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Thursday, April 1, 2010

1-800-Flowers.com (FLWS) Fodder - Where Do They Come From?

We previously shared our positive view on 1-800-Flowers.com (FLWS). Two months back we came across the below Youtube video featuring CEO Jim McCann on "Where Do 1-800-Flowers.com Flowers Come from?"

Here are some additional insights we gleaned from the company:
  • Approximately 75% of 1-800-Flowers.com floral gifts are fulfilled by independent BloomNet florists, which is the primary floral gift focus area (*we note that floral segment gifts represents just over one half of the company's total revenue).
  • The farm in the video is both a partner in 1-800-Flowers.com's direct ship business as well as a wholesaler of flowers for BloomNet florists, as are most flower farms in the U.S. and South America.
Happily, we were able to acquire more shares of the company around, and even below, $2.00 in February. We're looking to add more shares to our position with patient capital.

Jeffrey Walkenhorst

Disclosure: long FLWS.
© 2010 Jeffrey Walkenhorst
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