1-800-FLOWERS.COM
Annual Report 2005

Plain-text annual report

Special Bonus Special Bonus 2006 Gift and 2006 Gift and CELEBRATIONS CELEBRATIONS Planning Planning CALENDAR CALENDAR 2005 Annual Report Your Florist of ChoiceSM A B O U T 1 - 8 0 0 - F L O W E R S . C O M ® For more than 25 years, 1-800-FLOWERS.COM, Inc. – “Your Florist of ChoiceSM ” – has been providing customers around the world with the freshest flowers and finest selection of plants, gift baskets, gourmet foods and confections, and plush stuffed animals perfect for every occasion. 1-800-FLOWERS.COM® offers the best of both worlds: exquisite, florist-designed arrangements individually created by some of the nation’s top floral artists and hand-delivered the same day, and spectacular flowers shipped from our growers to your door fresh. Customers can shop 1-800-FLOWERS.COM 24 hours a day, 7 days a week via the phone or Internet (1-800-356-9377 or www.1800flowers.com) or by visiting a Company-operated or franchised store. Gift advisors are available 24/7, and fast and reliable delivery is offered same day, any day. As always, 100 percent satisfaction and freshness is guaranteed. The 1-800-FLOWERS.COM collection of brands also includes home decor and garden merchandise from Plow & Hearth® (1-800-627-1712 or www.plowandhearth.com); premium popcorn and specialty treats from The Popcorn Factory® (1-800-541-2676 or www.thepopcornfactory.com); exceptional cookies and baked gifts from Cheryl&Co.® (1-800-443-8124 or www.cherylandco.com); gourmet foods from GreatFood.com® (www.greatfood.com); children's gifts from HearthSong® (www.hearthsong.com) and Magic Cabin® (www.magiccabin.com); and wine gifts from the WineTasting Network® (www.ambrosiawine.com and www.winetasting.com). 1-800-FLOWERS.COM, Inc. stock is traded on the NASDAQ market under ticker symbol FLWS. S P E C I A L N O T E R E G A R D I N G F O R W A R D - L O O K I N G S T A T E M E N T S A number of statements contained in this report, other than statements of historical fact, 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. These risks and uncertainties include, but are not limited to: the Company’s ability to achieve cost efficient growth; its ability to maintain and enhance its online shopping web sites to attract customers; its ability to successfully introduce new products and product categories; its ability to maintain and enhance profit margins for its various products; its ability to provide timely fulfillment of customer orders; its ability to cost effectively acquire and retain customers; its ability to continue growing revenues; its ability to compete against existing and new competitors; its ability to manage expenses associated with necessary general and administrative and technology investments; its ability to cost effectively manage inventories; its ability to improve its bottom line results; its ability to leverage its operating infrastructure; its ability to achieve its stated results guidance for fiscal 2006 and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company expressly disclaims any intent or obligation to update any of the forward looking statements made in this report or in any of its SEC filings except as may be otherwise stated by the Company. F I N A N C I A L H I G H L I G H T S Years Ended July 3, 2005 June 27, 2004 June 29, 2003 June 30, 2002 July 1, 2001 Total Net Revenues Online Revenues Telephonic Revenues Non-floral Revenues* Gross Profit Margin Percentage EBITDA EPS $670,679 360,902 259,929 47% 41.1% $ 26,387 0.12 (in thousands, except percentages) $603,978 $565,618 $497,205 $442,239 307,470 263,039 48% 41.9% 265,278 271,071 49% 42.6% 218,179 248,931 46% 41.0% 182,924 230,723 41% 39.4% $ 36,402 $ 27,510 $ 11,396 $(23,757) 0.60** 0.18 (0.02) (0.64) T O T A L R E V E N U E S (in $ millions) $670.7 $604.0 $565.6 $497.2 $442.2 * As a percentage of combined online and telephonic net revenues. ** For the year ended June 27, 2004, EPS included a net income tax benefit of $19.2 million, or $0.28 per share. FY01 FY02 FY03 FY04 FY05 F I N A N C I A L R E P O R T I N S E R T See inside rear-cover pocket. F I S C A L 2 0 0 5 A C H I E V E M E N T S Grew total revenues 11 percent, or $66.7 million, to $670.7 million; online revenues grew 17.4 percent, or $53.4 million, to $360.9 million. Accelerated the turnaround in our Plow & Hearth® home-and-garden business where we achieved approximately 13 percent revenue growth in the fiscal fourth quarter and six percent for the full year, reversing the prior year’s negative sales trend. Completed the acquisitions of Cheryl&Co.