FLWS - Earnings call transcript Q1 2021

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Operator

Good morning, and welcome to the 1-800-FLOWERS.COM, Inc.

First Quarter 2021 Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Joe Pititto, Senior Vice President of Investor Relations and Corporate Communications. sir. ahead, go Please

Joe Pititto

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

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

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

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

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

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

Chris McCann

our morning. Thanks, this Joe. everyone you call who’s joined thank to And

and our As relationships of for long-term growth. us have deepen with to business really see, benefits the to our the we has our the can which drive results customers sustainable quarter demonstrate first platform, positioned you

the the have three by revenue our drive as achieved reflects business business growth, we momentum our quarter, This growth to growth. segments. we in driven across profitable continue For XX.X% strong XX% e-commerce we

represented gift gourmet current floral key on macro see trends in five and have we In And been solid Trends momentum consumer some what taken sixth year-over-year may in sure. and business and BloomNet for than have today. year, food QX the we which consecutive see segments: baskets, each into frankly, the years three continuing gifts, the our our fact, recorded quarter of growth. business that, one environment, that based accelerated dramatically quite condensing by less strong

shift a tremendous leader we to the all star where of as e-commerce positioned First, are collection shopping, brands. our with consumers of

in home, emerged is increase convenience new to and around prevailing are the home; the everything And have nesting these to people seeking from third, spending time the as and times. time their less stay-in-place traveling sentiments people Second, at challenging more more are that add centered comfort and lifestyle.

more connect you more, lives. of leveraging to in our and customer marketing manufacturing, capabilities need positions inspire integrated capabilities floral, from to need people our which foods, gourmet more to value. for for includes more our personalized recipients with uniquely sell our business well-positioned and their customers' lifetime growing and with leadership expression, on the need all vision important file. Specifically, With occasions, of logistics our we can products, our thus of stack, technology our our distribution and people's platform, star our increasing and to and by our connect trends are in advanced themselves build their With we these connection collection celebration, express and to benefit brands,

marketing to are our And and these several Over expand that customer focus investments to on we engagement, strategy: results execute on enhance the to our the growth customer and evolve our loyalty. enabled in our file we've us years, well areas. made reaping our illustrate benefits accelerate offerings, has platform past our the product that

offerings as plants our Tins and new our Harry has expanded Harry Wines product by we of organically line, Factory's shop the gourmet line. house with such The been popular collection lines for product expanded adding succulents Pop plant David David X-XXX-Flower's and wildly & & us, example, Popcorn our For that from including

Personalization offerings Mall broadened with Shari's further year last we the our acquisition product this Now of Berries year. and

investment, on and today. remain brought on e-commerce focus to our A enhanced have and capabilities, more in customer growth quarter in has our combination us digital our delivering marketing hyper-focused than first XX%. where strong strategic expanded we as leader of our industry, We and customers always, execution, are The of driving exemplary service. we

As and enter our we the our will we continue to holiday drive leverage season, momentum. platform

can. we We and high, our expect as possibly that gifting for satisfy gearing demand as will demand everyday are remain we much to of that solutions up

retailers. doubt, challenges all will as some Now face no virtually we'll

shipping labor facing third-party constraints, and is are As not the levels. qualified preferred our at companies always capacity

We few are as for strong issues our execute profits. Bill working minutes, And plan against for our outlook for record revenue will and which as largest QX, these is our to know proactively discuss and is quarter, you growth. manage seasonally in a

succinctly, we PMall throw I in a we latest some moment me are Put can wonderful on to blankets. acquisition, browse. and you a of to offers provide encourage process. products of integration of a making the integration turn allow acquisition Mall. could color great that with be be call progress visit to that and Before And our assortment, I the frames, with glasswares you with to PMall more the we pleased it assortment personalized which Personalization not from have tremendous to take our holiday Bill, the picture to

technologies, industry's fastest automated ordered. is same with turnaround capabilities. photo In with including among offers And range personalization orders day PMall as one laser often the shipped as industry's of dozen processing and addition, PMall a as times our the engraving, sublimation, of the well broadest more highly capabilities, completed

you all into integrated may already noticed, have Passport we've our our program. multi-brand PMall loyalty website onto As and

gift in holiday guide, file notebooks. of including millions already to PMall to existing holiday introduce and gift our our we've PMall leverage digital of our merchandising, of everyday and to PMall customer our leveraging customers begun across teams terms into In broad range holiday our and digital for We're new marketing And cross-brand channels. a development communications. we've and season content creative with seasons co-branded sharing integrated of

full PMall on are point, strong will a I'd accelerated As we like holiday seeing where year. One line in we bottom for our important anticipate the area season growth. a top and for contributor be sure fiscal last and touch another to upcoming result,

in Passport to growth, In customer program well see to multi-brand customers. our addition growth we and our files, our as double-digit revenue continue in accelerated strong in membership as growth

in have The the and in growth continued enter retention, well we shopping and strong along frequency, growth lifetime customers are holiday the customer As program with these our past, key multi-brand period. best-performing emphasized purchase Passport we the of as value. of files, cohorts customer terms our bodes in our

