San Diego, CA, May 7, 2003 - Proflowers, the largest
direct-from-the-grower flower company in the U.S., today further validated its
business model by announcing its most profitable and successful quarter to date.
The company reported revenues climbed 15% to $28.8 million for the period ending
March 31, 2003.
Bolstered by the strongest Valentine's Day sales growth in company history,
Proflowers also reported its net income for the quarter jumped 120% to $2.4
million from $1.1 million in the third quarter of 2002. Additionally, continued
emphasis on streamlining business processes resulted in a gross profit margin of
45 percent - an increase of 200 basis points from the 43% achieved last year
during the same quarter.
"This quarter proves Proflowers is here to stay," said Bill Strauss, Chief
Executive Officer of Proflowers. "Since launching our business five years ago,
we've established a strong foothold competing against more established
companies. We'll continue to gain ground by relying on our core business -
offering fresh flowers at a lower price."
The company attributed its higher profit margins in part to its
direct-from-the-grower business model. Since its founding in 1998, Proflowers
has developed a compressed supply chain model that allows its network of grower
partners to drop ship large quantities of fresh flowers at farm-direct prices.
Additionally, Proflowers' strong reliance on the Internet means lower costs and
overhead; during the third quarter 90 percent of orders were placed online.
Repeat customers placed 43 percent of the quarter's orders, while revenue
generated per order increased 6 percent, from $50.00 in 2002, to $53.00 in 2003.
At the same time, the company continues to increase its customer base via strong
direct marketing efforts. Proflowers acquired more than 178,000 new customers
during the Valentine's Day period, an increase of 16 percent from last year.
"We're reaping the benefits of continued focus on quality and freshness in
our repeat business, which played a large role in this quarter's revenues,"
noted Strauss. "Our ongoing mission is to efficiently connect customers with
suppliers in the floral industry, and in doing so delight them with quality,
service and value."
About Proflowers
Proflowers, Inc., headquartered in San
Diego, California, is the largest direct-from-the-grower flower company in the
U.S. and the first flower retailer to offer a 7-Day Freshness Guarantee. Using
its proprietary supply chain compression solution for the floral industry, the
company offers customers an ever-growing variety of fresh, affordable flowers
and plants through its network of growers. The company's international presence
includes shipping capabilities to 30 countries worldwide. Proflowers earned
Forrester Research's number one PowerRankings in the Flower category in the most
recent two consecutive periods, ranking top in every category measured.
Proflowers was launched by Jared Polis in 1998.