FLWS - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the 1-800-FLOWERS.COM, Inc. Full Year Q1 Conference Call. [Operator Instructions] Please note this event is being recorded. I would like to turn the conference over to Joseph Pititto. Please go ahead.

Joseph Pititto

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

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

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

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

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

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

Chris McCann

call Thank morning. and you our joining this thank to you, for everyone Joe

our very quarter. growth are year strong fiscal kickoff ‘XX our to in with first pleased We revenue

the steep year’s rates during of This the growth growth e-commerce one year-over-year building our compared strong of brands early X% years more the growth transforming we in with past we inspires over the on As that quarter quarter. from as most more this our represented fiscal first first reported – to was in size of our last to comparisons. and August e-commerce and in essentially reflects pandemic. customers have still ago demand, company, XX.X% in note we much to period back the surge the country our with year ‘XX and of of the quarter marketing that than top been celebrate. overall in first XX% drop than express, of several the illustrates was mentioned year challenging call, quarter collection the our stages This represents the the important into the specialty It’s revenue of connect as in growth doubled lockdown our we unique have platform that enables momentum combined

act August on year out the we anticipated, about. advantage quarter of to pent-up summer get warm country As to the this the started took people and their slowly somewhat had across and in July out weather as long desire first

gifting. growth expanded As culminating of of solid relevance everyday our product in and a gradually increased ramp result, we up recognition revenue growth and headed throughout This as the saw toward back-to-school offerings double-digit September. we demand for positive brands significantly season, our reflects month the trend

revenue well a programs, collections strong brand, additional growth with our the of brand, growth best-selling frequency duration in was growth growth PersonalizationMall, favorites. arrangements floral to In & driven including in saw quarter For the bundling subscription proving & are we segments, In we more our already new expansion new for double-digit offering, the Harry additional Thank including our be X-XXX-FLOWERS as our during than our and expanded that our collection. Floral customer the subscriptions. self-manage along Berries quarter new David a X,XXX by PersonalizationMall, continued along Consumer Gift self-service Wines. of with of encouragements double-digit that performance products our customers David personalized In as Sympathy. with the product broad their including to further Shari’s already the in portal you award-winning strong continued Harry floral new and and options, items, adding the allows in sports example, revenue licensed

year pandemic. travel collections and quarter, last throughout fiscal the gifts back-to-school, PersonalizationMall personalized Halloween, show weddings strong and being ‘XX. to in saw travel, reflecting growth after anticipate revenue the to strong We During rebound for those weddings, due down strong for a gifts growth

widely holiday the a in PersonalizationMall the head we reported to key the we on to stock supply towards meet is it’s from season, that prior the customers season. worth demand see to uniquely that items for for holiday growing noting strong personalization inventory As challenges chain. up position We able upcoming were our in

In PersonalizationMall’s addition, highly increase and facility fulfillment. production we distribution to automated expanded further

season our Another the launch gifting, efforts with ahead is capabilities area holiday stepped our where the corporate of new our we by where platform up have in powered of Hero we’ve SmartGift. further expanded

workplace. companies as rewards our to their their across to now measure We the track service for existing and providing Hero embedded look offering, their them with to success helps goals gifting new ways corporate clients in connected their country in gives and portal, efforts. in to and companies recommendations employees and recognition campaigns ability growth their hybrid that continue achieve an is provide a future the engagement platform gifting across strong The the our see stay corporate brands for as

in expanded anticipate gifting season. offering, With our corporate the innovative for product holiday we our business continued and platform strong Hero the growth

file. demand quarter, first revenue more while quarter. our in see who added the existing growth During customers strong see also continued represented than continuing we XX% new the XXX,XXX to customers strong to from our We during of customer

loyalty also and value. Passport frequency, the with Along This Passport our in growth growth of we the more than We solid helps, a Celebrations increase in multi-category, saw Celebrations customers, quarter. more the as new continues year-over-year drive purchase of during to Celebrations in growth which know, one program. also lifetime saw retention members, Passport new XX% you continued using increased quarter. strong in than multi-brand program of year-over-year XX% cohort be and during customers, the customer key drivers increased to best-performing our strong existing,

customers where engagement, and and are e-commerce In we customer terms not watch allow we learn of just to our shop. to engagement more in great continue see doing our to channels

