Note 12 - Business Segments

9 Months Ended

Mar. 27, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12 – Business Segments

The Company’s management reviews the results of its operations by the following three business segments:

• Consumer Floral & Gifts,

• 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. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Three Months Ended						Nine Months Ended
	March 27, 2022			March 28, 2021			March 27, 2022			March 28, 2021
Net Revenues:	(in thousands)
Segment Net Revenues:
Consumer Floral & Gifts	$	264,243		$	260,393		$	760,555		$	727,296
BloomNet		38,448			38,833			107,212			105,622
Gourmet Foods & Gift Baskets		167,402			175,245			855,830			803,439
Corporate		43			54			157			295
Intercompany eliminations		(560	)		(291	)		(1,761	)		(1,390	)
Total net revenues	$	469,576		$	474,234		$	1,721,993		$	1,635,262
Operating Income:
Segment Contribution Margin:
Consumer Floral & Gifts	$	20,523		$	22,537		$	77,869		$	87,430
BloomNet		9,783			12,042			32,530			34,604
Gourmet Foods & Gift Baskets		(17,134	)		12,132			85,695			145,172
Segment Contribution Margin Subtotal		13,172			46,711			196,094			267,206
Corporate (a)		(26,735	)		(35,128	)		(90,694	)		(101,582	)
Depreciation and amortization		(12,693	)		(11,892	)		(36,251	)		(31,792	)
Operating income	$	(26,256	)	$	(309	)	$	69,149		$	133,832

(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: 

	Three Months Ended
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	March 27, 2022		March 28, 2021		March 27, 2022		March 28, 2021		March 27, 2022		March 28, 2021		March 27, 2022			March 28, 2021			March 27, 2022			March 28, 2021
Net revenues
E-commerce	$	261,707	$	257,982	$	-	$	-	$	148,070	$	166,786	$	-		$	-		$	409,777		$	424,768
Other		2,536		2,411	$	38,448	$	38,833		19,332		8,459		(517	)		(237	)		59,799			49,466
Total net revenues	$	264,243	$	260,393	$	38,448	$	38,833	$	167,402	$	175,245	$	(517	)	$	(237	)	$	469,576		$	474,234
Other revenues detail
Retail and other		2,536		2,411		-		-		1,656		1,660		-			-			4,192			4,071
Wholesale		-		-		15,322		12,383		17,676		6,799		-			-			32,998			19,182
BloomNet services		-		-		23,126		26,450		-		-		-			-			23,126			26,450
Corporate		-		-		-		-		-		-		43			54			43			54
Eliminations		-		-		-		-		-		-		(560	)		(291	)		(560	)		(291	)
Total other revenues	$	2,536		2,411	$	38,448	$	38,833	$	19,332	$	8,459	$	(517	)	$	(237	)	$	59,799			49,466

	Nine Months Ended
	Consumer Floral & Gifts				BloomNet				Gourmet Foods & Gift Baskets				Corporate and Eliminations						Consolidated
	March 27, 2022		March 28, 2021		March 27, 2022		March 28, 2021		March 27, 2022		March 28, 2021		March 27, 2022			March 28, 2021			March 27, 2022			March 28, 2021
Net revenues
E-commerce	$	753,813	$	721,049	$	-	$	-	$	746,857	$	720,392	$	-		$	-		$	1,500,670		$	1,441,441
Other		6,742		6,247		107,212		105,622		108,973		83,047		(1,604	)		(1,095	)		221,323			193,821
Total net revenues	$	760,555	$	727,296	$	107,212	$	105,622	$	855,830	$	803,439	$	(1,604	)	$	(1,095	)	$	1,721,993		$	1,635,262
Other revenues detail
Retail and other		6,742		6,247		-		-		8,084		7,321		-			-			14,826			13,568
Wholesale		-		-		39,890		32,826		100,889		75,726		-			-			140,779			108,552
BloomNet services		-		-		67,322		72,796		-		-		-			-			67,322			72,796
Corporate		-		-		-		-		-		-		157			295			157			295
Eliminations		-		-		-		-		-		-		(1,761	)		(1,390	)		(1,761	)		(1,390	)
Total other revenues	$	6,742	$	6,247	$	107,212	$	105,622	$	108,973	$	83,047	$	(1,604	)	$	(1,095	)	$	221,323		$	193,821