®, a leading multi-channel retailer of cookies and other baked gifts, and the WineTasting Network®, a Napa Valley-based provider of winery services and direct- marketer of wine gifts and wine clubs. O N L I N E R E V E N U E G R O W T H (in $ millions) $360.9 $307.5 $265.3 $218.2 $182.9 Cost-effectively attracted 3.3 million new customers while concurrently increasing annual repeat order rate to approximately 47 percent. FY01 FY02 FY03 FY04 FY05 To our Shareholders the floral category. As a result, we cost-effec- tively attracted more than 1.6 million new cus- tomers during the second half of fiscal 2005 – and 3.3 million for the full year – while keeping customer acquisition cost below our targeted $20 level. Most important, we more than dou- bled our revenue growth rate to 16 percent in the second half of the fiscal year, compared with 6 percent in the first half and thereby achieved total revenue growth of 11 percent for the full year. While the additional marketing and adver- tising investments reduced our bottom-line results, we believe the success of our efforts here has provided excellent momentum toward achieving our goal of solid, and increasingly profitable, double-digit revenue growth during fiscal 2006. During fiscal 2005 we revitalized key areas of our business, built a strong position in our Food, Wine and Gift Basket category and initiated an effort to grow our Bloomnet® florist business-to-business operations. From the standpoint of revenue growth, essentially, the year was a tale of two halves. During the first half, we successfully revitalized our home and yard business category – no small accom- plishment considering the negative sales trend we saw in fiscal 2004. By focusing on improving the merchandising and creative for our Plow & Hearth® brand, we achieved solid year-over-year comparable sales growth, highlighted by almost 13 percent growth in our fiscal fourth quarter. On the “need for improvement” side, total rev- enue growth in the first half lagged our double- digit targets. In retrospect, we were not aggressive enough in our marketing efforts for our core floral gift business. Thus, in January, we launched an effort to significantly step up our marketing programs and drive accelerated revenue growth. This effort was designed specifically to make us more aggressive in terms of new customer acquisition under our flagship 1-800-FLOW- ERS.COM® brand, leveraging what we believe is the lowest cost to acquire a new customer in Investing in New Opportunities Also in January, we announced plans to begin making investments to grow our Bloomnet florist business-to-business operations. For almost 20 years, Bloomnet has been a select network of florists representing, typically, less than ten percent of the total num- ber of florists in the country. These florists were carefully chosen for their exceptional design capabilities and their willingness to adhere to our stringent quality standards. As a result, Bloomnet has enabled us to consistently provide our customers with the very best quality floral gifts with unique same-day, any-day delivery capabilities. In our new Bloomnet initiative, we are lever- aging our leadership position in the floral indus- try – including our growing order volume and scalable technology platform – to offer select florists throughout the country a compelling opportunity to grow their businesses and improve their profitability. To accomplish this, beginning in the second half of fiscal 2005, we have made, and will continue to make, investments, primarily in the form of sales and management personnel, to expand and deepen our florist relationships while maintaining our industry-leading quality standards. By selec- tively growing the Bloomnet network and providing an expanded offering of products and services to our florist members, we believe we can build a strong, incremental revenue stream that will generate significant returns going forward. Accelerating Growth in Food, Wine and Gift Baskets During fiscal 2005 we made two acquisi- tions to help accelerate growth in our key Food, Wine and Gift Basket category. In November, we acquired the WineTasting Network®, a Napa Valley-based leader in distri- bution services for more than 100 of California’s leading wineries and a direct-to-consumer wine marketer through the AmbrosiaSM wine brand. Wine, as both a consumer and corporate gift, is something our customers have long requested. However, various state laws restricting interstate shipping of wine have slowed the development of this business. Fortunately, an increasing num- ber of states are opening their borders to allow wineries to ship directly to consumers. As this trend continues, and states gradually extend the new open shipping policies to wine retailers, we believe the WineTasting Network will provide an excellent platform from which we can build a leading position in gift baskets and gift sets containing great wines. We made our second acquisition of the year at the start of the fourth quarter buying Cheryl&Co.