Now, looking our across ahead, we have strong segments. three momentum business

to excellent great our to and And over rapid is grow our proving And continue PMall, pace, all-star and latest to addition to customer our now, our platform Bill. metrics the turn be We to a behavior already fit brands. customer acquisition, call collection an at to improve. files I'd a our like of on continue

Bill Shea

Chris. you, Thank

strong carried are noted, from and And year. off As pleased started strong XXXX we growth Chris top bottom with have momentum over our last line with achieved quarter. we fiscal in the we that first

flexibility PMall strengthens acquisition, and of already the was on strong standpoint of the quarter and facility also successful of closing completion our first balance Our added credit an financial sheet. amended provides the our

we business momentum see deliver segments As a and strong will are our three for period. as well key we season, enter enable result, us holiday anticipate we results across the positioned the we the to

Now, highlights first our breaking down some quarter. from

$XXX.X revenues. prior-year in increased First, Total period. revenues in to terms compared $XXX.X million consolidated million of the with XX.X%

This related XX.X% of to plan, and leverage our deferred to reduction and impact basis revenue PMall, in in the mix. in a which growth floral primarily reflected XXX platform. ability associated gross increased of gift points improved increases costs gourmet strong our prior-year strong was growth PMall. during unchanged we August points Excluding gift this driven our compared profit period consumer XX.X%. both acquisition period segments, exclude sales, the margin the with one-time offset the with and points profit primarily at of by of in food margin and product XX compensation e-commerce adjusted, Operating the was expenses, to of total XX.X% Gross baskets the growth quarter. reflecting expenses, period company's as the the basis and BloomNet, year, by XX.X%. demand, consolidated This total which XXX(k) basis as increased XXX operating the for in adjusted, non-qualified acquired Operating

our a loss million these or prior-year adjusted with improved by EBITDA of million in to of result the a $XX.X As factors, XXX.X% compared $X.X period. we million, $XX.X

Our of in loss or prior loss net to $XX.X the per period million share, adjusted or net $X.XX also for the adjusted a $X.X of nicely million with improved compared loss an $X.XX share per period.

segment, profit The to prior-year e-commerce by representing period. Wines, revenues revenue XX points, sympathy in we're margin and with period, XX.X%. our points prior-year retail anniversary, brand. $X.X we fees we leadership made BloomNet well floral million $XX.X with by from quarter contribution birthday, brands grew well, compared in prior-year the improved now shopper a offset prices decision both from XXX XX% with in a from loss each florist-to-florist buying XXX%, various margin days our season as compared with gift loss to of waiving XX seeing Harry more the PMall, our to $X grew Turning reflecting compared significant and attract compared wholesale million services decline base $XX and the XX.X%, or period, the the approximately and significantly primarily volumes. are our and continue and a off basis results. hot XX% margin compared million of baskets renamed approximately products, increased contribution in the Customers period, increased $X.X industry, with Gross In the X-XXX-Flowers of market compared which increased XXX.X% & and orders more orders. as quarter the the $X.X with margin, basis for providing reduced others. a increased brand, everyday quarter. In segment period. increased associated the Segment margin primarily XX% This Gross the Segment driven which a florists margin the strong brand, reflecting including gift pandemic, this growth brand primarily early more million $XX.X the expanding profit the million mix. in as was X-XXX-Flowers Harry a prior-year in at holiday of fulfilling in during adjusted, reflecting back of grew $X.X part million, contributions in XX.X% the and million in order business, line David grew fiscal of from food growth XX.X% wholesale & e-commerce $XX.X for XX.X%, prior-year order volumes, decrease services and the $X Gourmet contribution of the products to loss as by accounted in prior-year $X thus with $XX.X product as segment, we goods, in florists David paying on was million addition revenues revenues to to period, Gross of continue for David BloomNet XX.X%, Harry In increased and and driven million than products XX.X% of approximately both gourmet Segment among increase. in growth membership gift period. XX.X% of in the the million, revenue X-XXX-Flowers for Clearly, and to to growth & XXXX. with embrace includes the $XX.X get to help its or of including also million nearly XX.X% the compared stores closing in to is million points The the for further occasions, to million, in PMall. basis basket our in such the fresh which younger in segment in largest recently floral to consumer position. prior-year

our balance sheet. turning Now, to

quarter, the the million Our year's was primarily at cash compared million investment related at end and was end $XXX.X of Inventory $XXX.X position $XX with to the inventory first last of first of million quarter. PMall.

