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Note 12 - Business Segments
 3 Months Ended
Oct. 02, 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, 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

 
  

October 2, 2022

  

September 26, 2021

 
  (in thousands) 

Net Revenues:

 

 

 

Segment Net Revenues:

        

Consumer Floral & Gifts

 $162,180  $181,229 

BloomNet

  33,367   30,834 

Gourmet Foods & Gift Baskets

  108,228   97,482 

Corporate

  44   45 

Intercompany eliminations

  (215

)

  (217

)

Total net revenues

 $303,604  $309,373 
         

Operating Income (Loss):

        

Segment Contribution Margin:

        

Consumer Floral & Gifts

 $10,810  $19,190 

BloomNet

  9,517   10,860 

Gourmet Foods & Gift Baskets

  (18,710

)

  (7,673

)

Segment Contribution Margin Subtotal

  1,617   22,377 

Corporate (a)

  (30,283

)

  (31,731

)

Depreciation and amortization

  (12,694

)

  (10,970

)

Operating loss

 $(41,360

)

 $(20,324

)

 

(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

 
  

October 2, 2022

  

September 26, 2021

  

October 2, 2022

  

September 26, 2021

  

October 2, 2022

  

September 26, 2021

  

October 2, 2022

  

September 26, 2021

  

October 2, 2022

  

September 26, 2021

 

Net revenues

                                        

E-commerce

 $160,382  $179,286  $-  $-  $78,540  $84,085  $-  $-  $238,922  $263,371 

Other

  1,798   1,943   33,367   30,834   29,688   13,397   (171

)

  (172

)

  64,682   46,002 

Total net revenues

 $162,180  $181,229  $33,367  $30,834  $108,228  $97,482  $(171

)

 $(172

)

 $303,604  $309,373 
                                         

Other revenues detail

                                     

Retail and other

  1,798   1,943   -   -   1,907   1,837   -   -   3,705   3,780 

Wholesale

  -   -   13,622   9,984   27,781   11,560   -   -   41,403   21,544 

BloomNet services

  -   -   19,745   20,850   -   -   -   -   19,745   20,850 

Corporate

  -   -   -   -   -   -   44   45   44   45 

Eliminations

  -   -   -   -   -   -   (215

)

  (217

)

  (215

)

  (217

)

Total other revenues

 $1,798   1,943  $33,367  $30,834  $29,688  $13,397  $(171

)

 $(172

)

 $64,682   46,002