XX prior our than During the nearly the million quarter, engagements, period we entire and increase year more XXXX. XX% over reached of an fiscal

social creating to demonstrations and a name events, recipes, content, videos few by We’re doing this cooking just more examples. helpful

play tips themselves people enhance valuable a gift. process when also This and can We’re providing how of a relationships. that better we is role the gifting to cement express sending

opportunity it and us we go you’ll into the our with is Our of to as do experiences and see to throughout weave to engage better customers, forward great more continue fiscal this year. our content take and this more

product business of and quarter, that over years these remarks well that the customers’ address to trends our includes the we’ve headwinds in impacting positive cognizant the fiscal we our moment. described, solutions just Regarding cover their unique offering With with the us lives. that tremendous second the said, I’ll and destination initiatives people I’ve as them positions built just are important retail connect, our along our our past several with for they Bill season, business in upcoming of to the combination in the express to landscape. ask holiday and his believe momentum which expanded need current our the platform overall in a we several with significant celebrate

are growth fiscal fiscal that the on quarter we for in to the the of full drive We year prior enable top the and in of revenue this second our growth year. growth achieve confident double-digit guidance us tremendous will that strong saw current

I’d really turn the I to X-XXX-FLOWERS before a Choice to family. from like moment to team the welcome over the take call to Now Vital Bill,

and on As our provider of wild-caught we the exceptional expanding great Choice, announced quality, and on-trend, in we illustrates business over strength family of using our focus our forward. to look Vital This seafood turn further have yesterday, premium, food products. trusted excited offerings its a going better-of-you to hundreds acquisition growth better-for-you other into Vital and are great Choice highly our accelerate brands to like the acquired integrating Bill. the call category. to We now forward gifting platform I’d of to of

Bill Shea

you, Chris. Thank

of Chris environment marketing growth the and this compared July pleased the achieved XX.X% increases repeating combined last out achieved As growth as top very worth that we expected, growth with other year quarter represent with first period rates XXXX. with we first in mentioned, are the soft quarter versus of the and It’s of versus activities fiscal we significantly revenue lows. year macro the start XX.X% August, prior that on higher played year in Essentially, was the and a X% demand this travel fiscal we the in reflecting ago, XXXX. quarter summer in year’s record with the

that. with we the consumer growth we we in fiscal said guidance post double-digit our As full pleased provided Labor demand the We expected, back very in Day, XXXX improved are organic we and achieved significantly August, September. year for

double-digit year-over-year first below cost marketing for and and year the other be due would full we would higher be rate line quarter to the for growth bottom down growth the revenue quarter that results Our rates anticipate increases.

the bottom and strength ahead of our the brands product for particularly and guidance quarter results line, offerings, of occasions. Our for the illustrating top expanded were everyday both

carried anticipate commodity the facing higher the a and bottom all saw marketing said, which of Looking are increased products costs. the combination is revenue along season, delays significantly availability we we we that with important headwinds by of and With costs demand vexing significant higher over going widespread ahead, in of growth cost significant limited landscape, and wear and transportation forward. move retail higher as encouraged we for October, and labor, performance into and in overall improved holiday we including components line rising finished September consumer several into shipping increase rates

facilities, our investments of mitigate our have season. facilities, offering, designed and key these our increases to during We with impact installation include including automation reduces advantage and storage our distribution product strategic alliance increases and across inventory, our us leverages brands expanded and These warehouse of throughput demand we price several to holiday seasonal that in and take issues the we significant along cold have e-commerce which anticipate operating labor. pre-building enable on made implemented in initiatives the the which of platform, strong

customers are drive to result, a connect well in their the holiday everyday lives, solid As our and and performance. the key and top occasions we help with and themselves bottom line express positioned people both important season

the $XXX.X from increased million revenues with year Now, consolidated highlights total the noted, breaking prior to have as $XXX.X our X% we compared down period. of some first quarter, million in