credit million million we of million incremental credit expands credit debt, amendment In balance under and on in our added we existing facility. debt, $XXX million. revolving revolving flexibility financial amendment The $XX our our terms in of to had an credit line May of in term million provides strengthens loan to closed credit components August, In $XXX.X an including our borrowed adds facility and XXXX. The the from $XXX All mature $XXX sheet. amendment further facility.

guidance. Now, year the in uncertainty the fiscal turning we providing to ongoing time. the for this at to economy Due COVID-XX full guidance continued not to pandemic, our overall are XXXX related

to XX% including by achieving fiscal period. growth second quarter. the in and stores. reflects revenue the quarter e-commerce and we wholesale the second XX%, Harry second prior-year quarter closing the of consolidated the momentum, lower through current October, reflecting our first that range with this growth offset month from carried in anticipated PMall, retail Based the our demand quarter, quarter of XX%, & e-commerce year This fiscal this revenues, on than we retail the expected David the compared growth continued the for orders anticipate revenue the strong Regarding of growth total of more first into through somewhat strong contributions reduced

help shipping retail for during results due the increased the line wholesale growth, vendors, pandemic and combined in PMall, with anticipate higher the operating costs, contribution from the quarter, bottom strong offset higher Regarding revenue costs the and costs will to we quarter. second channels the third-party contributions loss from including headwinds, COVID-XX labor certain that e-commerce

a compared back we EBITDA call the of and XX% the quarter, driving to year. in range XX% to prior As anticipate adjusted growth will I the result, for Chris. turn EPS with the now

Chris McCann

Bill. Thanks,

our a products by for decor. continuation gift order of business, can an have leadership for had market David's food our wholesale making star market X-XXX-Flowers with that already an and we e-commerce to you results on to on This excellent brands. a continues the gift complemented past growth the fiscal extend e-commerce in category acquisition baskets strong offerings, growth momentum see, we with of and gifting segment, PMall, BloomNet, quarter brand we of product the Popcorn well a the our in innovative, industry. revenue expanded products our business. continuing demand In as is and & are So proving strong fit largest several represent position bit home first bottom the of XXXX. as our in platform increasing personalized and years. the growing for great Cookies volumes Cheryl's top built its and excellent start on to other assortment us gourmet gourmet all The position leader Factory, of expanding line which collection now and our brands, In gourmet the we as growing fast-growing with In Top be base trend, floral is and further Harry share from

customer the weekly with relationships empathy celebrations customer into These accelerated deepen community. enterprise our growing begun In evolves grow perhaps efforts emotion to Jim that customers customer I And around important, we existing than open continuing to and build such two-way and rather out we've are our letters loyalty Passport the our an membership across demand an helping to and growth, our addition, new customers, dialogue, engage through customers in our to from as interactive send post a differently file program. customers with transaction. and our increased customer file designed customer have with as we're most

drive experience results. we line repeat key again an for positioned call would head are holiday So, Q&A? as Chris, it the that, turn we deliver and for top strong the very open bottom please again well questions. customer I'll Chris and season, continued to directions the excellent With to into to you the

Operator

go [Operator Company. question Dan course Please instructions] Benchmark Kurnos sir. ahead. Of from first The Our of comes

Dan Kurnos

give integrated on tell around multi-brand, especially personalization And it any you do if just were on just there's those be feels growth it's it, customer wanted to Chris, anything not around, Yeah. closed rates? seeing more talking traditional particular gave I if behave improvements. Good And KPIs you quarter, And and of sequential there Passports year-over-year so, are about did can percentage it other from along is some think, to relative of again, were color morning. Is on us thing, maybe you color anything site? there you clear, mobility; I And the super – is I less the or probably they channel? like last on think your that's sounds you're multi-brand? customers quarter, that what's of How like the you it whether and what then new just a coming should the you chance customer integration the become profile early, this further like last talking take well sort they to PMall, there you're – they Passport kind holiday path. I And know on and or they inclined can us browse to period. set? and good reduced the brands? Are

