Note 11 - Business Segments

3 Months Ended

Sep. 29, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 – 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, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Three Months Ended
	September 29,			October 1,
	2024			2023
	(in thousands)
Net Revenues:
Segment Net Revenues:
Consumer Floral & Gifts	$	135,180		$	142,194
BloomNet		23,075			28,870
Gourmet Foods & Gift Baskets		84,003			98,109
Corporate		89			270
Intercompany eliminations		(257	)		(393	)
Total net revenues	$	242,090		$	269,050
Operating Income (Loss):
Segment Contribution Margin:
Consumer Floral & Gifts	$	4,944		$	8,826
BloomNet		6,841			9,387
Gourmet Foods & Gift Baskets		(12,253	)		(11,028	)
Segment Contribution Margin Subtotal		(468	)		7,185
Corporate (a)		(33,475	)		(31,568	)
Depreciation and amortization		(13,038	)		(13,194	)
Operating loss	$	(46,981	)	$	(37,577	)

(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, stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. 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 &								Gourmet Foods &				Corporate and
	Gifts				BloomNet				Gift Baskets				Eliminations						Consolidated
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023		September 29, 2024			October 1, 2023			September 29, 2024			October 1, 2023
	(in thousands)
Net revenues
E-commerce	$	133,544	$	140,335	$	-	$	-	$	59,630	$	69,576	$	-		$	-		$	193,174		$	209,911
Other		1,636		1,859		23,075		28,870		24,373		28,533		(168	)		(123	)		48,916			59,139
Total net revenues	$	135,180	$	142,194	$	23,075	$	28,870	$	84,003	$	98,109	$	(168	)	$	(123	)	$	242,090		$	269,050
Other revenues detail
Retail and other	$	1,636	$	1,859	$	-	$	-	$	1,784	$	1,934	$	-		$	-		$	3,420		$	3,793
Wholesale		-		-		10,112		11,797		22,589		26,599		-			-			32,701			38,396
BloomNet services		-		-		12,963		17,073		-		-		-			-			12,963			17,073
Corporate		-		-		-		-		-		-		89			270			89			270
Eliminations		-		-		-		-		-		-		(257	)		(393	)		(257	)		(393	)
Total other revenues	$	1,636	$	1,859	$	23,075	$	28,870	$	24,373	$	28,533	$	(168	)	$	(123	)	$	48,916		$	59,139