Note 12 - Business Segments

6 Months Ended

Jan. 01, 2023

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:

• Consumer Floral & Gifts,

• BloomNet, 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, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Three Months Ended						Six Months Ended
	January 1, 2023			December 26, 2021			January 1, 2023			December 26, 2021
Net Revenues:	(in thousands)
Segment Net Revenues:
Consumer Floral & Gifts	$	277,049		$	315,083		$	439,229		$	496,312
BloomNet		32,852			37,930			66,219			68,764
Gourmet Foods & Gift Baskets		588,431			590,946			696,659			688,428
Corporate		72			69			116			114
Intercompany eliminations		(527	)		(984	)		(742	)		(1,201	)
Total net revenues	$	897,877		$	943,044		$	1,201,481		$	1,252,417
Operating Income:
Segment Contribution Margin:
Consumer Floral & Gifts	$	27,886		$	38,156		$	38,696		$	57,346
BloomNet		9,348			11,887			18,865			22,747
Gourmet Foods & Gift Baskets		123,503			110,502			104,793			102,829
Segment Contribution Margin Subtotal		160,737			160,545			162,354			182,922
Corporate (a)		(31,297	)		(32,228	)		(61,580	)		(63,959	)
Depreciation and amortization		(14,315	)		(12,588	)		(27,009	)		(23,558	)
Operating income	$	115,125		$	115,729		$	73,765		$	95,405

(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
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	January 1, 2023		December 26, 2021		January 1, 2023		December 26, 2021		January 1, 2023		December 26, 2021		January 1, 2023			December 26, 2021			January 1, 2023			December 26, 2021
Net revenues
E-commerce	$	275,081	$	312,820	$	-	$	-	$	515,329	$	514,702	$	-		$	-		$	790,410		$	827,522
Other		1,968		2,263		32,852		37,930		73,102		76,244		(455	)		(915	)		107,467			115,522
Total net revenues	$	277,049	$	315,083	$	32,852	$	37,930	$	588,431	$	590,946	$	(455	)	$	(915	)	$	897,877		$	943,044
Other revenues detail
Retail and other		1,968		2,263		-		-		4,313		4,591		-			-			6,281			6,854
Wholesale		-		-		12,054		14,584		68,789		71,653		-			-			80,843			86,237
BloomNet services		-		-		20,798		23,346		-		-		-			-			20,798			23,346
Corporate		-		-		-		-		-		-		72			69			72			69
Eliminations		-		-		-		-		-		-		(527	)		(984	)		(527	)		(984	)
Total other revenues	$	1,968		2,263	$	32,852	$	37,930	$	73,102	$	76,244	$	(455	)	$	(915	)	$	107,467			115,522

	Six Months Ended
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	January 1, 2023		December 26, 2021		January 1, 2023		December 26, 2021		January 1, 2023		December 26, 2021		January 1, 2023			December 26, 2021			January 1, 2023			December 26, 2021
Net revenues
E-commerce	$	435,463	$	492,106	$	-	$	-	$	593,869	$	598,787	$	-		$	-		$	1,029,332		$	1,090,893
Other		3,766		4,206		66,219		68,764		102,790		89,641		(626	)		(1,087	)		172,149			161,524
Total net revenues	$	439,229	$	496,312	$	66,219	$	68,764	$	696,659	$	688,428	$	(626	)	$	(1,087	)	$	1,201,481		$	1,252,417
Other revenues detail
Retail and other		3,766		4,206		-		-		6,221		6,428		-			-			9,987			10,634
Wholesale		-		-		25,675		24,568		96,569		83,213		-			-			122,244			107,781
BloomNet services		-		-		40,544		44,196		-		-		-			-			40,544			44,196
Corporate		-		-		-		-		-		-		116			114			116			114
Eliminations		-		-		-		-		-		-		(742	)		(1,201	)		(742	)		(1,201	)
Total other revenues	$	3,766		4,206	$	66,219	$	68,764	$	102,790	$	89,641	$	(626	)	$	(1,087	)	$	172,149			161,524