Chris McCann

you Dan, very question. for much thank the Sure.

the year-over-year business, the really that feel growth double-digit look not quarter, We becoming double-digit we past people Passport as better. program. What we're growth well sequential. is we're year-over-year, the both comparisons, you customers, I as seeing report joining we rate. don't multi-brand quarterly With As numbers. our gave That numbers our seasonality seeing at in on good do much is sequential people

that well, as rate we're And rate very year that conversion Passport the that, nice seeing into take or accelerated don't new We seeing, last mentioned the rate we're importantly, think increased seeing. program. I also the growth publicize number, an also with increased but on over and and we in quarter nice a As that lift customers, existing conversion both year. been do it's this new we're a from I seeing lift we're customers, and

So, And members file for what all that a first frequency the increased of spend and seeing And comes day the of drive that's that, along us. every customers. that being purchase. our Passport larger percentage everyday in and/or customer is encouraging very we're the increased multi-brand customers with following

cross-brand on So, early seeing and well efforts. for multi-brand we're we're capabilities. I and working of the capabilities some us our the Passport cross-brand that say, marketing stages very now And still, very, would in still merchandising

answer on Personalization then on – to very We're that have So week. got on it up to making the thrilled the Mall. your your that question up leads with on progress me we're integration. pleased it this our We website. just We're

their of have work them feedback don't saw cross inform to now tail migration. there. as would to the new well. that. had really And any some we work response PMall indication the communication I Passport our see brand So, was good strong that got to of response customer the members, as the What login database well – in we sent did the through with We we and as general on platform their out up X-XXX-Flowers we login as good to would the capability credentials fact login some

we well its of product PMall received X-XXX-Flowers the the that the our customer the on existing indications early that be expectations. And ahead will own have very line business base. very by So, performing are is

Dan Kurnos

follow-up then helpful. and Got quick it. then, Bill. one just for And one maybe That's

Chris, share talking a sort sort know the I trajectory, of feels sense you just of base, terms is guys of point. like of gifting wallet as percentage a Do starting think growth what of balance surface. the that do the this customer scratch a you're expanding know customer and we still, budget? your file of kind in between you more forward the you have because it to your Just becoming customers' share? of of existing currently wallet growing have you How

Chris McCann

on seeing and We lifetime look at share metrics. a to internal wallet What retention value. the No. customer don't thus, really our We're frequency, we're focused is so much. metrics behavior really

going what So our sustainability that's that in gives confidence growth forward. rate direction, we're seeing and right good, strong really move nicely the of us really on

Dan Kurnos

like either giving of do Fair Is you're Bill. any what facing. And I just you sort way Obviously, to then, know from kind kind And the the to COVID? Okay. in that plethora what is impact for of Are – are place? you headwinds margin you margin you up maybe usually of try of you putting around this can margin a enough. to quantify Day, some mentioned in had some you sort there lot think sure get are pull which to ahead shipping increase dates doing to try of the around to tougher get other but out, you everything Valentine's you the flexibility up season, holiday to are of of get obviously? you giving you forward like try so is or Day, things demand Mother's make

Bill Shea

– not very headwinds we're as higher similar mentioned. costs, cost out Dan, we labor Yeah. being have companies face like to and that headwinds there higher we've mentioned, we're Those that expenses. the many shipping COVID-related

an on and model this So We've has QX demonstrated in that significant in the impact QX year. leverage us. of

still And is the shippers showing the Our as not the of with level of leverage. for as quarter the that is shipping perishable But shipping line, show with line. month products, does challenge we ability them delivery that's customers record to only. hard to accept as like numbers during – to in get same The the as much second both our yes, incentivize and well top having early, guidance our into we December to where bottom move, third-party month you'd of of kind buy for as it's with that December.

to significantly. continue incentives the it do So, impact we to but that, that look needle doesn't move at

Dan Kurnos

guys Thanks the all color for another and nice Alright. print.

