Total net revenues were up by $271.6m to $877.3m, compared with total revenues of $605.6m in the prior year period, the company announced in results for its Fiscal 2021 second quarter ended 27 December 2020.
Chris McCann, CEO of 1-800-FLOWERS.COM, said: “We are very pleased to report the highest quarterly revenue and profit in our company’s history. Our record top and bottom-line results represent the seventh consecutive quarter of strong revenue growth across our three business segments and reflects a continuation of the momentum that we have been building over the past several years.
“These results were primarily driven by strong, double-digit ecommerce growth across our gourmet food and gift basket brands, in our market-leading 1-800-Flowers.com floral business, and in our newest market-leading brand, PersonalizationMall.com.”
Second Quarter 2021 Financial Results
Total consolidated revenues increased 44.8%, or 271.2m, to $877.3m, compared with total consolidated revenues of $605.6m in the prior year period, driven by ecommerce growth of 59.7% including revenue contributions from PersonalizationMall.com (‘PMall’), which the company acquired in August 2020.
Excluding the contribution from PMall, total net revenues increased 24.7% and e-commerce net revenues increased 34.6% compared with the prior year period.
Gross profit margin for the quarter increased 100 basis points to 45.4%, compared with 44.4% in the prior year period. Operating expenses as a percent of total revenues was 28.6%, compared with 28.0% in the prior year period. Excluding the impacts of the company’s non-qualified deferred 401k compensation plan and one-time costs primarily associated with its acquisition of PMall, operating expenses, as a percentage of total revenues was 28.3% in the quarter.
The combination of these factors resulted in an increase of 48.4%, or $53.6m, in Adjusted EBITDA to $164.3m, compared with Adjusted EBITDA of $110.7m in the prior year period, the company reported.
Net income for the quarter increased 53.3%, or $39.5m, to $113.7m, or $1.71 per diluted share, compared with net income of $74.2m or $1.12 per diluted share in the prior year period. Adjusted net income for the quarter increased 54.1m, or $40.1m, to $114.2 million, or 41.72 per diluted share.
“The strong ecommerce growth, combined with excellent execution, enabled us to drive record results despite the significant headwinds we faced in the year-end holiday period, including increased labour and transportation costs as well as operating inefficiencies related to the ongoing pandemic,” said McCann.
“This is a testament to the incredible hard work and commitment of all our associates across the company to help our customers connect and express themselves in a very challenging environment.”
McCann said that while the company was aware of continuing uncertainty in the overall environment due to the COVID-19 pandemic, he believes it is well positioned to deliver solid results for the current fiscal third quarter and the full year.
“As we enter the second half of our fiscal year, we have built significant momentum across our business by leveraging our expanded product offering and our focused customer engagement to build relationships,” he said.