Note 12 - Business Segments

9 Months Ended

Mar. 29, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

12

– Business Segments

The Company’s management reviews the results of its operations by the following

three

business segments:

•     

1

-

800

-Flowers.com Consumer Floral,

•     BloomNet Wire Service, and

•     Gourmet Foods & Gift Baskets

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does

not

include the effect of corporate overhead (see (a) below), nor does it include depreciation and amortization, other (income) expense, net and income taxes, or stock-based compensation. Assets and liabilities are reviewed at the consolidated level by management and

not

accounted for by segment.

	Three Months Ended						Nine Months Ended
	March 29, 2020			March 3 1 , 201 9			March 29, 2020			March 3 1 , 201 9
Net Revenues:	(in thousands)
Segment Net Revenues:
1-800-Flowers.com Consumer Floral	$	152,620		$	144,821		$	359,104		$	338,003
BloomNet Wire Service		30,414			28,185			81,576			75,613
Gourmet Foods & Gift Baskets		95,906			75,445			631,705			575,966
Corporate		112			263			472			845
Intercompany eliminations		(276	)		(301	)		(1,176	)		(1,202	)
Total net revenues	$	278,776		$	248,413		$	1,071,681		$	989,225
Operating Income (Loss) :
Segment Contribution Margin:
1-800-Flowers.com Consumer Floral	$	15,439		$	15,364		$	34,853		$	32,667
BloomNet Wire Service		10,025			9,480			27,516			25,375
Gourmet Foods & Gift Baskets		(6,275	)		(7,202	)		100,512			89,191
Segment Contribution Margin Subtotal		19,189			17,642			162,881			147,233
Corporate (a)		(22,274	)		(25,243	)		(71,583	)		(67,303	)
Depreciation and amortization		(7,803	)		(7,028	)		(23,268	)		(22,840	)
Operating income (loss)	$	(10,888	)	$	(14,629	)	$	68,030		$	57,090

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are

not

directly allocable to a specific segment.

The following tables represent a disaggregation of revenue from contracts with customers, by channel: 

	Three Months Ended									Three Months Ended
	March 29, 2020									March 3 1 , 201 9
	Consumer Floral		BloomNet Wire Service		Gourmet Foods & Gift Baskets		Consolidated			Consumer Floral		BloomNet Wire Service		Gourmet Foods & Gift Baskets		Consolidated
	(in thousands)
Net revenues
E-commerce	$	150,491	$	-	$	81,360	$	231,851		$	142,552	$	-	$	61,810	$	204,362
Retail		1,166		-		5,030		6,196			1,189		-		5,727		6,916
Wholesale		-		10,801		9,516		20,317			-		9,321		7,908		17,229
BloomNet services		-		19,613		-		19,613			-		18,864		-		18,864
Other		963		-		-		963			1,080		-		-		1,080
Corporate		-		-		-		112			-		-		-		263
Eliminations		-		-		-		(276	)		-		-		-		(301	)
Net revenues	$	152,620	$	30,414	$	95,906	$	278,776		$	144,821	$	28,185	$	75,445	$	248,413

	Nine months ended									Nine months ended
	March 29, 2020									March 3 1 , 201 9
	Consumer Floral		BloomNet Wire Service		Gourmet Foods & Gift Baskets		Consolidated			Consumer Floral		BloomNet Wire Service		Gourmet Foods & Gift Baskets		Consolidated
	(in thousands)
Net revenues
E-commerce	$	353,436	$	-	$	494,549	$	847,985		$	332,302	$	-	$	448,581	$	780,883
Retail		3,187		-		35,640		38,827			3,113		-		38,477		41,590
Wholesale		-		26,819		101,516		128,335			-		23,247		88,908		112,155
BloomNet services		-		54,757		-		54,757			-		52,366		-		52,366
Other		2,481		-		-		2,481			2,588		-		-		2,588
Corporate		-		-		-		472			-		-		-		845
Eliminations		-		-		-		(1,176	)		-		-		-		(1,202	)
Net revenues	$	359,104	$	81,576	$	631,705	$	1,071,681		$	338,003	$	75,613	$	575,966	$	989,225