On the heels of an announcement that FTD had let go three executives and plans to restructure, the company has announced disappointing second quarter results, stemming from “lower than expected traffic and conversion in U.S. Consumer segment as well as the resulting lower order volume that affected the florist segment.” Consolidated revenues were $299.9 million for the second quarter of 2018, a decrease of 8.6 percent compared to $328.1 million for the second quarter of 2017. FTD restructuring story from recent ebrief
“Our team is focused on stabilizing the company’s performance,” said Scott Levin, FTD’s interim president and CEO, in an Aug. 8 press release. “We believe our recently announced corporate restructuring and cost savings plan will help propel our organization forward, as we seek to capitalize on opportunities to optimize our operations, drive efficiency, and reduce costs.”
A company representative was not able to provide additional information at press time. The press release detailed the following key results by segment:
U.S. Consumer Segment
U.S. Consumer segment revenues for the second quarter of 2018 decreased 10.3 percent to $233.1 million, compared to $259.8 million for the second quarter of 2017. According to the release, “This decline was primarily due to a 9.5 percent decrease in consumer orders and a 1 percent decrease in average order value to $53.83, compared to the second quarter of 2017.” Revenues decreased 17.8 percent, 9 percent, and 7.5 percent for the FTD.com, ProFlowers, andGourmet Foodsbusinesses, respectively, for the second quarter of 2018 compared to the prior-year quarter. The U.S. Consumer segment operating income was $6.5 million for the second quarter of 2018, compared to operating income of $21.1 million for the prior-year quarter.
Florist Segment
Florist segment revenues for the second quarter of 2018 decreased 9.5 percent to $39.9 million, compared to $44.1 million for the second quarter of 2017. According to the release, “This decrease was primarily due to lower order-related and online services revenues and lower products revenues, primarily related to a planned reduction in container offerings and related pricing and a decline in technology system sales.” Average revenues per member decreased 2.7 percent to $3,873 for the second quarter of 2018, compared to $3,981 for the prior-year quarter. Florist segment operating income was $10.8 million, or 27.2 percent of segment revenues, for the second quarter of 2018, compared to $12.2 million, or 27.8 percent of segment revenues, for the second quarter of 2017.
International Segment
International segment revenues for the second quarter of 2018 increased 6.6 percent to $31.1 million, compared to $29.2 million for the second quarter of 2017. According to the release, “On a constant currency basis, international segment revenues were relatively stable.” Consumer orders in the International segment increased 3.4 percent, partially offset by a 5.2 percent decrease in average order value, on a constant currency basis. International segment operating income was $2.7 million, or 8.7 percent of segment revenues, for the second quarter of 2018, compared to $3.1 million, or 10.5 percent of segment revenues, for the prior-year quarter. On a constant currency basis, international segment operating income decreased $0.5 million, or 16.7 percent, for the second quarter of 2018 compared to the prior-year quarter.
