FTD: Valentine’s Day Media Campaign Fell ‘Substantially Short’ of Expectations
Posted By: Mary Westbrookon: March 21, 2018In: Floral Industry News
FTD expects consolidated revenues for the first quarter of 2018 to be about $20 million below internal expectations — a shortcoming the company blames on “unfavorable performance from ProFlowers and Gourmet Foods due largely to media campaign investments that generated lower than expected sales.”
“For the Valentine’s Day holiday this year we took a different approach to media-based marketing in certain brands, and the results were substantially short of our expectations,” said John Walden, president and CEO of FTD.”
The campaign, which included national TV spots and digital placements on social media, YouTube and other platforms, encouraged consumers to “think inside the box” with the company’s “Perfectly Paired” collection — ProFlowers blooms and Shari’s Berries chocolate-dipped strawberries.
A company representative noted the shortfall was “offset in part by favorable sales performance in FTD.com, the Interflora and FTD Florist segments, and Personal Creations” and that “the vast majority of FTD.com orders are florist-filled with high average order values.”
“For the Valentine’s Day holiday this year we took a different approach to media-based marketing in certain brands, and the results were substantially short of our expectations,” said John Walden, president and CEO of FTD. “We will incorporate our many learnings from Valentine’s Day to inform our plans throughout this year and in the future.”
Walden called preliminary 2017 financial results “in-line with our expectations.”
“For 2018, our team laid out an ambitious, new five-year strategic plan focused on rebuilding winning customer brands, recreating a network of strong florist partners, gaining supply chain efficiencies and extending our business in complementary non-floral categories,” he said.
FTD announced this week that it will delay the release of its fourth quarter and full-year 2017 financial results. The company is currently in talks with its lenders and Liberty Interactive Corporation, its largest stockholder, regarding modifications to its credit agreement and other financing transactions.
Other Company Returns
At Teleflora, Kelly McKeone, vice president of consumer marketing and florist marketing, said the company experienced double-digit order volume growth this year for Valentine’s Day. “A Wednesday holiday coupled with strong consumer demand for hand-arranged bouquets drove order volume up by double digits from 2017,” she said. “An increase in florist-to-florist orders showed that our partner florists had a
great holiday locally. Partner florists with eFlorist’s services also experienced an increase in orders over last year.”
On average, BloomNation florists saw a 60 percent increase in sales this year and 50 percent more orders, said Farbod Shoraka, the company’s CEO and co-founder. “BloomNation as a whole grew 55 percent from last Valentine’s Day,” he said, adding that 190 of the company’s florists experienced a “change of 100 percent or higher, year over year.” Look for updates on holiday results from additional national companies in future issues of EBrief.