1-800-FLOWERS.COM Reports Strong December Finish to the Holiday Shopping Season.WESTBURY, N.Y. -- 1-800-FLOWERS.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FLWS FLWS Force Level Warfare Systems ) --Expects to Report Fiscal Second Quarter Revenues of $230 Million, Up Approximately 8 Percent, Driven by Online Revenue Growth of 18 Percent --Company's Home and Garden Gift Category Grew More Than 10 Percent in December, Reversing Its Recent Negative Sales Trend 1-800-FLOWERS.COM (NASDAQ: FLWS), a leading multi-channel retailer of thoughtful gifts for all occasions, today said it anticipates achieving total revenue of approximately $230 million in its recent fiscal second quarter ended December 26, 2004. This represents growth of 7.8 percent compared with revenues of $213.2 million reported in the prior year period. Online sales for the quarter are expected to have grown approximately 18 percent, while telephonic revenues are expected to be down slightly, compared with the prior year period, as more customers utilize the Company's online channels. The overall sales growth for the quarter was aided by increased marketing investments both on- and off-line. Based on the expected sales growth, offset by higher marketing spending, the Company anticipates reporting earnings for the fiscal second quarter below management's expectations, albeit slightly above prior year on a comparative, tax-adjusted basis. Jim McCann, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 1-800-FLOWERS.COM, said that the Company saw demand increase in December as customers continue to shop later and later in the holiday period. "Customer shopping patterns confirmed our marketing strategy, which included shifting a significant portion of our efforts - online advertising, off-line broadcast advertising and direct marketing programs - to later in the quarter. As a result, during December we achieved double-digit growth in several of our key holiday gift categories, including gourmet food gifts, gift baskets A gift basket, or fruit basket is typically a gift that is delivered to the recipient at their home or workplace. There are different varieties of gift baskets, some which have fruit only, some with dry/canned goods only (such as tea, crackers and jam) although the standard and children's gifts. "Importantly, during December we also achieved 11 percent growth in our home and garden gift category, reversing the negative sales trends we saw in fiscal 2004 and through the early part of this year. For the full quarter, we expect to report growth for the category of two percent. We are pleased with the progress we have made in this area and we will continue to implement enhancements to further reinvigorate re·in·vig·o·rate tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re growth during the second half of fiscal 2005 and beyond." The Company said that, during the holiday period, its Business Gift Services Group achieved strong results in terms of both new accounts and increased sales of the Company's expanded offering in gourmet foods and gift baskets. Regarding the Company's newest product extension into wine gifts, McCann said the Company was "very pleased to see our customers - both corporate and consumer - enthusiastically embrace our new offering of wine gift baskets during the quarter. We are very excited about the potential for wine gifts going forward and believe our recent acquisition in this area will provide an excellent platform to build a leading position in this growing gift category." McCann noted that the Company has "stepped up" its marketing investments, particularly in evolving areas including search and affiliate marketing Affiliate marketing is a method of promoting web businesses (merchants/advertisers) in which an affiliate (publisher) is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts. . The Company also increased its efforts in direct marketing and broadcast advertising programs. "We saw good returns from these efforts in December and we expect to build on this during the second half of our fiscal year. Our increased spending here reflects both our strategy to become more aggressive in terms of customer acquisition - positioning us for stronger growth over the long term - as well as a response to the increasingly competitive marketplace, particularly in our core floral gift category," he said. McCann added that the Company is well positioned - with its strong brand recognition and expanded gift offering - to profitably grow its business during the second half of fiscal 2005. "Unlike most specialty gift retailers, we have two strong quarters ahead of us including our current fiscal third quarter, with the Valentine's Day Valentine's Day: see Saint Valentine's Day. Valentine's Day Lovers' holiday celebrated on February 14, the feast day of St. Valentine, one of two 3rd-century Roman martyrs of the same name. St. and Easter holidays Easter holidays npl → Semana Santa sg , and our fiscal fourth quarter, which includes Passover, Professional Administrative Assistants' Week, Mother's Day and Father's Day Mother's Day and Father's Day Holidays. In the U.S. a nationwide observance of Mother's Day was suggested by Anna Jarvis of Grafton, W.Va., and in 1908 formal observances were held in churches in Grafton and Philadelphia. ." The Company plans to issue a press release on January 18, 2005, announcing full financial results for its fiscal 2005 second quarter. A conference call will be held on the same day at approximately 11:00 a.m. (ET). The conference call will be web cast live from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website. About 1-800-FLOWERS.COM(R) For more than 25 years, 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) has been the leading innovator in the floral industry Floral industry is one of the major industries in many developing and underdeveloped countries. Floriculture as an industry began in the late 1800s in England, where flowers were grown on a large scale on the vast estates. , taking the extra step to help people connect and express themselves quickly and easily with exquisite floral gifts crafted with care by renowned artisans and the nation's leading florists, as well as distinctive non-floral gifts appropriate for any occasion or sentiment. The Company provides gift solutions same day, any day, offering an unparalleled selection of flowers, plants, gourmet foods and confections, gift baskets and other impressive unique gifts. As always, satisfaction is guaranteed, and customer service is paramount with quick, convenient ordering options, fast and reliable delivery, and gift advisors always available. Customers can shop 1-800-FLOWERS.COM 24-hours a day, seven-days a week via the Internet (http://www.1800flowers.com); by calling 1-800-FLOWERS(R) (1-800-356-9377); or by visiting a Company-operated or franchised store. The 1-800-FLOWERS.COM family of brands also includes home decor and garden merchandise from Plow & Hearth(R) (1- 800-627-1712 or http://www.plowandhearth.com); premium popcorn and specialty treats from The Popcorn Factory(R) (1-800-541-2676 or http://www.thepopcornfactory.com); gourmet foods from GreatFood.com(R) (http://www.greatfood.com); children's gifts from HearthSong(R) (http://www.hearthsong.com) and Magic Cabin(R) (http://www.magiccabin.com) and wine gifts from The Wine Tasting Noun 1. wine tasting - a gathering of people to taste and compare different wines assemblage, gathering - a group of persons together in one place wine tasting n → degustación f de vinos Network (www.ambrosiawine.com and www.winetasting wine·tast·ing n. A gathering of people to taste and compare a number of wines. .com). Special Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : A number of statements contained in this press release, other than statements of historical fact, are forward-looking within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: the Company's ability to profitably grow its business during the second half of its fiscal year; its ability to integrate and profitably grow the businesses of its acquired companies; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to provide timely fulfillment of customer orders; its ability to cost effectively acquire and retain customers; its ability to compete against existing and new competitors; its ability to cost efficiently manage inventories and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company's products. For a more detailed description of these and other risk factors, please refer to the Company's SEC filings including the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this release, or in any of its SEC filings except, as may be otherwise stated by the Company. |
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