JERICHO, N.Y.--(BUSINESS WIRE)--January 27, 2022--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading e-commerce provider of products and services designed to inspire more human expression, connection, and celebration, today reported results for its fiscal 2022 second quarter ended December 26, 2021.

Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “Our revenue growth of 7.5 percent in the quarter – on top of the 45 percent growth in last year’s fiscal second quarter – reflected continued growth across our three business segments, highlighted by growth of approximately ten percent in our Gourmet Foods and Gift Baskets segment, led by our Harry & David^® brand.” McCann noted that, in addition to representing a very challenging year-over-year comparison, the holiday period was characterized by several significant headwinds including limited availability and increased costs for seasonal labor, ongoing supply-chain disruptions that caused shortages of key components for some holiday products and the resurgence of COVID pandemic cases across the country. “The widely reported cost increases associated with these macro headwinds significantly exceeded our expectations during the quarter, impacting our margins and bottom-line results,” he said.

McCann said the Company will continue to invest in its operating platform, including initiatives to bring imported inventory in early and optimize outbound shipping methods as well as automating of its warehouse and distribution facilities to help mitigate the continuing cost headwinds. “Over the longer term, we anticipate these initiatives will enable us to improve our gross margins and drive enhanced bottom-line performance.”

McCann noted that during the second quarter the Company saw continued strong, year-over-year growth in its customer file and in its Celebrations Passport^® loyalty program, which helps drive increased purchase frequency, retention, and cross-category/cross-brand purchases. “We also saw double-digit growth in our best performing customer cohort – customers that buy from multiple product categories and multiple brands within a given year. We believe these positive trends will provide increased marketing leverage over the longer term, particularly as we continue to see a larger percentage of our total revenues coming from existing customers.”