Q1 2020 Earnings Call
Good day and welcome to one 800 salaries Dotcom, Inc. This school 2021st quarter results Conference call.
Today's conference is being recorded after today's presentation, there will be an opportunity to ask questions.
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To withdraw your question. Please press Star then too.
Now let me turn this conference over to jump potatoes, Senior Vice President Investor Relations. Please go ahead Sir.
Hi.
Good morning, I thought you won't show what else are you discussed wind only policies like all things I actually was also a physical 2021st quarter.
Those are the most most she was called in your press release as she was only this morning leased Kodiak shows at the Investor Relations section about cool website at Www <unk>.
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I hope that they will begin with all the walks and everyone school to your questions presenting today will be Chris Mccann, CEO and Dolce CFO .
Well we begin.
Good morning, everyone that some of the statements that we will make today, maybe forward looking within the meaning of the private Securities litigation Huh.
And I'd be fall.
These statements involve risks and uncertainties that could cause actual results.
So materially from those expressed or implied in the applicable statements.
What do you still description of these risks and uncertainties. Please refer to a press release issued this morning, as well as a recipe borrowings, including the company's and report on Form 10-K , and quarterly reports on Form 10-Q .
In addition, this morning, we will discuss certain supplemental financial measures that were not prepared in accordance with generally accepted accounting principles.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the tables accompanying the company's press release issued this morning.
The company, especially disclaims any intention or obligation to walk in any of the forward looking statements made in today's call in accordance with today's call. A press release issued earlier today or any of US just filings, except as maybe otherwise studies by the company.
I'll turn the call it a Chris Mccann.
Good morning, everyone.
We've had a slow start to fiscal 2020 as I stated in this mornings press release results for the first quarter represent a continuation of the momentum that we built throughout last year, our revenues rose more than 10% and EBITDA improvement of nearly 19% reflects the benefits we are getting from the investments that we made.
Last year and continues to make this year, you know key Harry <unk>, David and one 800 flowers brands as well as it up on that business importantly, we achieved solid growth in revenues contribution margin across all three about business segments in call make food and gift baskets, we've moved their revenues nearly 18.
Driven by strong everyday gifting and Harry <unk>, David for such occasion to his birthday sympathy and thank you along with its new get well collection.
Growing customer demand for the Harry <unk>, David go it may line, including prepared meals and one for both gifting and entertaining that are attracting a younger shop in to the brand continued growth in one 800 baskets for direct to consumer guess everyday gifting as well as increased wholesale shipments for the holiday season.
And contributions from a new Sharis berries brand, which we acquired in mid August it's worth noting that we had the Schervish babies brand all caught a multi brand platform and helping customers deliver smiles literally within hours of having close on the acquisition. Since this is a real testament throughout cultural teamwork and a focus.
On execution <unk>.
The integration and development of this new business has been going well, we've been working without fulfillment partners to prepare for the upcoming holiday season, making changes to packaging and improving product quality.
We've begun to be weren't sharis berries messaging and marketing mix and testing into different marketing channels. Well. This is still very early we're encouraged by the customer interest and demand we are seeing.
You know floral businesses 100 flowers m. bloomnet, we're able to effectively leverage the investments we've been making an innovative marketing and merchandising programs to achieve solid growth in revenue gross margin and contribution margin during the quarter.
As a result, one 800 flowers further extended its market leadership position and Bloomnet continues to grow its market share. We expect these trends to continue throughout the fiscal year.
During the quarter Blue that's revenue growth was driven primarily by strong digital directory sales and increasing demand for our expanded line of wholesale products along with continued growth in order volume.
No one 800 flowers business, we launched the plant shop building on the strong growth that we are seeing implants for both gifting and self consumption. The plant shop features a new collection of on trend customer favorites of house plant and then expanded selection of succulents, we're quickly becoming a far.
During this fast growing category a favorite millennial customers. We also continue to differentiate and elevate our floral and gift offerings with now trending collections for the fall season, including rustic farmhouse, and pumpkin Spice truly original and exclusive designs that.
Hoping attract younger customers to a 100 flowers brand.
