nasdaq: flws
DESCRIPTION
NASDAQ: FLWS. 3906. Safe-Harbor Statement. Special Note Regarding Forward-Looking Statements: - PowerPoint PPT PresentationTRANSCRIPT
NASDAQ: FLWS
3906
Safe-Harbor Statement
Special Note Regarding Forward-Looking Statements:
A number of statements contained in this presentation are forward-
looking within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements involve risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied in the applicable statements. For a detailed description of
these risk factors, please refer to the Company’s Securities and
Exchange Commission filings including the Company’s Annual Report
on form 10-K and quarterly reports on form 10Q. The Company
expressly disclaims any intent or obligation to update any of the
forward looking statements included in this presentation.
Mission Statement
1-800-FLOWERS.COM, Inc. will become the
leading provider of thoughtful gifts, helping
our customers connect with the important
people in their lives. We will continue to build
on the trusted relationships with our
customers by providing them with ease of
access, tasteful and appropriate gifts and
superior service.
Setting FLWS Apart
• A specialty-retail business model featuring:
– Leadership position in consumer floral category
– Growing B2B florist business opportunity
– Growing Food, Wine and Gift Basket business
– Two-and-a-half strong revenue quarters
• A unique collection of leveragable assets:
– Powerful “lead” brand and growing collection of gift brands
– Growing database of > 15 Million customers
– Hybrid fulfillment system with same-day, next-day, any-day
delivery capabilities
Your Florist of ChoiceSM
Customer Relationship Development Path
LongDistanceFlowers
FloristMany MoreLocal Floral
Gift Occasions
<$2B >$7B
Specialty Brands
The Popcorn Factory
Cheryl & Co.
1-800-Baskets
Ambrosia/ WTN
Plow & Hearth
HearthSong
Magic Cabin
>$80B
“Products and services forall of our customers’celebratory occasions”
(Addressable market size)
Shared-Services Platform
BRANDMERCHANDISING
Product
Development
Sourcing
Inventory
Packaging
Design
BRANDMARKETING
Advertising/ PR
Customer:
Development
Acquisition
Retention
Frequency
ITFulfillment
Service CentersFinance
LegalFacilities Mgmt
HR, PMO
Interactive MarketingBGS
…………………......
“Hybrid” Distribution System
“Basketnet” “Greenhouselink”
• Best value proposition
• Floral category brand
leader with largest
directable order volume
• Smaller, selective
network with highest
quality requirements
• Member Services– Florist directory– Credit card clearing– Floral selection guide
• Bloomnet Technologies– Bloomlink™ extraNet
communication system– 24X7 telephone answering– Website hosting– POS
• PurchaseNet™
Competitive Landscape: FTD and Teleflora= mature “duopoly”
Competitive Growth Opportunity Analysis
FLWS FTD Teleflora PRVDHarry &David
ConsumerFloral
B2B Florist
Food, Wine &
Gift Baskets
10%
$
15%
No Consumer
Brand
High SpendSlowing
LimitedNiche
NotApplicable
X
Anti-FloristModel
X
MatureDeclining
MatureSlowing
LowGPM%
Small BaseLow GPM%
LimitedOffering
No Traction
WeakOffering
No Growth
MatureSlow
Growing Revenues
$117
$385.3
$183
$444.2
$218
$497.2
$265
$565.6
$307
$604.0
$361
$670.7
$420
$765.0
$0
$100
$200
$300
$400
$500
$600
$700
$800
FY00 FY01 FY02 FY03 FY04 FY05 FY06
Online RevenuesTotal Revenues
($ millions)
(*analysts' consensus estimates)
**
FY08 Operating Targets
• Gross Profit Margin 44%-45%
• Sales & Marketing 27%-29%
• G&A + Technology 7%
• D&A 2%
• Operating Margin = 8%
Annual Free Cash Flow >$30M
Positive Financial Outlook
• Double-digit revenue growth
• Internet increasing as % of revenues
• Increasing gross profit margin
• Improving operating expense ratio
• Strong balance sheet – growing cash
• Organic and Acquisition Growth Opportunities
• Stock Repurchase Program
Positive Customer Trends• Cost Efficient Customer Acquisition
• > 3 million per yr. @ CAC = < $20.00
• Increasing Repeat Rates• ≈ 50% annually and growing
• Increasing % Coming To Us Online• Reduced order handling costs
• “e-Relationship” opportunity
• Increasing Gift Occasions• Growing “local” floral gift business
• Growing Specialty Brands gift purchases