August was on driven consolidated acquired last we e-commerce for which PersonalizationMall, This XX.X% X.X%. from PersonalizationMall. year, was contribution demand, growth of total profit X by contributions was margin from quarter, the weeks X period for non-comparable the strong Gross increased the XX.X%, in compared to Excluding period. as of growth prior higher basis decline including revenue the compared a a This the to increased compared year points XXX XX.X% reflected marketing XX expenses prior period. basis total percent of Operating points year with the period. prior with year rates XX.X% the which

As million $X.X EBITDA was of and $XX.X compared in compared share year the adjusted loss million per $X.X $X.XX adjusted for $X.X the loss net quarter loss adjusted of or in factors, EBITDA of $XX.X for quarter $X.XX Net $X.XX prior and share per a or with prior the million per $X.X or with an year net $X.XX the per period. period. share share net adjusted a or loss was result was these million of million million loss

period, segment, highly increased basis segment brands, at everyday such million for XX.X% XXX for Berries points year strong in our increased $XX.X in Food Baskets results, and relevant recognition Gross this driven Gift of was X.X% increased Harry occasions the with prior by Gourmet was increased in with profit everyday to Cookies in our the and transportation. year Regarding Cheryl’s compared compared growth period. the the XX% illustrating customer as segment $XX.X revenues prior labor and quarter our for million The for occasions. reflecting David, Sherry’s & costs down margin as gifting demand

series going transportation labor of initiatives a Importantly, as well have costs increased strategies implemented already to help the increase as other price forward. and offset strategic we

period. compared result costs, an margin of of the and with a factors $XXX.X adjusted loss marketing for quarter million $XXX.X million increased the year million in loss year-over-year of Floral higher as $X.X in period. with as our and loss of a prior well As prior $X year segment, Gift total Consumer In Segment compared XX.X% million $X.X the was contribution to revenues these million a

X.X%. XXX from of year Gross basis from X revenues contributions to profit primarily Excluding compared XX.X% period, increased increased XX.X% the PersonalizationMall. points PersonalizationMall in prior with margin weeks reflecting the total non-comparable contribution

quarter. shipments wholesale as XX.X% orders from low-margin shipments million, goods order segment with from third-party companies. points hard in result, year This year reflected for hard floral PersonalizationMall. increased period. Profit with contribution floral compared third-party $XX.X incremental and contributions with of the period. costs, a marketing in as As period. margin increased to This with prior prior lower XXX volume were of the the primarily essentially companies the million online In a prior quarter the was year product compared offset $XX.X revenues well fewer million, margin This reflected reduced from the goods BloomNet, X.X% delays mix XX% basis $XX.X reflected in unchanged decline margin in compared by

margin result, year contribution with in million the $XX.X As increased X.X% period. $XX.X compared to a million segment prior

to first the supply pre-build sheet, to at to we and at Turning last a million, across inventory the period. million of team $X.X increase we prepare quarter. early, $XXX.X to end investment the reflects chain The the for and the balance holiday of position labor the seeing mitigate cash our was of our management on significant our with effort in was low landscape. inventory seasonally issues year’s conscious $XXX.X as first seasonal million quarter, are Inventory retail we invest of inventory, the end part

million debt and facility. term revolving $XXX.X credit borrowings had we in X debt, our of terms under In

compared EBITDA provided Regarding call we tax guidance, XXXX year. with our the effective will prior turn and year. fiscal August X% XX% free in we with is total improved the full by now which with includes the EPS flow EBITDA are the call growth revenue rate guidance higher reaffirming XXXX line XX% in Chris. to and to compared exceed a the of as for Adjusted X% year, cash I depreciation of prior growth to offset fiscal million. higher $XXX to back

Chris McCann

our express are our today. unique laser Thanks, includes expanded our This help Bill. our with achieved been and the that we themselves challenging that digital ever comparison. and more our with an all-star to we’ve reflects capabilities, the momentum very growing focus combined was for first the important are them technology quarter business against designed customers providing our distribution And solutions of ability brands, than of years. strong a file. to in sum of stay building connected we leverage expertise, our is and on in with stack, what past pleased several That our sentiments from to marketing This growth up, significant advanced our range manufacturing, that which our e-commerce customer course, family logistics stems platform,

unique have it becoming years, platform a e-commerce As the I celebrate. we our company, and bears significantly doubled inspires several and connect and transformed enables the customers mentioned of express, and earlier past size to our business over our repeating, that