Bill Shea

you, Dan. Thank

Operator

Thank from of ahead. next you. is The Please Alex go Fuhrman Craig-Hallum. question

Alex Fuhrman

going taking this I that strain be my about of there's lot chain to shipping supply a for issue also seeing the wanted and, much about to the course, question. talk on Great. just year. Thanks very the

of into this that a shopping times in would? holiday any Just delivery how have season? season you're that estimates what And could Is you in concern normally result quoting versus much shorter what visibility wondering there times? terms you sort customers of

Bill Shea

put The third-party capabilities quite to has in strain the bit e-commerce consumers significant of a Yeah. on of shippers. shift the

and in many reading You've been media. have the FedEx, I USPS, well UPS, heard documented stories about

is So, We all We're guidance. higher work closely these are volume. with all on We've the even And ourselves, shipping results very capacity, the retailers, navigating including as with well these through bottom that primary constraints second top line constraints FedEx. into the built anticipate cost, on which our facing cost quarter. as constraints, shipping our partner, in record higher we challenges. and

Chris McCann

based think our we on I so shipper, And fact primary worked the that Yeah. well FedEx, and with so closely specifically.

I then, think, a times to expectations we to manage. good Alex, communication shipping very visibility have we we're what into that. That's that challenge, do we're customers' see our always should and trying able around adjust our

think So, yes, have I answer it. we the into good visibility is

a our four we extremely over and fairly year, experience. the is can numbers in have that this which We're guidance in that team Bill customer gave this last still confident what holiday through that season, well. for times a We produce and manages the provide rate growth navigate holiday, that challenges that we was gave great

Alex Fuhrman

That's terrific. you very much. Thank

Chris McCann

you, Thank Alex.

Operator

of Thank next from you. D.A. ahead. Davidson. Bolton-Weiser go question The Please Linda is

Linda Bolton-Weiser

Thanks. Hey, great.

you're I questions well here customers think you the retain So, maintain been think investor gaining there's pandemic. the how around or you during can some that

indication purchase e-commerce Thanks. that's that people on think can giving? at increasing also, maybe kind in because And participating actually that of about So, average more X.X gift your year, times maybe you comment there per is any I of in least are retention. floral. for rate Is terms

Chris McCann

that for you Thank Linda. question. you, Thank

just we've look very it's built the past we our at to years, that and as momentum Now business the continue see that encouraging to few over grow.

because for up It's XX% moderated not look and we nesting, XX% not between changing. to away. from we pandemic. XX% fantastic trend on, expression, them is that general. like strong acquisition increasing it's second three to digitally, there building need real probably the offline what's why people the e-commerce the been pointed somewhere sales. to said see now, customers, just impact like seeing companies that you And been that customer the with a celebration it. to aggressively grow of at us, that rates file that in consumers new nesting. we've going into of that on retail, early it. the several we've growth been of Then to trend all stores are of The help it's this inspire benefits that's but businesses look trend to the trends Then right is been That's XX% reap looking that product our So, went to floral food our bars, connection, ours trend. And products is a or Mall leaning as that and we years are restaurants, to even customer we seeing. trend well even suited there's really momentum, human a how we've with we're certain learned that as There like that we're turning and do with line in devastated from e-commerce our at now we been more opportunity growth file, really and been vision brick-and-mortar we customer pandemic will that so And of Then believe of to business the plants out alliance. we've out so out. behind impact. well And And front our Personalization businesses by of have retail And connected binary the into businesses of and then gourmet it's gifts the online, dramatic coming further that. shopping shift fit people enhanced that third new stay real to like and

the add metrics we you that, we're factors you positioned frequency increasing for seeing did you with file for, and those those long-term asked size of metrics combine we in the the behavior retention all platform together. we just behavior that over Yes, So benefits about. take components, see we that we've the built are so that momentum the Personalization of had, Then well of better, growth lifetime Mall, think and that value. positioned The trends the customer when acquisition we we increased the and you years. sustainable and be customer couldn't well

Linda Bolton-Weiser

can you And the color think going of in And waving you that just if fees you. can concessions least, that? revenue or nature, margin or does BloomNet, also, of that's that's something Thank on florists. at that? that can the us to if something line past? gross little still affect give Great. more periods, of given past or And something – had the I Maybe some line some you then, or on, a you update or on the quantify can in you BloomNet

Chris McCann

up mode, as the they've choosing to we That's Yes, and our us fact, much, Bill very hit, growth out, and which we in to done in really other market. to people we sure competitors when more pointed and our reduced pricing you other out focus ways, in some the remarks, do. his gave as turning BloomNet opposed QX, market. very that wholesale again. of to to mentioned that with pandemic our send florists business the and waiver grow. now, is in programs opposed was started survive, competitors we helped we benefiting our florists what the That's fees, the as concessions make thank nicely. in around some the from through help in And products, Linda, the Well, BloomNet first their to other again, orders in florist. compete some florists, marketing in as That's help to to could of And purchasing

loyalty. right? the quantify I'm customer not Bill, from we're seeing if sure quarter, last that So, they

Bill Shea

contribution in quarter fourth double – mean you with were why the $X I was the back growth as saw Clearly, growth contribution was quarter, digits. quarter. almost in in in we QX, reason revenue And the QX, negative back the just that's line margin the the bottom up slightly below but right decisions the the in made margins million then with in reported XX% as we QX, ones. Yeah.

