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Note 11 - Business Segments
 3 Months Ended
Oct. 01, 2023
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

 
  

October 1,

2023

  

October 2,

2022

 

Net Revenues:

 

(in thousands)

 

Segment Net Revenues:

        

Consumer Floral & Gifts

 $142,194  $162,180 

BloomNet

  28,870   33,367 

Gourmet Foods & Gift Baskets

  98,109   108,228 

Corporate

  270   44 

Intercompany eliminations

  (393

)

  (215

)

Total net revenues

 $269,050  $303,604 
         

Operating Income (Loss):

        

Segment Contribution Margin:

        

Consumer Floral & Gifts

 $8,826  $10,810 

BloomNet

  9,387   9,517 

Gourmet Foods & Gift Baskets

  (11,028

)

  (18,710

)

Segment Contribution Margin Subtotal

  7,185   1,617 

Corporate (a)

  (31,568

)

  (30,283

)

Depreciation and amortization

  (13,194

)

  (12,694

)

Operating income (loss)

 $(37,577

)

 $(41,360

)

 

(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 1, 2023

    

October 2, 2022

    

October 1, 2023

    

October 2, 2022

    

October 1, 2023

    

October 2, 2022

    

October 1, 2023

    

October 2, 2022

    

October 1, 2023

    

October 2, 2022

  

Net revenues

                                                                                

E-commerce

   $ 140,335     $ 160,382     $ -     $ -     $ 69,576     $ 78,540     $ -     $ -     $ 209,911     $ 238,922  

Other

     1,859       1,798       28,870       33,367       28,533       29,688       (123

)

     (171

)

     59,139       64,682  

Total net revenues

   $ 142,194     $ 162,180     $ 28,870     $ 33,367     $ 98,109     $ 108,228     $ (123

)

   $ (171

)

   $ 269,050     $ 303,604  
                                                                                 

Other revenues detail

                                                                          

Retail and other

     1,859       1,798       -       -       1,934       1,907       -       -       3,793       3,705  

Wholesale

     -       -       11,797       13,622       26,599       27,781       -       -       38,396       41,403  

BloomNet services

     -       -       17,073       19,745       -       -       -       -       17,073       19,745  

Corporate

     -       -       -       -       -       -       270       44       270       44  

Eliminations

     -       -       -       -       -       -       (393

)

     (215

)

     (393

)

     (215

)

Total other revenues

   $ 1,859     $ 1,798     $ 28,870     $ 33,367     $ 28,533     $ 29,688     $ (123

)

   $ (171

)

   $ 59,139     $ 64,682