are deliver growth to As forward. to strong positioned such, well continue going we

for increased significant the customer trends growth in behavior along this drive and growth factors, value. PersonalizationMall, consumers continued year in loyalty for continued our like strong a helping which shopping Vital continued offering, the trend and we based lifetime Passport of going file retention The including positive both guidance the is expansion on with customer growth our outlook years significant that is significant Shari’s of acquisitions Our in Berries our now organically frequency, Celebrations do increase product ahead backwards. program, see not Choice, strategic strong and through several the our and to online, and

as all that our the to culture that of the the across have a who a through continued hard team, proud continue associates our have of done extremely am core challenges environment. seen I and combination macro innovative thinking our and We’ve we company. work the company have addition, of to overcome in this In see become

relationship with range well our work customers offer of as and are by with customers engaging across them, robust true we ahead, community a the Looking to a we online deepen assortment. build the positioned to broad gifting communication channels our have most we

that We continue we shareholder drive our are long-term platform. of value the will to strength confident continue we leverage as to

I’d can your call Now the over turn operator that you. questions. to like the so to we back Thank take

Operator

Instructions] the first We go session. with will now Please Kupinski Markets. question [Operator begin The question-and-answer from is Michael NOBLE ahead. Capital

Michael Kupinski

Thank you and quarter. congratulations your on

questions. include So, Does just the Vital a of things couple other couple guidance housekeeping of and Choice? then a revenue quick

Bill Shea

We on does. basis, our about adjust revenue business. because guidance, of is a Vital Choice it of Michael, annual Vital Yes, $XX Choice. the an didn’t million size

its as growth point it we going to annual numbers. accelerate those double-digit but forward, expect integrate a obviously, revenues and at maybe to We growth

as we didn’t So, a result. change our guidance

Michael Kupinski

Okay. the you Just kind of give And just give Choice profitable quarter? then how how each performs can in sense sense performs? of of Is Vital it quarter? a of us a kind it us

Bill Shea

of Yes. its normally revenue quarter. holiday in About XX% the is

are X this quarter, impact into on quarter. pretty the so, minor a it month up We picking effectively

Michael Kupinski

Okay. of And supply so does affect any more the than then one others? the segments issues chain your

Bill Shea

issue wholesale Yes. business issues lot ocean freight. more about of e-commerce chain read on a our our – business, than primarily the affects you Supply the significant

there. ocean freight do a are companies from our We number Asia wholesale are, of as the susceptible but that issues to imports many and come not the in products from

overall a affects business, that you piece it So X% remember, that’s component about of if of our a revenue. maybe

are a supply it’s pain the With of regards issues. big chain some piece to So, business. feeling our said, we not that with

Chris McCann

than channel the said, e-commerce you Bill, as But channels. mostly wholesale the in in more

Michael Kupinski

rates which U.S., you drop affecting then into are affect Are marketing turn in a forth. hearing of – And seeing of economies advertising the you starting as is the to in in that kind begin chain larger marketing you little issues to I it. advertising. markets supply this Got the quarter? am Are see and to year-over-year bit so starting know I up head is

Chris McCann

Michael. seen not We have that yet,

pointed As this out, at as don’t headwinds look that returned we marketing faced we the in We year. to had rates normal. quarters you just past same the face

see we that a optimistic seen bit, but We’re point. little drop have this rates to start marketing we at not that

Michael Kupinski

consumers that has just very periods you inflation price the this historically good in a things I of products kind elasticity raise seen you’ve of And that. and is prices think that select different is things terms on sense give Can was How company you’ve the is your than that? the do how during to reacting? increases and like you times some consumer receptive been in had past? the wondering, that price to a been us the of like the little just of on

Chris McCann

Yes.

favorably been we price in At the at out, looking out respond we’ve doing can you increases remarks, we’ve strategically, certainly where seeing taking we’re as the so we’ve past. Bill to So we’re his point that pointed I very the respond formal going as appropriately opportunities think price increases point, this done taking, or that taken. in consumers been And forward. we’ve and effectively

market early as press see general we’re also we also and what macro that the order the and in step community. are we coming. message That’s there as price helping well the to – to the in general as think seeing is I seeing a increases by consumer start being shaped the up consumer that is