®, a leading, multi-channel retailer of cookies and other baked gifts. Delicious cook- ies, cakes and other baked goods are among the fastest growing gifts in our Food, Wine and Gift Basket category. This was illustrated by the suc- cessful rollout of our own, internally-developed Mama Moore’s Bakeshop® brand, which grew to several million dollars in sales over the past two years. In our review of this category, Cheryl&Co., already with more than $30 million in sales, con- sistently stood out as a leader with its excellent product quality, exceptional packaging design and innovative gift presentation. Based in Ohio, Cheryl&Co. has a history of strong revenue growth and profitability that we believe we can accelerate by giving their excel- lent management team access to the unique collection of assets and capabilities that we have developed over the years, including our e-commerce technology and marketing expert- ise, our customer service and fulfillment capabil- ities, our expanded corporate sales force, our strong balance sheet and our database of more than 15 million customers. Importantly, when combined with our other food gift offerings, we expect the acquisitions of the WineTasting Network and Cheryl&Co., will increase our annual revenues in this key category to more than $100 million for fiscal 2006. Marketing Message is Resonating Throughout the second half of fiscal 2005 and into our current fiscal year, we have seen an increasing number of new and existing customers embrace 1-800-FLOWERS.COM as their “Florist of Choice.” Our marketing efforts and message are resonating with cus- tomers, as we can measure through our internal metrics on retention, frequency and the range of products purchased. Our “Your Florist of ChoiceSM” message conveys our unique ability to provide our customers with choices, including our florist designed gifts, hand-delivered same- day anywhere in the country, our “Fresh From Our Growers” product line of flowers shipped fresh, overnight (an innovation we pioneered more than 20 years ago), our exclusive “expert designers” collections, featuring “celebrity designers” such as Jane Carroll, Julie McCann Mulligan and Jane Packer, plus all the other great gifts that customers could expect to find in their “high-end” florist: candy, giftware, towers of baked gifts and a broad range of gift baskets and gift sets. Of course, all of our gifts come with a 100 percent quality guarantee, another innovation we introduced more than a dozen years ago. The combination of our expanded gift offer- ing, the strength and reliability of our brand and the convenience of our multi-channel retail access continues to enable us to deepen our relationships with our customers. During the year, even as we stepped up our customer acquisition efforts and attracted a record num- ber of new customers, we also increased our customer repeat rate, reaching more than 46 percent for the full year. During fiscal 2006, we plan to continue both our accelerated new customer acquisition efforts and increase our repeat customer rate, and thereby enhance top- and bottom-line growth. Financial Highlights During fiscal 2005, we grew total revenues 11 percent, or $66.7 million, to $670.7 million, compared with $604 million in fiscal 2004. This increase was driven primarily by online revenue growth of 17.4 percent, or $53.4 million, to $360.9 million compared with $307.5 million in the prior year. Gross profit margin percent for the year was 41.1 percent compared with 41.9 percent in fiscal 2004, pri- marily reflecting product mix and promotional pricing programs. Floral gift sales, which grew approximately 10 percent for the year, represented 52.7 percent of total combined online and telephonic rev- enues, up from 52.3 percent in the prior year. It is impor- tant to note that this increase came on top of the largest base in the floral category, thereby extending our market leadership. Revenues from our Specialty Brands businesses increased 12.4 percent to approximately $226 million. Excluding our home and garden business, which grew approximately 6 percent for the year, the Specialty Brands businesses grew approximately 23 percent to approximately $100 million. During fiscal 2005, the Company’s operating expense ratio was 39.3 percent com- pared with 38.3 