1-800-FLOWERS.COM, Inc.

Good morning and welcome to the 1-800-FLOWERS.COM, Inc., First Quarter 2021 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Joe Petito, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead, sir.

Thank you, Chris. Good morning and thank you all for joining us today to discuss 1800Flowers.com's financial results for our fiscal 2021 first quarter. For those of you who have not received the copy of our press release issued earlier this morning, The release can be accessed at the investor relations section of our corporate website at www.1800flowersinc.com. Our call today will begin with brief formal remarks, and then we will open the call to your questions. Presenting today will be Chris McCann, CEO, and Bill Shea, CFO. Before we begin, I need to remind everyone that some of the statements we will make today may be 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 of different material from those expressed or implied in the applicable statements. For a detailed description of these risks and uncertainties, please refer to our press release issued this morning, as well as our SEC filings, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. In addition, this morning we will discuss certain supplemental financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the tables accompanying the company's press release this morning. The company expressly disclaims any intent or obligation to update any of the forward-looking statements made in today's call, any recordings of today's call, the press release issued earlier today, or any of its SEC filings, except as may be otherwise stated by the company. I'll now turn the call over to Chris McCann.

Thanks, gentlemen. Thank you to everyone who has joined our call this morning. As you can see, our results for the first quarter really demonstrate the benefits of our business platform, which has positioned us to deepen the relationships we have with our customers and to drive sustainable long-term growth. For the quarter, we achieved 51.5% revenue growth, Driven by 85% e-commerce growth. This reflects the momentum we have in our business as we continue to drive strong, profitable growth across our three business segments. In fact, Q1 represented the sixth consecutive quarter in which our three business segments, Gourmet Food and Gift Baskets, Consumer Floral and Gifts, and BloomNet, each recorded solid year-over-year growth. And we see strong momentum in our business continuance. Based on some of the key macro trends that we see today, trends that, quite frankly, have been accelerated dramatically by the current environment, condensing what may have taken five years into less than one year for sure. First, the tremendous shift of consumers to e-commerce shopping, where we are positioned as a leader with our all-star collection of brands. Second, the increase in nesting. As people are spending less time traveling and more time at home, everything is centered around the home. People are seeking to add more comfort and convenience to their new stay-in-place lifestyle. And third, the prevailing sentiments that have emerged from these challenging times. Specifically, people's need to connect and express themselves to the important people in their lives. With our vision to inspire more human expression, connection, and celebration, we are uniquely well-positioned to benefit from and build on these trends by leveraging our business platforms, which includes our all-star collection of brands, our advanced technology stack, our manufacturing, distribution, and logistics capabilities, and our marketing capabilities with our integrated and growing customer file. With our leadership positions in floral, gourmet foods, and our personalized products, we can solve for more of our customers' needs to connect with more of their recipients for more occasions, thus increasing lifetime value. Over the past several years, our platform has enabled us to execute well on our strategy to expand our product offerings, evolve our marketing to focus on engagement, accelerate our customer final growth, and enhance customer loyalty. And our results illustrate that we are reaping the benefits and the investments that we've made in these areas. For example, we expanded our product offerings organically by adding new product lines, such as our expanded collection of house plants and succulents from the 1-800-FLOWERS Plant Shop that have been wildly popular for us. Our Harry and David gourmet line, including Harry and David Wines, and the Popcorn Factory's Tinsworth Pop Line. Now we further broadened our product offerings with the acquisition of Shari's Berries last year and personalization more this year. We have enhanced and expanded our digital marketing capabilities and as always, we remain hyper-focused on delivering exemplary customer service. The combination of strategic investment, strong execution and focus on our customers has brought us to where we are today, a leader in our industry, driving e-commerce growth in our first quarter of more than 85%. As we enter the holiday season, we will continue to leverage our platform and drive our momentum. We expect that demand for our everyday gifting solutions will remain high, and we are gearing up to satisfy as much of that demand as we possibly can. Now, no doubt we'll face some challenges, as will virtually all retailers, as the third-party shipping companies are facing capacity constraints and qualified labor is not always at our preferred levels. We are working to proactively manage these issues and execute against our plan for strong growth. As Bill will discuss in a few minutes, Our outlook for Q2, which as you know is our seasonally largest quarter, is for record revenue and profits. Before I turn the call to Bill, allow me to take a moment to provide you with some cover on the integration of our latest acquisition, Personalization Mall. To put it succinctly, we could not be more pleased with the acquisition of PMALL and with the great progress that we are making in our integration process. PMALL offers a tremendous assortment of products that can be personalized. from glassware to picture frames to throw blankets. And we have a wonderful holiday assortment, which I encourage you to visit in Browns. In addition, PMOL is among the industry's broadest range of personalization technologies, including laser engraving, photo sublimation, as well as a dozen more capabilities. And with our highly automated process and capabilities, PMOL offers one of the industry's fastest turnaround times with orders often completed and shipped the same day as ordered. As you may have already noticed, we've integrated PMOL onto our multi-brand website and into our passport loyalty program. In terms of cross-brand merchandising, we've integrated PMOL into our co-branded holiday gift guide, including our holiday gift and seasons of sharing lookbooks. We're leveraging our customer file to introduce PMOL to millions of new and existing customers in our everyday and holiday season communications. And we've already begun to leverage our digital marketing teams for PMOL with content and creative development across a broad range of digital channels. As a result, we anticipate PMOL will be a strong top and bottom line contributor in the upcoming holiday season for sure and for our full fiscal year. One last point. I'd like to touch on another important area where we are seeing accelerated growth. In addition to our revenue growth, we continue to see accelerated growth in our customer files, as well as strong double-digit growth in membership in our passport program and multi-brand customers. As we have emphasized in the past, these are our best-performing customer cohorts in terms of purchase frequency, retention, and lifetime value. The continued strong growth in our customer files, along with the growth of our passport program and multi-brand customers, Thank you, Chris.