Note 11 - Business Segments

6 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 – 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
	December 31, 2023			January 1, 2023			December 31, 2023			January 1, 2023
	(in thousands)
Net Revenues:
Segment Net Revenues:
Consumer Floral & Gifts	$	254,835		$	277,049		$	397,029		$	439,229
BloomNet		27,236			32,852			56,106			66,219
Gourmet Foods & Gift Baskets		539,963			588,431			638,072			696,659
Corporate		279			72			549			116
Intercompany eliminations		(259	)		(527	)		(652	)		(742	)
Total net revenues	$	822,054		$	897,877		$	1,091,104		$	1,201,481
Operating Income:
Segment Contribution Margin:
Consumer Floral & Gifts	$	10,593		$	27,886		$	19,419		$	38,696
BloomNet		9,088			9,348			18,475			18,865
Gourmet Foods & Gift Baskets		118,153			123,503			107,125			104,793
Segment Contribution Margin Subtotal		137,834			160,737			145,019			162,354
Corporate (a)		(32,432	)		(31,297	)		(64,000	)		(61,580	)
Depreciation and amortization		(14,152	)		(14,315	)		(27,346	)		(27,009	)
Operating income	$	91,250		$	115,125		$	53,673		$	73,765

(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
	December 31, 2023		January 1, 2023		December 31, 2023		January 1, 2023		December 31, 2023		January 1, 2023		December 31, 2023			January 1, 2023			December 31, 2023			January 1, 2023
Net revenues
E-commerce	$	252,845	$	275,081	$	-	$	-	$	485,561	$	515,329	$	-		$	-		$	738,406		$	790,410
Other		1,990		1,968		27,236		32,852		54,402		73,102		20			(455	)		83,648			107,467
Total net revenues	$	254,835	$	277,049	$	27,236	$	32,852	$	539,963	$	588,431	$	20		$	(455	)	$	822,054		$	897,877
Other revenues detail
Retail and other		1,990		1,968		-		-		4,296		4,313		-			-			6,286			6,281
Wholesale		-		-		8,706		12,054		50,106		68,789		-			-			58,812			80,843
BloomNet services		-		-		18,530		20,798		-		-		-			-			18,530			20,798
Corporate		-		-		-		-		-		-		279			72			279			72
Eliminations		-		-		-		-		-		-		(259	)		(527	)		(259	)		(527	)
Total other revenues	$	1,990	$	1,968	$	27,236	$	32,852	$	54,402	$	73,102	$	20		$	(455	)	$	83,648		$	107,467

	Six Months Ended
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	December 31, 2023		January 1, 2023		December 31, 2023		January 1, 2023		December 31, 2023		January 1, 2023		December 31, 2023			January 1, 2023			December 31, 2023			January 1, 2023
Net revenues
E-commerce	$	393,180	$	435,463	$	-	$	-	$	555,137	$	593,869	$	-		$	-		$	948,317		$	1,029,332
Other		3,849		3,766		56,106		66,219		82,935		102,790		(103	)		(626	)		142,787			172,149
Total net revenues	$	397,029	$	439,229	$	56,106	$	66,219	$	638,072	$	696,659	$	(103	)	$	(626	)	$	1,091,104		$	1,201,481
Other revenues detail
Retail and other		3,849		3,766		-		-		6,230		6,221		-			-			10,079			9,987
Wholesale		-		-		20,503		25,675		76,705		96,569		-			-			97,208			122,244
BloomNet services		-		-		35,603		40,544		-		-		-			-			35,603			40,544
Corporate		-		-		-		-		-		-		549			116			549			116
Eliminations		-		-		-		-		-		-		(652	)		(742	)		(652	)		(742	)
Total other revenues	$	3,849	$	3,766	$	56,106	$	66,219	$	82,935	$	102,790	$	(103	)	$	(626	)	$	142,787		$	172,149