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FLWS IR PowerPoint

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  1. 1. The Gifting Destination for All Your Celebratory Occasions NASDAQ: FLWS IR..3.13.15
  2. 2. Setting FLWS Investment Apart • 1-800-FLOWERS.COM: Category Leader, Strong Brand Equity • Growing Market Share in $16B Gourmet Food and Gift Baskets • BloomNet Wire Service: Increasing Market Penetration & Share • Proven Ability to Leverage Business Platform to Reduce OPEX • Strong Balance Sheet: Generating Cash • Early Adopter in Fast Growing Social/ Mobile Commerce 2
  3. 3. Positive Trends: Growing Top and Bottom Line •Revenue and EBITDA CAGR since FY2010 of 4% and 10%, respectively • 1-800-FLOWERS.COM: growing at faster rate off larger base = extending market leadership. • BloomNet Wire Service: increasing market penetration and market share vs. legacy competitors • Gourmet Food and Gift Baskets: category leader with expanding product offering (Harry & David, Fannie May, Cheryl’s, The Popcorn Factory, etc.), omni-channel strategy featuring strong ecommerce growth. 3
  4. 4. Mission Statement: “Deliver Smiles!” To help you express yourself perfectly Truly original gifts Caring team obsessed with service An easy way to deliver a smile - Any issue resolved, no questions asked - Award winning service - Same-day delivery - Call, click or come in (multi-channel) - Social, Mobile, Local - Fast, easy websites (MBP) - Truly original designs - “Signature” gifts - Real value and price points for any budget Deliver Smiles! - The right gift, for the right person, at the right time - Helpful gift guides 4
  5. 5. Business Platform – “Celebratory Ecosystem” Floral Gourmet Food & Gift Baskets 5
  6. 6. Consumer Floral: 1-800-FLOWERS.COM • Market Leadership • Powerful Brand • Significant Website Traffic and Customer Database • Social and Mobile Commerce Early Adopter and Leader • Innovative Merchandising • Good, Better, Best Offerings • “Truly Original” Designs • Leveragable Same-Day, Any-Day Delivery Capability 6
  7. 7. BloomNet Wire Service • World-Class Business Solutions • Select network of retail florists utilize BloomNet’s resources to grow their businesses profitably • Quality & Innovation Leader • Growing Market Penetration • Strong Contribution Margin • BloomNet Advantages: • Largest Volume of Directable Orders. • Better Value Proposition: Tiered Pricing Model. • Expanded Suite of Products and Services: • Industry’s First Online Digital Directory • State-of the-Art P.O.S. Technology • Floriology® Institute Education Center • Website Development and Hosting • Search & SEO Marketing Services 7
  8. 8. Gourmet Food & Gift Baskets • Relevant Gift Brands Strategy: • Fragmented Market >$16B • Multi-channel/ E-commerce focus • Revenue >$640 mm • Cross-Brand Leveraging: • Multi-Brand Website • Customer Database • Manufacturing Capabilities • Product Design & Sourcing 8
  9. 9. Harry & David Acquisition • Combines leading brands in Floral and Gourmet Food gifting. • Creates dominant, omni-channel gift retailing company with >$1B in revenues and ~$90MM in EBITDA. 9 • Highly accretive before any revenue and/or operating synergies. • Purchase price: - $142.5MM cash • New credit facility: - Five-year term loan - $200MM revolving credit line for working capital and other uses.
  10. 10. Multi-Brand Website Strategy • Leverage 1-800-FLOWERS.COM Brand Equity, Web Traffic, Customer Database, Marketing and Advertising • Enable Gourmet Food Gift Brands to Market Year-Round for “Every Day” Gifting Occasions • Capture Larger Share of Customers’ Gift “Wallet”
  11. 11. Social Networking: Reaching Our Customers 12
  12. 12. Innovate & Invest for the Future Mobile traffic is growing rapidly iPhone App Droid App 13
  13. 13. Key Strategic Priorities • Know and Take Care of Our Customers: • Provide the right products and services with consistent, excellent quality and value; help our customers send smiles everyday. • Maintain our Financial Strength and Flexibility: • Focus on reducing operating costs; Strengthen our balance sheet and add flexibility to our capital structure. • Continue to Innovate and Invest for the Future: • Invest in Technology; Invest in our Brands; Invest in New Growth Opportunities that position us for enhanced future top and bottom line results. 14
  14. 14. Maintain Financial Strength & Flexibility • Proven Operating Cost Leverage • Continued focus on OPEX cost reduction opportunities • Improving marketing leverage/ ROI • Strong Balance Sheet • Managing working capital to drive strong and growing free cash flow • Low debt ratio; significant capacity available for growth • Flexible, low interest bank credit facility: $200MM revolver and $142.5MM term loan 15
  15. 15. Revenue & EBITDA From Continuing Operations $ Millions Revenue EBITDA1 $644.9 $29.8 FY10 $661.4 $38.3 FY11 $707.5 $44.3 FY12 $735.5 $48.9 FY13 (1Excluding stock-based compensation; 2 Impact of Valentine snow storm; 3Guidance including Harry & David, excluding Harry & David fiscal 2015 first quarter loss based on timing of acquisition) 6.6% 6.3% 6.0% 4.6% $756.3 FY14 $48.22 6.4% $1.1B3 FY15G $90.03 8.2% 16
  16. 16. Top- and Bottom-Line Growth Strategies • Manage Those Aspects of Our Business That We Can Control • Merchandising, Marketing, Operating Expenses • Seek Organic Growth in Key Business Categories • Increase Cross-Brand Marketing and Merchandising via new Multi- Brand Platform • Grow Omni-Channel Gourmet Food & Gift Baskets Business • Increase BloomNet Wire Service Market Penetration • New Business Development •; Fannie May Berries; Social/ Mobile Commerce • Acquisition Opportunities • Gourmet Food & Gift Baskets; Social Gifting; Personalization • Enhance Profitability • Increase Margins and Build on Revenue Growth Trends • Drive EBITDA, EPS and Free Cash Flow 17
  17. 17. 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 Reports 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. (*A Reconciliation of Net Income to EBITDA is available at the Investor Relations section of the Company’s website at as part of the Company’s tables attached to its quarterly filings with the SEC on forms 10Q and 10K as well as its quarterly results press releases.) 18
  18. 18. Contact: Joseph D. Pititto VP Investor Relations Phone: (516) 237-6131 E-mail: NASDAQ: FLWS 19