Note 12 - Business Segments

9 Months Ended

Apr. 02, 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						Nine Months Ended
	April 2, 2023			March 27, 2022			April 2, 2023			March 27, 2022
Net Revenues:	(in thousands)
Segment Net Revenues:
Consumer Floral & Gifts	$	233,019		$	264,243		$	672,248		$	760,555
BloomNet		36,968			38,448			103,187			107,212
Gourmet Foods & Gift Baskets		147,863			167,402			844,522			855,830
Corporate		36			43			152			157
Intercompany eliminations		(320	)		(560	)		(1,062	)		(1,761	)
Total net revenues	$	417,566		$	469,576		$	1,619,047		$	1,721,993
Operating Income (Loss):
Segment Contribution Margin:
Consumer Floral & Gifts	$	26,136		$	20,523		$	64,832		$	77,869
BloomNet		10,982			9,783			29,847			32,530
Gourmet Foods & Gift Baskets		(78,480	)		(17,134	)		26,313			85,695
Segment Contribution Margin Subtotal		(41,362	)		13,172			120,992			196,094
Corporate (a)		(30,015	)		(26,735	)		(91,595	)		(90,694	)
Depreciation and amortization		(13,267	)		(12,693	)		(40,276	)		(36,251	)
Operating income (loss)	$	(84,644	)	$	(26,256	)	$	(10,879	)	$	69,149

(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
	April 2, 2023		March 27, 2022		April 2, 2023		March 27, 2022		April 2, 2023		March 27, 2022		April 2, 2023			March 27, 2022			April 2, 2023			March 27, 2022
Net revenues
E-commerce	$	230,403	$	261,707	$	-	$	-	$	127,398	$	148,070	$	-		$	-		$	357,801		$	409,777
Other		2,616		2,536		36,968		38,448		20,465		19,332		(284	)		(517	)		59,765			59,799
Total net revenues	$	233,019	$	264,243	$	36,968	$	38,448	$	147,863	$	167,402	$	(284	)	$	(517	)	$	417,566		$	469,576
Other revenues detail
Retail and other		2,616		2,536		-		-		1,686		1,656		-			-			4,302			4,192
Wholesale		-		-		14,695		15,322		18,779		17,676		-			-			33,474			32,998
BloomNet services		-		-		22,273		23,126		-		-		-			-			22,273			23,126
Corporate		-		-		-		-		-		-		36			43			36			43
Eliminations		-		-		-		-		-		-		(320	)		(560	)		(320	)		(560	)
Total other revenues	$	2,616	$	2,536	$	36,968	$	38,448	$	20,465	$	19,332	$	(284	)	$	(517	)	$	59,765		$	59,799

	Nine Months Ended
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	April 2, 2023		March 27, 2022		April 2, 2023		March 27, 2022		April 2, 2023		March 27, 2022		April 2, 2023			March 27, 2022			April 2, 2023			March 27, 2022
Net revenues
E-commerce	$	665,866	$	753,813	$	-	$	-	$	721,267	$	746,857	$	-		$	-		$	1,387,133		$	1,500,670
Other		6,382		6,742		103,187		107,212		123,255		108,973		(910	)		(1,604	)		231,914			221,323
Total net revenues	$	672,248	$	760,555	$	103,187	$	107,212	$	844,522	$	855,830	$	(910	)	$	(1,604	)	$	1,619,047		$	1,721,993
Other revenues detail
Retail and other		6,382		6,742		-		-		7,907		8,084		-			-			14,289			14,826
Wholesale		-		-		40,370		39,890		115,348		100,889		-			-			155,718			140,779
BloomNet services		-		-		62,817		67,322		-		-		-			-			62,817			67,322
Corporate		-		-		-		-		-		-		152			157			152			157
Eliminations		-		-		-		-		-		-		(1,062	)		(1,761	)		(1,062	)		(1,761	)
Total other revenues	$	6,382	$	6,742	$	103,187	$	107,212	$	123,255	$	108,973	$	(910	)	$	(1,604	)	$	231,914		$	221,323