Harry & David’s parent company, 1-800-Flowers.com provided better insight into its performance in a government filing today.
Harry & David produced net revenue of $319.9 million and operating income of approximately $41.6 million during the first three quarters of fiscal 2015, Sept. 30-March 29.
The floral, food and gift company, based on Long Island, N.Y., said in a Securities and Exchange Commission filing, those figures don’t necessarily indicate results Harry & David would have realized had it continued to operate as a stand-alone company due to integration activities since it was acquired last fall.
Harry & David’s operating expenses declined by $14 million during the first nine months of the fiscal year. However, there was a non-recurring acquisition cost of $11.9 million and integration costs of $2.1 million.
1-800-Flowers has pegged the value of Harry & David’s goodwill at $38.6 million, primarily related to synergistic value created in operating costs and revenue growth opportunities, enhanced financial and operational scale, and other strategic benefits.
“It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce,” according to the filing.
Harry & David was instrumental in the growth of online and telephone sales orders to 2.722 million from 2.211 million during the quarter, and 9.233 million from 6.735 million during a nine-month period.