What happened
Shares of 1-800-Flowers.com (FLWS 2.24%) surged 20% Thursday, following the release of the online gift retailer's fiscal third-quarter results.
So what
The company -- whose brands include Harry & David, Cheryl's Cookies, Moose Munch, and The Popcorn Factory, among others -- saw revenue rocket 70% to $474.2 million. The gains were driven by strong e-commerce growth during the coronavirus pandemic and the addition of PersonalizationMall.com, which 1-800-Flowers.com acquired in August.
"The strong results for the quarter represent a continuation of the momentum that we have been building over the past several years," CEO Chris McCann said in a press release. "In addition, the acceleration provided by COVID has resulted in profound shifts in consumer behavior that our massive database, strong brand portfolio, and leading-edge technology will turn into a new era of growth."
Image source: Getty Images.
Moreover, 1-800-Flowers.com's profitability improved as it expanded its revenue base. Its gross margin rose 40 basis points to 38.9%. Meanwhile, its operating expenses as a percent of revenue fell to 39% from 42.4% in the prior-year quarter. Together, this helped the company generate an adjusted net profit of $1.5 million, compared to a loss of $9 million in the year-ago period.
Now what
Management anticipates fiscal 2021 full-year revenue and earnings growth of roughly 40% and 80%, respectively, to approximately $2 billion and $1.78 per share.
Looking further ahead, McCann expects growth to remain strong in 2022. "Based on our expectations for the fourth quarter, combined with what we see going forward, we anticipate driving double-digit growth in our next fiscal year," he said.