Bill Shea

ability. Yes, have Michael, we the

pricing. We have dynamic

back demand. business comment, of September it we October. July what pricing saw really little demand not a macro the back started if call, growth consumer expected a when and back as to and and our post everyone be. at did impacting kids demand we in saw and of and in So guided then to August That’s school, impact month and in to the went adjust consumer a We that – We right? look to conversion pricing, nice into some kind softer expected strategic that’s we ability back in that’s in saw how we implement up, was we softer, it continued what need uptick do July we didn’t it time a August. we Day Labor a double-digit went to we as adjust and the at work, the have But August

Michael Kupinski

much. Thank Thanks. Got questions. it. you so all Appreciate the

Chris McCann

you, Thank Thanks. Michael.

Operator

The ahead. Kurnos Benchmark The next Please question go is with Company. from Dan

Dan Kurnos

morning. Great, messier, of abated marketing. and Chris, as if good guess Mike’s supply some the maybe just given of thanks. kind I Obviously, on anything. think Yes, funnel. and haven’t issues comments the gotten we competing chain advertising Performance pressures about down has

with still guys had seeing guys pretty sort with interesting been you You of strategy. And go-to-market the elevated growth. flexible even your rate, strong is thing are

Is So moat holiday years past of – throughout thinking maybe period? two-part of the to you is, into any fruits growth it And but are inefficiencies channels into are which the your a reallocation let you to couple to sort different question, year? just going of as course are really seeing going starting maybe thoughts maybe the and now. ‘XX the spend we money of channel how the here a since taking building the here, about some two, there of more spent obviously, flow of of of one, think is of the that lot kind labor there over just through Or kind share you’re gone? here

Chris McCann

you, Thank Dan.

to spend. on look we the really channel different your first of at As at how look part we things your question

digital very as on dynamic foremost, up advertising dial as advertising even channels, down. the we’re we dial the point, and capabilities the and question, in the and have we’re much and out our your up flexibility, is on seeing we you First have our for spend good pricing spend really most Bill the in and part, as pointed same move good so back of discussed can effectiveness we

we’re where more whether markets connected to look we brands upper we’re TV, now. seeing it TV, think opportunities I right do those linear TV, good our be to especially in – more lead starting funnel continue at

that where it as broadening advantage our really then get be the holiday, see we we efficiencies the becomes and of into And to take funnel the more and kind lower flexible the can market. that’s in you closer So capabilities. of really

business. on we see to opportunity grow to the your moat, the the to point continue So building

expect that holiday as So be promotional. – or we become think even I less things to season, it this

mode So that in But right provides we’re growth now. us some a opportunities as well.

we’re see file. that can where we grow how can So looking to to and our continue customer we mode expand

out this of time, And at past revenue same people. we came XX% my our file existing multi-category pointed from I when from in customers remarks multi-brand the Passport with metrics As our our our XXX,XXX grew still good quarter customer from customers, metrics customers. customers, by good

lean continuing we’re that. So to into

Dan Kurnos

just it. of much is And How growth I growth just percent floral a trying kind have that consumer last of maybe kind did like free something much of, Choice product that growth wrong. expansion elevated continue Or maintain so in do to – XX% need becomes lever driving wrong on here? substantial you how kind me that Got maybe X% Bill, to like of more and at to I’m of things my in the where from expansion to Vital in that. to rates tell of and Passport? momentum product But in continue of the think that of if you’re seeing? kind exclude the to we follow-up sort the that know, September I And is growth you investment periods, at level better marketing understand guess both much just the same math do I of had Do have driven? quarter, lines the being you feel risk know, marketing of tremendous don’t don’t of How momentum still I year, is some, the PMall you feel underlying still I that of here, off or just and

Chris McCann

don’t you. I correct going Bill to is think

your our overall, but and up in momentum it been is several consumer really is and businesses accurate. been the map just not leveraging the the to But think I about been platform. think the your we’ve we’ve in building it really I is building floral fairly for that momentum question, as speaking years

that referenced. leveraged expansion is that when look will drive Vital product innate the to expansions, So growth how this we and talk our Shari’s similar. some really product Choice and Berries different of you platform be about momentum you helping at

our product fit. that a to nice its the line, Gourmet David catalog that in bring platform, line accelerate will We such which with capabilities look product bring onto complementary Harry growth is &

had of base it’s momentum. we’ve So the expansion passport product working that customer It’s built that us kind the together over we’ve to numbers, that up time. everything give