percent in the prior year. This reflects our previously discussed strategy to increase spending in several key areas: • Marketing and selling for our core floral gift business, • Expansion of our Bloomnet B2B operations, and • Infrastructure investments for our recent acquisitions. The increase also reflects the carrying costs associated with the seasonality of the new busi- nesses we acquired during the year, both of which generate the majority of their revenues and profitability in the calendar year-end holiday period, our fiscal second quarter. Strong Balance Sheet W e continue to have a strong balance sheet with minimal debt and ample cash. At the end of fiscal 2005 our cash and investments position was approxi- mately $47 million, even after we used approxi- mately $50 million during the year to acquire the WineTasting Network and Cheryl&Co. and an additional $9.8 million in our ongoing stock repurchase program. Our solid balance sheet affords us the ability to grow our business through both organic development efforts as well as strategic acquisitions. In addition, to the extent that we generate cash in excess of these In terms of business categories: • In our floral consumer business, we expect to drive double-digit revenue growth, and thereby expand our market lead; • In our Home and Garden business, we plan to build on the successful turnaround achieved in fiscal 2005, and expect revenue growth in the mid-single digit range; • In our Food, Wine and Gift Baskets businesses, we expect to generate more than $100 mil- lion in revenue through a combina- tion of organic growth and full-year contributions from Cheryl&Co. and the WineTasting Network. In terms of margin opportunity, during the year, we expect to expand our gross margin by 150 basis points, primarily through a combination of product mix, pricing initiatives, improved product sourc- ing, and fulfillment and customer service enhancements. Reflecting our plans to continue to invest in the key areas discussed earlier, we expect our operating expense ratio will be in line with fiscal 2005. As a result of these factors, during fiscal 2006, we expect to achieve pro forma earnings growth of more than 75 percent compared with fiscal 2005. We define pro forma earnings as For the past two years we’ve received rave reviews for the innovative design of our annual reports; incorporating our Celebrations Calendar (fiscal 2003) and Celebrations Appointment Book (fiscal 2004) along with our detailed financial results report and outlook for the new year. For fiscal 2005, we’ve once again incorporated a value-added Celebrations Calendar – complete with useful gifting tips and descriptions of our expanded customer engagement services, all designed to make 1-800-FLOWERS.COM® “Your Florist of ChoiceSM” for our customers and investors alike. needs, we plan to continue to return value to our shareholders through our stock repurchase program, subject to general business and market conditions and other factors, including alterna- tive investment opportunities. Growth Guidance During fiscal 2006, we plan to continue the strategic initiatives launched in the second half of fiscal 2005 and expect to drive revenue growth in a range of 14-to-16 percent. We anticipate the majority of this growth will come through our online channels while telephonic sales will likely grow at a single digit pace. We expect our retail and fulfillment revenue line – which includes our expanding Bloomnet operations, our winery services busi- ness and our company-owned and franchised stores – to grow more than 50 percent com- pared with fiscal 2005. GAAP net income excluding stock-based com- pensation expense and the related tax effect, as calculated under FAS No. 123R. We expect the non-cash impact of stock-based compensation expense during fiscal 2006 to be in a range of $3-to-$4 million. In addition to the strong earnings growth, and as a result of our relatively low working cap- ital requirements, we expect cash provided by operations to be more than $40 million during fiscal 2006 with capital expenditures in a range of $14-to-$16 million for the year. Quarterly Guidance In terms of our quarterly guidance for fiscal 2006, it is important to note that we antici- pate an increase in the seasonality of our business primarily associated with our specialty brands, in particular the acquisitions we’ve made in the Food, Wine and Gift Basket area. As such, in fiscal 2006 we anticipate a signifi- cantly larger concentration of both revenues and profits will occur in our fiscal second quarter (the calendar year-end period, which includes the holiday shopping