With Mother’s Day solidly in its pocket, 1-800-Flowers adjusted its sales projections upward Thursday (June 18) as the gift and flower eCommerce company saw record results through the first three quarters of the year combined with unexpectedly high eCommerce demand through the first 10 weeks of its current fiscal fourth quarter.
The company now predicts total consolidated revenue growth of 16 to 18 percent, up from a previous range of 8 to 9 percent, compared to 2019 including approximately 13 to 15 percent organic revenue growth combined with contributions from the Shari’s Berries brand, which the firm acquired in August 2019. Whether the company makes another acquisition could depend on its free cash flow for the year, which is now in a range of $75 million to $85 million, up from a previous range of $45 million to $50 million.
Said CEO Chris McCann in a statement: “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 ... 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.”
Despite the success to date, McCann anticipated some headwinds for the balance of the year. “We do not anticipate replicating the record top and bottom-line performance we are seeing in our fiscal 2020 fourth quarter,” he said. “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.”