Dan Kurnos

Fair go ahead. enough. Yes,

Bill Shea

and Just about with X consumer us highlighted over a year’s overall flow which top remarks both over growth, the numbers, formal we growth growth it overall, in got on X% XX% last your XX% on years the consumer the on over well over floral flow growth X ago, year years growth numbers very consumer and XX%, ago. similar organic brand XX% last X% in over us category, is X-XXX-FLOWERS over of bringing

Dan Kurnos

line an it’s this upside. market No, Yes. the in to unusual story

be for should guys you So all Thanks appreciate that. commended for the color. I it.

Chris McCann

Thank you, Dan.

Operator

Davidson. Please The next question with go is from Weiser D.A. ahead. Linda Bolton

Linda Bolton Weiser

is Hi, anything with terms of there in or you comment all supply? Are flower of supply any can there? issues chain just unusual on at availability you. so thank seeing pricing Yes, you

Chris McCann

really last was mostly I have challenges side been reported wouldn’t the unusual, flower freight of the say very spring just as There Linda. is availability. in

we’re is every in we’ve some inventory good But seeing So We that. were coming go position as that got we mitigated under control. forward into challenges this like just We’ve small sector. in holiday there season.

Linda Bolton Weiser

Okay. did the in increase number increase then I the Great. quarter? but And maybe the year-over-year give you actually the Passport members it, of missed in

Chris McCann

in what’s you we existing, new remarks did out rates. is out And basis, at pointed customers, if important No, the and grow in my but would continuing to saw utilizing I at Passport that that quarterly not say a double-digit increase both a QX, we we’re look Passport really program. on break XX% XX%,

traction that That’s our everyday good shows the sales. really So in metric. that’s a is Passport gaining

Linda Bolton Weiser

it of multi-brand the be Okay. in platform? can the And on to in much the going will able Like, to you holiday I Choice, how make season? integrated mean, get progress time Vital is terms be for by how then it integrated completely holidays? that you on

Chris McCann

thing that acquisition this with you’ve At into on there. question plan us we won’t move rush we – for an do we the first do thanks existing the And seen it. don’t And season, integration look point we business. in Linda on the at things holiday when in is Yes. mess and the time, the as as that past,

what So of on line. preholiday our & you’ll addition see to starting from to extent And database do customer David you’ll very integration the in is a within some Harry about focused the see merchandising point us top-selling point from platform that But merchandise an exposure, limited do products the really and that’s etcetera. Gourmet view.

Linda Bolton Weiser

just And longer Okay. then term. I the a had about question

of hit EBITDA target margin it. a and you’ve a XX% had for years, You several

been You’ve that. successful in

over So top EBITDA a a you’re of be some there you seeing margin this Or story can of XX% do line few more with more level? think beyond of going expansion kind margin? are EBITDA forward, growth the years, flattish next you that

Bill Shea

think on Yes, term, margin, purchases, our some EBITDA it business. base. bigger becomes come revenue as Passport on gross Linda, the bigger time do existing be OpEx on be see is whether from our side a longer the of of there the over Thus, I will the become leveraging there component a our margin more the even to that line revenue, customer component Over we the ability or improve as line. multi-category will marketing

over there do time, So the expansion be [Technical in will Difficulty] an think we

Chris McCann

from said, our platform, well building the we’re benefits Bill we the capabilities marketing that’s database customer that operations on as the we’ve as get side, as etcetera. And side into platform as overall the automation the built, both

you’ll that future. returns the So the and more better build in see the invest we platform,

Linda Bolton Weiser

quarter, second estimates, growth, then, expectation if mean, quarter. growth big the finally, growth with for an And for revenue there you Okay. double-digit for holiday in I your I Great. the at just year, look the Street double-digit revenue think is guidance

So you’re kind ballpark Is seeing possible you’re what the trends holiday that expecting that’s the are the range you with seeing that of now? quarter? of for

Bill Shea

Yes, with Linda, level guidance largest below XX% by the remainder double-digit growth to The the with double-digit have We our second QX margin. we achieve at in be QX. by quarter in certainly expect year, and of significant the do year, were that quarter. we reiterating where growth to the our XX% of for a to being

Linda Bolton Weiser

luck and so good you Thank Great. Okay. everything. much with

Chris McCann

Linda. you, Thank Thank you.