Chris McCann

It's Yeah. team. a care really doing job team the a That taking good is BloomNet good florists. of

Linda Bolton-Weiser

Thanks. That's you. all me. Thank from

Bill Shea

Thank you, Linda.

Operator

Co. The go Anthony you. is next question Please Sidoti Lebiedzinski Thank ahead. of from &

Anthony Lebiedzinski

the Yeah. Good morning question. and thank you taking for

as file give brand there that as stands customer the brands, is you because missed may then So, you as seeing are And customer any far customer PMall, file one acquisition? of as as for concerned, as look file, or so you growth filed far of at I customer incremental us far growth have out? wondering this, your the can all indication growth just this is PMall the when that your across but any

Chris McCann

Anthony. you, Thank

we and customer is Harry look the all that With the customer our two largest the growth, lead efforts and it in acquisition largest keep And brands But first same in of that As recognizing the date, file brands, across to but mind, all, brands of at X-XXX-Flowers test our brands. the brands customers, two growth, -- is two obviously, all also value David. are important. across really & the that's with the and really, they're is to with we're bringing also where seeing a that thing our all growth them. brands, for the the solution we're market across growth multi-brand customers, total said, for

So, with very we the pleased we're very, visibility there. have

product and million X.X X.Xmillion, number XX-month customers active PMall As of The excited line our million, – solve X.X we customers help there I more at further very of the see that into base in be items to points PMall line us. we're drive lower value needs. give points is the the even of things numbers, as that, recipients active lifetime we all really meet the products drive there that their customer product gifting price we for more help PMall our from to of what point more our file. adding is we forget price the that lower more expanded just million, one price across look X.X usage of about XX-month at our to the will about from broader is, the line, we'll more product to points, that range that believe in helps expanded range, price And again, the a, frequency

Anthony Lebiedzinski

Got it.

Okay.

get PMall, a as what or sense customers? as sense million overlap far million current X.X do customers to new a with to as not? to your if Just customers picking brand-new like those you to – active So have X.X you're want the up for as is

Chris McCann

turnover was David, enough Harry give ability our there in grow like to file the enough purchasing. the & multi-brand us strong just crossover to There's – confidence to there in

a crossover there, not So, there's significant amount. enough

really to those file. of are majority new the So, customers

Anthony Lebiedzinski

it. Got

just saw in versus QX, that Okay. the And that as give that breakdown and wholesale then, had separate you drag as Bill, maybe between saw, you in us can headwind you the retail a headwind could far you wholesale you if maybe, just – retail quarter? the

Bill Shea

Yeah, Anthony.

So open in wholesale stores million quarter. this $XX having not David it about was about $X & QX, year-over-year by down million $XX combined, about Harry for million and

Anthony Lebiedzinski

it. Got

thank you. of Best luck. Well, Okay.

Bill Shea

you. Thank

Operator

is Markets. Noble ahead. go question next The Capital of Kupinski Michael you. from Please Thank

Michael Kupinski

taking weren't inventory know the and past any congratulations in you Thank quarter that I your disruptions a I from indicated on you and know is during this that COVID, for you quarter. that my the of questions. midst big And product China. that thanks seeing

just you was of or sense that can So, you whether shifted of products a suppliers just your increases the And seen? – in wondering the away us inventory from have China? type give I what your of you if have not

Chris McCann

look, the in, far problem a big bring that, I that fortunate imports back think time a China. late the lot, shipping, our And coming concern bit Yeah, getting we in period. from components a April first and early really, And into what as chain. then. of just not as the season, saw supply happen even more part from are since we've would at China on, been in caused Michael. not holiday disruption, that And the was off, inventory, Thank little you. moved got of as inventory significant this we in, some we better as for look Things we very us March,

caused any customers two major and been to weeks our service to week has sometimes, without that and not utilize appropriately one disruption. able late interruptions. major a run that they While We've

well some are of We've China. studied that's China. up of even out really more, worked some So and out at just sourcing us. bit like as capabilities, done more it other really looked set shifting for little a geographies aren't we it. But we've And

out the off sourcing coming world, So, to risk that other many the tariffs challenges, of the better with exist. of we some might even some around any places at even with continue of look China, mitigating than we're there although still

