1 800 Flowers Com (FLWS) saw its loss widen to $11.13 million, or $0.17 a share for the quarter ended Apr. 02, 2017. In the previous year period, the company reported a loss of $9.13 million, or $0.14 a share. On the other hand, adjusted net loss for the quarter widened to $11.13 million, or $0.17 a share from a loss of $9.13 million or $0.14 a share, a year ago.
Revenue during the quarter went down marginally by 0.21 percent to $233.72 million from $234.21 million in the previous year period. Gross margin for the quarter contracted 126 basis points over the previous year period to 40.04 percent. Operating margin for the quarter stood at negative 6.97 percent as compared to a negative 5.65 percent for the previous year period.
Operating loss for the quarter was $16.28 million, compared with an operating loss of $13.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $7.79 million compared to negative $5.69 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 3.33 percent for the quarter compared to negative 2.43 percent in the last year period.
Chris McCann, chief executive officer of 1-800-FLOWERS.COM, Inc., said, "During the fiscal third quarter, we achieved strong performance in our Consumer Floral and BloomNet segments. Revenues for the 1-800-Flowers.com brand increased more than 10 percent and contribution margin increased more than 15 percent. BloomNet also achieved solid revenue growth, up 7 percent for the period, along with 6 percent growth in its bottom-line contribution. These results illustrate the leverage in our business model as well as our focus on efficient marketing and merchandising programs combined with truly original product offerings."
1 800 Flowers Com expects revenue to grow in the range of 3 percent to 4 percent for the financial year 2017.
Operating cash flow declines 1 800 Flowers Com has generated cash of $61.21 million from operating activities during the nine month period, down 20.53 percent or $15.81 million, when compared with the last year period.
The company has spent $18.75 million cash to meet investing activities during the nine month period as against cash outgo of $20.02 million in the last year period.
The company has spent $13.52 million cash to carry out financing activities during the nine month period as against cash outgo of $23.24 million in the last year period.
Cash and cash equivalents stood at $56.76 million as on Apr. 02, 2017, down 7.99 percent or $4.93 million from $61.70 million on Mar. 27, 2016.
Working capital increases sharply
1 800 Flowers Com has recorded an increase in the working capital over the last year. It stood at $132.96 million as at Apr. 02, 2017, up 109.28 percent or $69.43 million from $63.53 million on Mar. 27, 2016. Current ratio was at 2.12 as on Apr. 02, 2017, up from 1.46 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 27 days for the last year period. Days sales outstanding went down to 4 days for the quarter compared with 6 days for the same period last year.
Days inventory outstanding has decreased to 21 days for the quarter compared with 32 days for the previous year period. At the same time, days payable outstanding went down to 6 days for the quarter from 11 for the same period last year.
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