season). Conversely, we anticipate that our fiscal first quarter – traditionally our lowest in terms of revenues due to the lack of any major gifting holidays during the summer months – will record a larger loss compared with the prior year. This loss reflects the carrying costs associ- ated with our recently acquired companies, as well as our continued investments in marketing programs and our Bloomnet B2B operations. Looking ahead, as we enter our 30th year in business – having grown from one flower shop to a leadership position in the floral and gift cat- egory – we are well positioned to leverage the investments we made last year and those we are making this year in both our existing businesses and new business initiatives. As a result, during fiscal 2006, we anticipate achieving accelerated, double-digit revenue growth while significantly enhancing our bottom-line returns in the form of even faster growth in earnings and cash flow. We believe this combination of sustainable growth and profitability will enable us to build long-term value for our shareholders. We thank all of our customers, associates, investors, vendors and business partners for their continued support. Sincerely, Jim McCann Chairman and CEO Chris McCann President January 2006 Forget you not. It’s the start of a new year, and 1-800-FLOWERS.COM® can make this year your easiest ever for gift shopping. Visit www.1800flowers.com and sign up for our Gift Reminder Service. Imagine the convenience of receiving automatic emails throughout the year, reminding you of important gifting occasions... birthdays, anniversaries, graduations, and much more! Ring in the new year with uniquely imaginative gifts D E C E M B E R 2 0 0 5 F E B R U A R Y 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY 1 New Year’s Day 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Martin Luther King Jr.’s Birthday (observed) 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Find the perfect gift for New Year’s celebrations and every other special day. Call 1-800-FLOWERS® (1-800-356-9377), click www.1800flowers.com or come in to one of our stores! February 2006 Say “I love you” with beautiful gifts that touch the heart J A N U A R Y 2 0 0 6 M A R C H 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY 1 8 2 Groundhog Day 3 4 9 10 11 5 6 7 Your florist of choiceSM W ith stunning flowers and magnificent fresh from our growers bouquets designed by the best in the business, it’s no wonder 1-800-FLOWERS.COM® has been the florist of choice that millions of people have relied on for almost 30 years. Whether it’s a dozen roses or our signature Birthday Flower Cake®, we’ll help you make every occasion special. 12 13 14 Valentine’s Day 15 16 17 18 19 20 Presidents’ Day 21 22 23 24 25 26 27 28 Order Florist Designed gifts by 1 p.m. ET and we’ll deliver TODAY! Call 1-800-FLOWERS® (1-800-356-9377), click www.1800flowers.com or come in to one of our stores! March 2006 Celebrate St. Patrick’s Day with charming gifts they can’t resist F E B R U A R Y 2 0 0 6 A P R I L 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY At 1-800-FLOWERS.COM®, we promise the freshest flowers, artistically designed...and we have many more gift choices! For example, visit www.thepopcornfactory.com for scrumptious popcorn and candy. 5 6 7 1 8 2 9 3 4 10 11 Fresh, from us to you. March is the ideal time of spring with a won- to celebrate the coming drous bouquet of flowers from 1-800-FLOWERS.COM.® Our Fresh From Our Growers Collection 12 13 14 15 16 17 St. Patrick’s Day 18 features bouquets from the world’s finest floral farms. Only the freshest flowers are picked at the peak of per- fection by specially selected growers, then delivered fresh anywhere in the country. 19 20 First Day of Spring 21 22 23 24 25 26 27 28 29 30 31 April 2006 Turn your thoughts to spring with gifts that capture the season M A R C H 2 0 0 6 M A Y 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY Select a stylish and innovative creation from Jane Packer, Julie McCann Mulligan or Jane Carroll...our expert Floral Designers. Call 1-800-FLOWERS® (1-800-356-9377), click www.1800flowers.com or come in to one of our stores! 