Note 15 - Business Segments

12 Months Ended

Jun. 28, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

15.

Business Segments

The Company's management reviews the results of the Company's operations by the following

three

business segments:

•     

1

-

800

-Flowers.com Consumer Floral,

•     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.

	Years ended
Net revenues	June 28, 2020			Ju ne 30 , 201 9			July 1 , 201 8
	(in thousands)
Net revenues:
1-800-Flowers.com Consumer Floral	$	593,197		$	497,765		$	457,460
BloomNet		111,766			102,876			89,569
Gourmet Foods & Gift Baskets		785,547			648,418			605,523
Corporate		591			1,105			1,114
Intercompany eliminations		(1,464	)		(1,541	)		(1,745	)
Total net revenues	$	1,489,637		$	1,248,623		$	1,151,921

	Years ended
Operating Income from Continuing Operations	June 28, 2020			Ju ne 30 , 201 9			July 1 , 201 8
	(in thousands)
Segment Contribution Margin:
1-800-Flowers.com Consumer Floral	$	73,806		$	49,653		$	50,808
BloomNet		35,111			34,705			31,683
Gourmet Foods & Gift Baskets		110,627			82,319			70,927
Segment Contribution Margin Subtotal		219,544			166,677			153,418
Corporate (a)		(106,667	)		(91,604	)		(79,901	)
Depreciation and amortization		(32,513	)		(29,965	)		(32,469	)
Operating income	$	80,364		$	45,108		$	41,048

(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:

	Years Ended
	June 28, 2020									Ju ne 30 , 201 9									July 1 , 201 8
	Consumer Floral		BloomNet		Gourmet Foods & Gift Baskets		Consolidated			Consumer Floral		BloomNet		Gourmet Foods & Gift Baskets		Consolidated			Consumer Floral		BloomNet		Gourmet Foods & Gift Baskets		Consolidated
	(in thousands)
Net revenues
E-commerce	$	585,585	$	-	$	644,800	$	1,230,385		$	489,463	$	-	$	508,897	$	998,360		$	448,943	$	-	$	472,905	$	921,848
Retail		4,318		-		37,076		41,394			4,706		-		45,862		50,568			4,743		-		46,860		51,603
Wholesale		-		33,675		103,671		137,346			-		29,744		93,659		123,403			-		28,747		85,758		114,505
BloomNet Services		-		78,091		-		78,091			-		73,132		-		73,132			-		60,822		-		60,822
Other		3,294		-		-		3,294			3,596		-		-		3,596			3,774		-		-		3,774
Corporate		-		-		-		591			-		-		-		1,105			-		-		-		1,114
Eliminations		-		-		-		(1,464	)		-		-		-		(1,541	)		-		-		-		(1,745	)
Total net revenues	$	593,197	$	111,766	$	785,547	$	1,489,637		$	497,765	$	102,876	$	648,418	$	1,248,623		$	457,460	$	89,569	$	605,523	$	1,151,921