1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to help customers express, connect and celebrate, today reported that it is raising revenue and earnings guidance for its fiscal 2020 full year based on solid results through the first three quarters of the year combined with significantly increased ecommerce demand through the first ten weeks of its current fiscal fourth quarter.
Chris McCann, CEO, 1-800-FLOWERS.COM, Inc., said, “As we continue to grapple with the challenges of the COVID-19 pandemic, our gratitude goes out to all those who have been working on the front lines helping our country battle this crisis. I would also like to thank all our associates across the Company who have worked tirelessly in this difficult environment to help our customers stay connected while remaining focused on keeping safety and health at the forefront of all we do. Throughout this period, we have seen customers turn to us in record numbers to express themselves, to connect with the important people in their lives, and to celebrate life’s many events. As we noted in our April 30 press release on our fiscal third quarter results, we saw consumer demand begin to accelerate in late March and continue through April, including a record Easter holiday period. This trend has continued through May, including a very strong Mother’s Day holiday, and into the first two weeks of June. For both holidays and everyday occasions, consumers are increasingly turning to our family of brands and broad product collections to help them connect and express themselves during this difficult period.”
McCann attributed the significant increase in the Company’s earnings guidance primarily to a combination of accelerated revenue growth, coupled with reduced marketing costs in its current fiscal fourth quarter. “With the very efficient marketing leverage we have in this current advertising environment we are able to more cost effectively engage with our customers. As a result, we are seeing increasing demand from existing customers as well as accelerated growth in new customers and increased membership in our Celebrations Passport® loyalty program.”
Regarding the Company’s outlook for its fiscal 2021 year, McCann said, “While we are encouraged by the strong growth we have achieved year to date, during fiscal 2021 we do not anticipate replicating the record top and bottom-line performance we are seeing in our fiscal 2020 fourth quarter. We face some headwinds going into the new fiscal year reflecting the impacts of the COVID-19 pandemic, including an uncertain consumer economy, increased operating costs and significantly reduced order volumes from wholesale customers for the calendar year-end holiday season.”
McCann added, “We are proud of the strong and highly leverageable business platform we have built – our Celebrations Ecosystem – which has enabled us to ramp up quickly to meet the accelerated demand we have seen through this recent period. As the country begins to reopen, we see a number of trends from which we are well-positioned to benefit, including the accelerated consumer shift to ecommerce for more of their everyday and holiday needs, reduced travel and more “home nesting,” and the prevailing sentiments around the need for people to stay connected, express themselves and to find ways to celebrate – sentiments at the core of our vision as a company.”
COMPANY GUIDANCE
The Company is raising its growth guidance for fiscal 2020 as follows:
- Total consolidated revenue growth of 16-to-18 percent, up from a previous range of 8-to-9 percent, compared with the prior year, including approximately 13-to-15 percent organic revenue growth combined with contributions from the Shari’s Berries brand, which the Company acquired in August 2019;
- Adjusted EPS1 growth in a range of 75-to-85 percent, up from a previous range of 15-to-17 percent, compared with the prior year;
- Adjusted EBITDA1 growth in a range of 50-to-55 percent, up from a previous range of 13-to-15 percent, compared with the prior year, and;
- Free Cash Flow for the year to be in a range of $75-to-$85 million, up from a previous range of $45-to-$50 million.