1 April Fool’s Day 2 9 3 4 5 6 7 8 10 11 12 Passover Begins at Sunset 13 14 15 16 Easter 17 18 19 20 21 22 24 Administrative Professionals’ Week Begins 25 26 Administrative Professionals’ Day 27 28 29 23 30 Your satisfaction, guaranteed. Y ou deserve quality and at 1-800-FLOWERS.COM®, quality is our number-one priority. Every gift is backed by our 100% satisfaction guarantee. This spring, and every other season, you can depend on 1-800-FLOWERS.COM® for flowers and many other gifts that you’ll be proud to give and your friends and loved ones will be thrilled to receive. May 2006 We give the advice, you take the credit. Have you sometimes found it difficult to select just the right gift for Mother’s Day? Not to worry, the personal Gift Advisors at 1-800-FLOWERS.COM® are here for you. Simply log on to www.1800flowers.com or call 1-800-FLOWERS.COM® (1-800-356-9377) and let our friendly and knowledgeable experts help you make mom feel extra special on her day. Tell mom you love her with gifts she’s sure to cherish A P R I L 2 0 0 6 J U N E 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY 1 8 2 9 7 3 4 5 Cinco de Mayo National Bring Your Mom to Work Day 6 10 11 12 13 14 Mother’s Day 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Memorial Day (Observed) 30 31 If Mom loves delicious food, and who doesn’t, she’ll thank you for visiting www.greatfood.com, where you’ll choose from a bounty of taste- tempting gourmet treats! Also log on to www.ambrosiawine.com and www.winetasting.com for enticing wine gifts. June 2006 Make dad’s day, with gifts he’ll enjoy now and all summer M A Y 2 0 0 6 J U L Y 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY Make sure dad has everything he wants and then some. Visit www.plowandhearth.com for extraordinary outdoor gifts and distinctively designed garden accents. Any time, from anywhere. 4 5 6 7 1 8 2 9 3 10 Gift shopping at 1-800-FLOWERS.COM® means 24/7 convenience. Order from the comfort of your home or business any time, any day of the year – we’re just a phone call or a click away! Even if you need same-day delivery, just order by 1 p.m. ET and we’ll take care of the rest. 11 12 13 14 Flag Day 15 16 17 18 Father’s Day 19 20 21 First Day of Summer 22 23 24 25 26 27 28 29 30 July 2006 Show your stripes with the freshest gift ideas J U N E 2 0 0 6 A U G U S T 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY 1 8 3 4 Independence Day 5 6 7 10 11 12 13 14 Bastille Day 15 Independence Day is all about fun-filled back- yard gatherings. Log on to www.cherylandco.com for cookies and baked items to please every guest, and, visit www.plowandhearth.com for home and garden ideas that convey the essence of summer. Every week, a new way to save. 2 9 W eekly Specials at 1-800-FLOWERS.COM® are a great way to shop for fabulous floral gifts at terrific prices! Visit www.1800flowers.com and check out our Grower’s Specials every week for red-hot savings on the freshest flowers – chosen at the peak of perfection by our specially selected growers and delivered anywhere in the country. 16 17 18 19 20 21 22 23 Parents’ Day 30 24 31 25 26 27 28 29 August 2006 Surprise someone special with that one-of-a-kind gift J U L Y 2 0 0 6 S E P T E M B E R 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY Here’s a birthday idea that really takes the cake. 6 7 1 8 2 9 3 4 5 10 11 12 Every day, thousands of peo- ple celebrate birthdays and chances are, you know at least one of them. The signature Birthday Flower Cake® from 1-800-FLOWERS.COM® is a spectac- ular floral sculpture...in the shape 13 14 National Friendship Week Begins 15 16 17 18 19 of a classic birthday cake! Have it delivered same-day, 100% satisfaction guaranteed. 20 21 22 23 24 25 26 27 28 29 30 31 Relax, we have the gift you need and we make it super easy to shop...no matter where you are. Call 1-800-FLOWERS® (1-800-356-9377), click www.1800flowers.com or come in to one of our stores! September 2006 Get ready for fall with gifts they’ll truly appreciate A U G U S T 2 0 0 6 O C T O B E R 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY Back to school is a great time for popcorn and other tasty goodies. Log on to www.thepopcornfactory.com for an incredible array of premium popcorn creations and other specialty treats. A very smart business decision. 3 4 Labor Day 5 6 7 1 8 2 9 Let Business Gift Services from 1-800-FLOWERS.COM® be your source for gifts that make customers, vendors, prospects and employees feel special. Call 1-888-755-7474 to speak with an account manager about our vast selection of great gift ideas. It could be one of the best business decisions you’ll make this year. 10 Grandparents’ Day 11 Patriot Day 12 13 14 15 16 17 18 19 20 21 22 Rosh Hashanah Begins at Sunset 23 First Day of Fall 24 25 26 27 28 29 30 October 2006 Express your Halloween spirit with treats that do the trick S E P T E M B E R 2 0 0 6 N O V E M B E R 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY 1 Yom Kippur Begins at Sunset 2 3 4 5 6 7 Bewitched about choosing the perfect gift? Visit www.1800flowers.com. 8 National Children’s Day 9 Columbus Day (Observed) 10 11 12 