1-800-FLOWERS Selling Home and Children's Gifts Business
By Staff -- Gifts & Decorative Accessories, 8/27/2009 4:09:00 PM
Carle Place, NY – 1-800-FLOWERS.COM Inc. decided to divest its Home and Children's Gifts business
segment to focus on its core Floral and Gourmet Foods and Gift Baskets categories. The company is already treating its home and gift business results as discontinued in its recently released fiscal 2009 fourth quarter results and says it is actively engaged in a sale process. 1800Flowers anticipates completing the divestiture in fiscal 2010. Total revenues for the Home and Children's Gifts segment in fiscal 2009 were $143.7 million, compared with $180.2 million in the prior year. Gross profit margin was 46.9 percent, compared with 45.2 percent in the prior year, reflecting product sourcing initiatives and reduced promotional pricing. For the fourth quarter, the segment's total revenues were $24.9 million, down 24.2 percent compared with $32.9 million in the prior year period. Gross profit margin was 49.7 percent, compared with 46 percent in the prior year period. They downsized the segment prior to deciding to divest it.
Jim McCann, CEO of 1-800-FLOWERS.COM, said in a statement, "We made the strategic decision to divest our Home and Children's Gifts segment so that we can focus all of our efforts and investments on our key Floral and Gourmet Foods and Gift Baskets business categories which, we believe, better leverage our business platform and offer the greatest opportunity for top and bottom-line growth in the years ahead. As a result, we have classified the segment as a discontinued operation. Importantly, the Home & Children's Gifts segment's day-to-day business activities will remain unchanged while we work toward a potential sale."
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