Michael Kupinski

– any bit affected it's or know PMall, that have the if I additional that Illinois that business of in Chicago? COVID. the the of Got terms I you placed based little in revenue just that probably restrictions about impact And then, has was of you. not has talk the in PMall, could given those of just of state. of also, governor And a outside terms there, seen wondering certain trajectory terms in given Whether areas of restrictions

Bill Shea

we kind QX, kind gave without results – of and both – In the it PMall. of pre with

So kind of PMall. that related go about through of understand points the XX growth math to was and our

revenues in Almost about was so QX by XX% its quarter. its $XX QX. far, or in it the biggest is, million So, are quarter. of

of positive of user certainly, One happens positive very the and it its quarters. this as quarter it upcoming important that all PMall But of EBITDA is quarter. every this during is attractiveness is contribution to four nearly in to

not It's PMall have We year-over-year. nicely seen growing since in any disruption our very ownership.

Chris McCann

the at our etcetera, process looking, of seeing in getting digital growth PMall. I and say, the owned involved ahead as we've we're marketing would mentioned, PMall since nice the really expectations really content, I integration the team started looking Bill, creative, rates and

affected the announcements from very As And think that well at have far this point. in the have they positioned won't area Pritzker, interruptions. our any land we're facilities Governor Chicago as not we we

will right confident Of course, be that visibility pandemic, not you in the now is this we're have we never interrupted. we know, but

Michael Kupinski

the that facilities you state-of-the-art I plan has to consolidation more into of some facilities, been any be your that terms some issues move the that among in had Does some and know consolidation longer-term of facility? kind the Illinois in given the offer ways location, fact that and that other would markets? Pritzker, PMall's in probably Governor does anticipated with products inventory restrictive of to opportunities that many that potential than situation of there derail COVID that your

Chris McCann

just not with we anything as Illinois. of mentioned year had Illinois delayed work or April, in much Michael, of that in into facility were on the projects especially of efforts facilities in the any the We pandemic, this time able so our March, far May some to needed. early the and the calendar previously back for facilities weren't had by do some people if as frame some the planned bring the was automation to automation do that we been restrictions as to

Most So newest and Ohio was that in that. that of January do our where post-holiday that work in more be had now facility – not frankly. our specific, we But up will was move really focused Illinois Atlanta. into as facilities we'll pick able to on quite

back up we So, now picking while was there a see post-holiday. delay, those again

Michael Kupinski

to unrelated was that And PMall?

Chris McCann

Right. True. True.

Michael Kupinski

again. you. Thank Well you. congratulations Got

Chris McCann

Thank you, Michael.

Operator

Thank go Please you. from question Doug is next The Research. Lane ahead. Lane of

Doug Lane

Good you. Yes, Thank morning hi. everybody.

closing You million. you acquisition Harry & PMall mentioned David for what a stores? sales contributed number the lost about that Do XX have were from the the

Bill Shea

the in Yeah. It was about million X quarter.

Chris McCann

In sales.

Bill Shea

channels our We're in and down of retail million being being million million about – in X the XX sales X kind retail million business, wholesale – component XX sales. quarter. of wholesale in the the

Doug Lane

it of kind And updated sales was EBITDA any we acquisition and from can Do Okay. you talked numbers announced any year? around from for this since numbers way have haven't PMall then, about you look back pre-COVID. that

Bill Shea

on Yeah. a We guidance brand-by-brand don't provide basis.

We have X-K/A. filed an

of out filings are size there and respect PMall. profitability with historical there to So the

about million year million XXXX, XX XXX did ended under EBITDA. contributor the And or in PMall For revenues. XX, just February in

Chris McCann

since that I as seeing And very been earlier, we're operating stated business. pleased we've we're growth the with the

Doug Lane

from growth big sales demand, a this And the generating which seems a be more from big these concerned numbers to Harry quarter it the we capacity? No. whole largest is your at know your biggest should And December look was before the like It quarter? sounds for about here? has was quarter going Is constraint smallest then the are at the about internally to than you capacity December in Because your Can where better we growth come back business or even Chris, seasonally seasonally we about are and you're in standpoint? there, that's the quarter. standpoint. the you sure. or how it do and Obviously, from & But bottlenecks down at the focus spring, in shut infrastructure, just just a shippers. quarter at think how bottlenecks David it third-party on

