1-800-FLOWERS.Com (NASDAQ: FLWS) reported Q2 EPS of $1.04, $0.07 better than the analyst estimate of $0.97. Revenue for the quarter came in at $571.3 million versus the consensus estimate of $557.04 million.

• Total revenues were $571.3 million, up 8.6 percent compared with $526.1 million in the prior year period, driven by strong growth in all three of the Company’s business segments.
• Net Income was $68.6 million, or EPS of $1.04 per diluted share, compared with Net Income of $70.7 million, or EPS of $1.06 per diluted share in the prior year period. Adjusted for a one-time benefit of $0.18 per diluted share associated with the “Tax Cuts and Jobs Act of 2017,” Adjusted Net Income in the prior year period was $58.5 million, or EPS of $0.88 per diluted share.
• Adjusted EBITDA1 was $103.1 million, compared with $94.5 million in the prior year period.
• Company increases its guidance for fiscal year 2019 revenues and earnings.

Chris McCann, CEO of 1-800-FLOWERS.COM, said, “We are pleased to report accelerated revenue growth and solid year-over-year increases in earnings and cash flows for our fiscal second quarter. These results were driven by strong holiday and everyday gifting demand, combined with excellent execution, across all three of our business segments.” McCann said that consolidated revenue growth of 8.6 percent during the quarter was driven, in large part, by the Company’s Harry & David business. “Customers who were looking to express themselves, connect and celebrate for the year-end holidays, as well as for everyday occasions, clearly responded to Harry & David’s “Share More” brand messaging and its continued focus on truly original product offerings. In addition, our increased investments in digital marketing programs for Harry & David contributed to total-company new customer growth of nearly twelve percent during the quarter while also enabling us to continue to deepen our relationships with existing customers.” McCann said strong growth in the Company’s Gourmet Food and Gift Baskets segment also benefited from enhanced operating performance in its Cheryl’s Cookies business as well as solid wholesale channel growth in gift baskets and The Popcorn Factory brand.

McCann noted that the strong results for the quarter also benefited from continued positive trends in its Consumer Floral and BloomNet businesses. “The investments we have made – and continue to make – in our floral business are helping us to accelerate new customer growth and increase total order volumes. As a result, the 1-800-Flowers.com brand is further expanding its market leading position and BloomNet continues to grow its market share versus the legacy wire service providers. These positive trends position us well for continued accelerated revenue growth in the second half of our fiscal year, which features the Valentine’s Day and Mother’s Day holidays as well as everyday occasions such as birthdays, anniversaries, sympathy and get well for which the 1-800-Flowers.com brand is the go-to destination for our customers,” he said.

GUIDANCE:

1-800-FLOWERS.Com sees FY2019 EPS of $0.44-$0.46, versus the consensus of $0.41.

• Consolidated revenue growth in a range of 7.0-to-8.0 percent compared with the prior year;
• EPS in a range of $0.44 - to - $0.46 per diluted share;
• Adjusted EBITDA in a range of $80.0 - to - $82.0 million.

For earnings history and earnings-related data on 1-800-FLOWERS.Com (FLWS) click here.