1-800-FLOWERS.Com (NASDAQ: FLWS) reported Q2 EPS of $1.04, $0.04 worse than the analyst estimate of $1.08. Revenue for the quarter came in at $605.6 million versus the consensus estimate of $610.55 million.

• Total revenues were $605.6 million, up 6.0 percent compared with $571.3 million in the prior year period, driven by strong growth in all three of the Company’s business segments.
• Net Income was $74.2 million, or EPS of $1.12 per diluted share, compared with Net Income of $68.6 million, or EPS of $1.04 per diluted share in the prior year period.
• Adjusted EBITDA1 was $110.7 million, up 7.4 percent compared with $103.1 million in the prior year period.

McCann noted that the Company’s Gourmet Foods and Gift Baskets business segment represented more than three-quarters of total consolidated revenues for the period. Growth in this segment was driven primarily by the Company’s Harry & David brand combined with strong growth in the 1-800-Baskets wholesale gift baskets business and contributions from the Shari’s Berries brand, which was acquired in August 2019. “Harry & David continues to benefit from the digital transformation of its marketing programs as well as its expanded product offerings of unique, shareable gifts for both holiday and everyday occasions, which is enabling it to attract new customers while also deepening engagement with existing customers,” he said.

McCann said that the Company’s Consumer Floral business segment achieved strong results for the quarter with solid top-line growth and improved bottom-line contributions. “The 1-800-Flowers brand continued to extend its market leadership position, leveraging the investments we have made – and continue to make – in innovative, digital marketing programs and truly original merchandise designs. In BloomNet, the strong results for the quarter reflected our ability to leverage increased order volumes to drive sales of our expanded range of products and services. As a result, BloomNet also continued to grow its market share during the quarter,” he said.

“These results demonstrate that we are well positioned to expand our market leadership position in the floral space during the second half of our fiscal year, which features the key Valentine’s Day and Mother’s Day holidays, and to grow sales across our platform for everyday occasions such as birthdays, anniversaries, sympathy and get well as we become our customers’ go-to destination to help them express, connect and celebrate with all the important people in their lives,” said McCann.

COMPANY GUIDANCE

Based on its results through the first half of its fiscal year 2020 and its outlook for continued strong performance in the second half of the fiscal year, the Company is updating its guidance for the full fiscal year as follows:

• Reaffirming guidance for total consolidated revenue growth of 8-to-9 percent, compared with the prior year, including approximately 6-to-7 percent organic revenue growth combined with anticipated contributions from the acquisition of the Shari’s Berries brand;
• Increasing guidance for EPS growth to a range of 15-to-17 percent from a previous range of 8-to-10 percent;
• Increasing guidance for Adjusted EBITDA growth to a range of 13-to-15 percent from a previous range of 8-to-10 percent and;
• Increasing guidance for Free Cash Flow for the year to a range of $45-to-$50 million from a previous target of approximately $45 million.

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