13 14 this Halloween the Log on today and make most memorable ever. 1-800-FLOWERS.COM® has an irresistible assortment of luscious gourmet treats, lovely floral arrangements, sensational gift baskets, cuddly soft plush toys, boldly creative decorations, and much more! 15 16 National Bosses’ Day 17 18 19 20 21 Sweetest Day 22 23 24 25 26 27 28 29 30 31 Halloween Please the palate of every ghost and goblin you know, visit www.cherylandco.com for yummy cookies and mouthwatering baked gifts. November 2006 Welcome the holidays with innovative gift possibilities O C T O B E R 2 0 0 6 D E C E M B E R 2 0 0 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY This Thanksgiving, make a lasting impression on your holiday guests. Call 1-800-FLOWERS® (1-800-356-9377), click www.1800flowers.com or come in to one of our stores for the finest gifts and seasonal accents! Whether you’re setting the table, or setting a festive mood... 5 6 7 Election Day 1 8 2 9 3 4 10 11 Veteran’s Day Fresh floral designs from 1-800-FLOWERS.COM® are unforgettable. Choose from exquisite arrangements that stand 12 13 14 15 16 17 18 out in any setting, from the freshest flowers artistically designed by our select florists to marvelous hand- crafted creations by our expert Floral Designers Jane Carroll, Julie McCann Mulligan and Jane Packer. 19 20 21 22 23 Thanksgiving Day 24 25 26 27 28 29 30 December 2006 Spread the cheer with thoughtful gifts for everyone on your list N O V E M B E R 2 0 0 6 J A N U A R Y 2 0 0 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SUN DAY M O N DAY TUE SDAY WED N E SDAY THUR SDAY FR I DAY SATUR DAY Searching for the ideal wine for seasonal entertaining? Visit www.ambrosiawine.com and www.winetasting.com. And, for children’s gifts you won’t find anywhere else, visit www.hearthsong.com and www.magiccabin.com. 3 4 5 6 7 1 8 2 9 When it comes to holiday sending, we’re expressly yours. Placing your order from 1-800-FLOWERS.COM® has never been easier. Visit www.1800flowers.com and make your holiday shopping experience more convenient. Our new one- page Express Checkout streamlines your gift sending experience, letting you quickly provide all the informa- tion you need to send your gift. 10 11 12 13 14 15 Hanukkah Begins at Sunset 16 17 18 19 20 21 22 First Day of Winter 23 25 Christmas Day 26 First Day of Kwanzaa 27 28 29 30 24 31 C O M P A N Y I N F O R M A T I O N BOARD OF DIRECTORS CORPORATE OFFICERS James F. McCann Chairman and Chief Executive Officer 1-800-FLOWERS.COM James F. McCann Chairman and Chief Executive Officer 1-800-FLOWERS.COM SEC COUNSEL Cahill Gordon and Reindel 80 Pine Street New York, NY 10005 (212) 701-3000 SHAREHOLDER INQUIRIES Copies of the Company’s reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and additional information about 1-800-FLOWERS.COM may be obtained without charge by calling 516-237-6113. Information is also available via the Internet in the Investor Relations section at www.1800flowers.com, or by writing to: Investor Relations 1-800-FLOWERS.COM 1600 Stewart Avenue Westbury, New York 11590 Timothy J. Hopkins President Specialty Brands Enzo J. Micali Senior Vice President of Information Technology 1-800-FLOWERS.COM Monica L. Woo Senior Vice President and Chief Marketing Officer 1-800-FLOWERS.COM T. Guy Minetti Vice Chairman Corporate Development 1-800-FLOWERS.COM Christopher G. McCann President 1-800-FLOWERS.COM William E. Shea Senior Vice President of Finance and Administration, Treasurer and Chief Financial Officer 1-800-FLOWERS.COM STOCK EXCHANGE LISTING NASDAQ National Market Ticker Symbol: FLWS TRANSFER AGENT AND REGISTRAR Gerard M. Gallagher Senior Vice President/General Counsel and Secretary 1-800-FLOWERS.COM Thomas G. Hartnett Senior Vice President of Retail and Fulfillment 1-800-FLOWERS.COM Vincent J. McVeigh Senior Vice President 1-800-FLOWERS.COM American Stock Transfer & Trust Company 6201 15th Avenue Brooklyn, New York 11219 (718) 921-8200 INDEPENDENT AUDITORS Ernst & Young LLP 395 North Service Road Melville, New York 11747 (631) 752-6100 T. Guy Minetti Vice Chairman 1-800-FLOWERS.COM Christopher G. McCann President 1-800-FLOWERS.COM Kevin J. O’Connor Principal O’Connor Ventures Jeffrey C. Walker Managing Partner JPMorgan Partners Mary Lou Quinlan CEO JUST ASK A WOMAN John J. Conefry Vice Chairman Astoria Financial Corporation Leonard J. Elmore Senior Counsel LeBoeuf, Lamb, Green and MacRae, LLP Deven Sharma Executive Vice President The McGraw-Hill Companies Peter G. Rice President Plow & Hearth 1-800-FLOWERS.COM, Inc. 1600 Stewart Avenue Westbury, NY 11590 (516) 237-6000 

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