Linda Bolton Weiser

Chris. luck, Good

Operator

is with go Craig-Hallum. question Alex Fuhrman from ahead. next Please The

Alex Fuhrman

and my supply supply at that Great. you for you good that that your the about? it like But you’re any Thank handle look sounds obstacles much really very with reiterating as on full most ahead big picture? guys being the really inputs having construction of things orders overseas delays, the there or risking your And a about you’re that like have shipping chain, the you towers demand year. it are you fresh outbound any given areas question. guidance to for and chain, just headwinds products Obviously, the labor concerned transit. bit baskets from just some there Or concerns set pay fulfill facing the meet Are holiday? for are in Are a the little and critical what for and shipping? more to soiling guess I able is taking gift are a a your to matter perhaps of of

Bill Shea

the news. of Certainly, days. gets less With when than the the have there, it we talk business wholesale than It really factors don’t there is much part susceptible all and and the supply of as freight, there ocean impact to right? chain, a e-commerce. we does it over mouthful. Alex, we’re it’s these chain of of on freight. a is e-commerce. companies more is other significant There trucking news availability a import And from items outbound many susceptible lot impact it, are ocean amount side is you freight doesn’t our But about Asia. ocean said, to of freight Luckily, lot that a supply that’s

it’s is a alliance also on seasonal for of to be labor, able of the investing wide category. our wanted why We of years some challenges. we’ve to get in So ahead a but number automation. lessen been This

a on effort us the saw a conscious in some supply comp up address sheet ago. already on year part with balance is own bring PersonalizationMall over we position You our to issues ago a that a right? comp, inventory were in and the our management’s That to was year a We a year that’s inventory than to And ago, right? to million $XX of early better chain. put

and certainly head as important at we the we’re good we why So pretty we’re Chris and up think confident that there in reiterated will night. there us and X headwinds position of into keep guidance. a ahead months are I But out the

Alex Fuhrman

That’s Bill. terrific. Thanks,

Operator

Research. ahead. is with go from Doug The Lane Please next Lane question

Doug Lane

Yes. Hi, morning, good everybody.

were the holiday remember about the right, talk quarter. year If Just there ago the in quarter, quarter? December constraints I capacity

on we are where done demand fulfilled to maybe some alleviate So we those requests that quarter were capacity What free issues? have last them to this quarter. up

Chris McCann

in of constraints last inventory side We as dealing some more we couple Bill, And are the you than year, to chime a is capacity capabilities. on of I’ll were that things. looked well. the capacity There pure ask with Doug. Sure,

looking the So out, we’ve that as that addressed Bill in. and increased we’re pointed mitigate inventory to position with

to in throughput. capabilities into facilities increase PersonalizationMall some mentioned the I of distribution to automation to new we addition added there. into, we’ve for equipment fulfillment that, our increased example, some In our built of

that additional just brought inventory new items In X,XXX out minute that PersonalizationMall. addition, as ago, we new PersonalizationMall, we’ve Bill pointed in – items a the over introduced at

things those of issues. you most address to Bill, really anything those So done of? we’ve the are think that else

Bill Shea

that some into do get wholesale as demand going little consumer bit from a gone about a Chris to position a best that inventory about the to orders of lot things wholesale the QX. obviously, what fluid, standpoint be standpoint, just typically spoke Yes. would going But from to standpoint, is also an did tough a QX on us to from is be on QX from QX. we of we because into believe But from a have a an into have BloomNet. could of why put this – I we and head with orders. from chain that’s, supply it we an It’s in you that come of out availability. product, some a labor We we environment, spoke advantage that strong the of very in chain shift automation QX a take are mean, both We right? supply challenges again, benefit operational in

Doug Lane

acquisition, you. while digits. we’re there double been helpful, to as the That’s the there, And It’s been Okay. I the thank so as XX%. something we’re on growth going on lose more than numbers far has PersonalizationMall, can we visibility but tell, anniversaried