Chris McCann

you, Thank Doug.

seen trends as we've I things change that we've that things it more the And changes seen look than we've we've pandemic, I different for seen growth in at We've many – anything else in this of accelerate business we just this e-commerce, mentioned accelerated many and not some seen businesses. everything this in in fields. think developed else. and as the have for earlier, healthcare accelerate seen, our so but

growth So, that for our I challenges rate for sure. seen it, think business. what certain accelerated with an is And we've brings

that spoke challenges shipping third-party that mentioned. Bill about the have We have been

all have time, the are at we the accelerating also, We there. our capabilities. But same internal labor out challenges

for possibly has planned be was now The responding the that. year doing team to ago, is now. We're holiday all for can demand this mentioned, it to well years that. one as we it built while from for period. driving, capture The I five is that. planned So, to And at of we're team

Bill Shea

Yeah, Doug.

our mentioned the we've growth rate achieved QX. shift far, last holiday quarter and the the as the are by stated, there. offset our said, to not is growth at very we're But guidance every in growth a indicate, on second that quarter. holiday of the to the revenue our to of the the in they're with providing we mid-point challenges But demand. our size in you four the We were wholesale the as company second in some in of gifting, numbers the times and second see not the out of we unlike quarter the forecasting strong kind The retail But is forward XX% strong largest guidance the with third-party growth. QX reminder, that e-commerce anticipate our we As continue as carrying retailer indicates, for we declines top holiday second same with the expect range our fiscal bottom or of that last we year, e-commerce second channels. The worth an And and million quarter. really growth rates season. quarter year. to relevant, XX% that you QX labor, record quarter But sequential line a and have The business quarter. not through $XXX the and be looking as shippers quarter. with is That's internal basis

So, we're quarter. very a strong anticipating second

Doug Lane

you. Okay. helpful. very Thank That's

Bill Shea

Doug. you, Thank

Operator

Thank you.

is of next Northcoast from Please ahead. Tim Our Research. Vierengel question go

Tim Vierengel

you. Thank

million gift portion of one of wholesale baskets. gourmet if shifts wondering loss Thank great. between the help on segment. Just is I do clarify the gift was take you delivery expect And there and if Typically, $XX for you you. when there the the lot could partners and were quarter, any Any number be there first second your a the more would noise Bill similar between second food baskets in clarity a question quarter? of quick

Bill Shea

Yeah.

as XX So in million we wholesale was first indicated, down the quarter.

we and spring, in being of holiday was for in so conservative many The be as think of in wholesale kind insights into we big conversations the gift buying alluded I have decisions their to very guys their make height this baskets. really demand for where holiday the to in that all of pandemic season. were the the this some of going our to box prior kind

that. up And for so, make be and us was going to that channel e-commerce that for going to down, was

and September QX, it in impact in than that in through in million and this was slightly down more they be to We The that quarter. the QX. the the down going being will of down It's be down retail QX, through holiday November. September. because in the million XX both QX were will about of down in more X more significantly nature wholesale be So, wholesale season of runs September, of retail start and of than kind the saw wholesale than

Chris McCann

offset that we've declines. help talking been will then e-commerce offset strong Right. those the And by us that growth to with certainly about, being that

Bill Shea

Yeah. is built our Again, all this guidance. into

declines in growth to e-commerce XX% achieves, we the retail. And the wholesale over have, numbers. still XX% XX% So, that top growth offsets record again, line the and

Tim Vierengel

you. Thank

Operator

much. very you Thank

in queue. some call remarks. the We to I'd hand have like questions no the to And further closing management for the

Bill Shea

call. the everyone, you, thank and Chris, on you, Thank for joining us Great.

like brands you lineup different see very to we questions. if of any have this Let contact and us all-star I to wish us. to what hesitate know happy our you we'd Certainly, Please encourage to Halloween season. don't additional everybody visit season the season. Also, very have that you Especially, products I we're have great questions lineup and of about. for may fall for the we so look holiday that the and season we have. Thank follow-up to PMall just you excited mentioned holiday forward any this in a

Operator

conference Ladies concluded. for has Thank and today’s gentlemen, this call attending now presentation. you

lines. may You disconnect now your

1-800-FLOWERS.COM (FLWS) 1 Nov 202021 Q1 Earnings call transcript