1-800-FLOWERS.COM, Inc. (FLWS) saw its loss widen to $15.77 million, or $0.24 a share for the quarter ended Oct. 02, 2016. In the previous year period, the company reported a loss of $4.48 million, or $0.07 a share. On the other hand, adjusted net loss for the quarter widened to $15.77 million, or $0.24 a share from a loss of $14.31 million or $0.22 a share, a year ago.
Revenue during the quarter grew 6.27 percent to $165.83 million from $156.04 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 43.05 percent. Operating margin for the quarter stood at negative 13.94 percent as compared to a negative 14.27 percent for the previous year period.
Operating loss for the quarter was $23.11 million, compared with an operating loss of $22.27 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $15.11 million compared to negative $13.47 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 9.11 percent for the quarter compared to negative 8.63 percent in the last year period.
Chris McCann, chief executive officer of 1-800-FLOWERS.COM, Inc., said, "Our first quarter results reflect a continuation of the positive trends we have been seeing across our business for some time. In Gourmet Food and Gift Baskets, revenue growth accelerated, driven primarily by double digit growth in our wholesale baskets business as well as in our Cheryl's and The Popcorn Factory brands. In addition, our Fannie May business recorded positive same store sales as well as solid ecommerce growth, reflecting the success of the initiatives we have implemented to enhance its performance." McCann noted that the Company"s floral business segments also continued to see positive trends during the quarter: "Our 1-800-Flowers brand continued its strong top and bottom-line growth trends, with revenues, gross margin and contribution margin all rising in what is a seasonally slow quarter."
For financial year 2017, 1-800-FLOWERS.COM, Inc. projects revenue to grow in the range of 4 percent to 5 percent. The company forecasts diluted earnings per share to be in the range of $0.05 to $0.10.
Operating cash flow remains negative
1-800-FLOWERS.COM, Inc. has spent $134.84 million cash to meet operating activities during the quarter as against cash outgo of $140.23 million in the last year period. The company has spent $4.70 million cash to meet investing activities during the quarter as against cash outgo of $6.22 million in the last year period.
Cash flow from financing activities was $118.47 million for the quarter, down 1.68 percent or $2.03 million, when compared with the last year period.
Cash and cash equivalents stood at $6.76 million as on Oct. 02, 2016, up 239.96 percent or $4.77 million from $1.99 million on Sep. 27, 2015.
Working capital declines
1-800-FLOWERS.COM, Inc. has witnessed a decline in the working capital over the last year. It stood at $26.69 million as at Oct. 02, 2016, down 11.25 percent or $3.38 million from $30.07 million on Sep. 27, 2015. Current ratio was at 1.11 as on Oct. 02, 2016, down from 1.13 on Sep. 27, 2015.
Cash conversion cycle (CCC) has decreased to 77 days for the quarter from 129 days for the last year period. Days sales outstanding went down to 17 days for the quarter compared with 21 days for the same period last year.
Days inventory outstanding has decreased to 92 days for the quarter compared with 145 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 37 for the same period last year.
Debt comes down
1-800-FLOWERS.COM, Inc. has recorded a decline in total debt over the last one year. It stood at $235.80 million as on Oct. 02, 2016, down 8.36 percent or $21.52 million from $257.32 million on Sep. 27, 2015. Total debt was 39.13 percent of total assets as on Oct. 02, 2016, compared with 42.52 percent on Sep. 27, 2015. Debt to equity ratio was at 1.04 as on Oct. 02, 2016, down from 1.28 as on Sep. 27, 2015.
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