I confirm on seeing what to and rates kind that want don’t of Difficulty]. number So if you’re kind [Technical of know you the growth top

Chris McCann

as you very Doug, perform continues well. out, PersonalizationMall, pointed to So

were to the increase product continue position capabilities new there. We there, introductions

comfortable So this we’re mentioned. very with continued growth you rate, as

Doug Lane

we And fully [Technical do the integration? or integrated mean Difficulty] it stand I there? Is where

Chris McCann

platforms, quarter things done this that But There recently was their we of anyway, of one the technology is the integration integrating catalog. some past still to there really or big did be on etcetera. product

– is integrated catalog product information everything is So management whole the product system. with our

So the seeing we’re other across brands what PersonalizationMall now cross-merchandising our of product. done more is much being

the So that’s of significant and plan. the most one integration in achievements recent

Operator

Vierengel The go Research. Northcoast next question Please Timothy from is with ahead.

Timothy Vierengel

if market the about targeting maybe And category? for category, like. target familiar good kind provide Thank that Thanks. was new a theirs. with on us. Doug just not you I a of of was Alex and size more some better-for-you you’re it don’t And your this Choice. can if vertical maybe already you color you what guys bit is that could It you on If acquisition. small Vital looks of it better color I product you you? stockyards you after I’m question I could offering. kind is morning. Only you some size like got it? guys know. why the one better is wondering and have on for kind from vertical, for if very What kind good know little tuck-in wondering I of

Chris McCann

question, Thanks for Tim. that

look it’s we etcetera. David, trend that of demographic. cookies, vegetables organic hot continues category line category, to been it product now organic in and or better-for-you been at while the some a or some that’s be we’ve be category Cheryl’s We’ve a the some As already & whether food from we’ve had on from Harry especially a had. that a with capabilities for after gluten-free cookies, And younger trend, sugar-free organic

my saw we it’s product is head, than when brand well off Choice, really think can the numbers category. continue of and it’s So and better-for-you more to opportunity for a and category just again, grow it’s for which, great product into grow top it’s the that a positions us we our footprint product positioned, to there. a just don’t but for the position our very with but into us, have fantastic. expansion and And in to expand large the Vital I the we us

see the if see you’ve the excited promote about And chance, a flavor of coming and the That’s pretty is aspect us Choice look expand you’ll So they that and whole the you had of seafood sustainably side, brand we farmed – conscious that. you wildcard, positioning so a if healthier as what over we’re branding Vital better-for-you, take do shellfish. at really the how Vital Choice years.

Timothy Vierengel

something quick issues and expand I appreciate later. of last different, year. this I of No, supply The we that on can other color maybe One question. chain kind think, wholly than year,

year, which XX% all more have, e-commerce us was I think, your gave guys demand. of Thank you. last my rate you feel of it fulfillment is you due From normal to get you’re number fill back orders. year, this able fulfillment notes, I metric orders last for think the if to normal is you was a I or to were holiday? I going whatever the was And XXX% a that I comfortable you that fulfillment what get. wondering to think

Bill Shea

year Yes, in Tim, demand of I as we table, the the on that FedEx issues. availability December, mean as we the left inventory capacity last did well of discuss combination

with have fulfill do very FedEx year. confident throughout We hard worked have. able that We the to feel will demand the FedEx that be we

this some operational in shape, issues in. strategies to a is implemented talk we’re top of supply be about labor with the chain good us environment heard we’ve to the We but offset that. and You’ve think

going fulfill every our order we’re to do that we to So best get. can

Timothy Vierengel

Thanks, Alright. good guys, and luck.

Chris McCann

Tim. Thanks,

Operator

any remark. the like sort back over to our Chris question-and-answer I conference would turn session. for concludes This McCann to

Chris McCann

everyone just and thank to I’d your comments your this questions. for morning. joining like I appreciate

you Thank we’d any urge please to you’ll to follow-up very our to guarantee all I have for much. you hesitate And you additional don’t If Vital be engage. try questions, line Choice. of new I product love glad it.

Operator

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

now You may disconnect.

1-800-FLOWERS.COM (FLWS) 29 Oct 212022 Q1 Earnings call transcript