In addition to the strong revenue growth during the quarter. We also continued double digit growth in our customer file as well as solid growth in membership in our passport program and then multi brand customers as we've noted in the past. These are a best performing customers in terms of purchase frequency retention.
And lifetime value.
The strong growth in our customer file bodes well for us as we continue our momentum as we entered the key holiday shopping period.
Before I turn the call over to build for the financial metrics for the quarter I'd like to touch on a few of the initiatives. We've taken ahead of the holiday season.
The merchandising front, we launched our new cars with top line from the popcorn factory specially designed envelope shaved cause available uniquely curated sentiment printed on the outside and core may popcorn on the inside cards with pop a design for customers, who wish to express thus far.
With two Whitney and relevant sentiments for everyday occasions, cultural moments and holidays opened 999 shipping included.
Also off to a great start is the repositioning of our women's brand as Wolfermans bakery, featuring expansive assortment of exceptional baked goods for perfect for entertaining self consumption and gift and the new positioning reflects how wolfermans has evolved from a grand best known for its superstate.
English muffins, two full online bakery, offering sweetness and savory items big from scratch daily.
As a result of its repositioning ultimate is already seeing some of the best customer demand that we have experienced in awhile.
As we head into the season of sharing we've also wants to special collection of holiday gifts designed to benefit Smilebox, a nonprofit organization that is dedicated to creating meaningful jobs for individuals with developmental disabilities.
The holiday season, 20% of all net proceeds from this collection sales will be donated to smile phones.
[noise] in terms of innovation to enhance the customer experience. We recently completed the rollout of P. go the way technology across our brands significantly increasing sites speeds for our customers on their mobile devices.
We launched our new magic link capability, enhancing our customers sign and experience by allowing them to log into accounts with the single quick even if they don't remember the user name and password.
And we deployed new three D capabilities through a question of top products on the 100 flowers site.
Enabling customers to not only preview out products in three dimensions on both desktop and mobile but also see what the gifts will look like on a table or in a room bio augmented reality on this their supported mobile devices.
Looking ahead as we enter the key holiday period, we have strong momentum across all business segments. We continue to grow our customer files at a strong pace and our customer metrics continued to be strong and we have exciting new initiatives underway across the company designed to expand our product offerings into can.
Tim newly enhanced the customer experience.
As a result, we are well positioned to deliver strong performance for the holiday period and for the full fiscal year I'll now turn the call over to Bill Bill.
Thank you Chris.
As Chris noted, we have started fiscal 2021 very well.
And we are pleased with a strong topline growth and improved bottom line results first quarter.
But we saw strong local booked all three of our business segments I'll go make wouldn't gift basket segment achieved outsized growth.
This reflects the benefits from chose varies as while the timing of certain wholesale gift basket shipments, which in the past typically occurs in our second quarter.
Adjusting for these growth in this segment within the high single digits for the quarter, driven by strong growth and having David and 100 bed side.
Breaking down from highlights from our first quarter.
First in terms of revenues total consolidated revenues increased 10.5% to 187.3 million compared with 169.5 million in the prior period.
This was driven by 17.7% growth in the home equity gift basket segment, along with 6.7% and 6% growth respectively in the consumer flow and Bloomnet segments.
Gross profit margin for the period increased 30 basis points to 40.7% funding increases a 50 basis points and 130 basis points, respectively in a consumable and units segments more than offsetting a decline of 10 basis points and then we'll make wouldn't gift baskets.
In the improved gross profit margin because the combination of strategic pricing initiatives and more efficient use of promotional marketing programs, which helped offset higher costs associated with seasonal labor and towers.
Operating expenses improved 230 basis points to 51.7% total revenues, primarily reflecting the strong revenue growth in the period.
As a result of these factors, we improved our adjusted EBITDA by 18.6% or 2.6 million to a loss of 11.3 million for the core.
Our net loss for the period also improved nicely to 15.3 million or 24 cents per share compared with 17.3 million 27 cents per share in the prior year period.
And to our balance sheet.
Cash and investment position was 34.29 at the end of the first quarter.
Inventory was 172.5 million, we have an inventory of 160.7 million at the end of last year's first quarter.
The increase in inventory supports our growth and includes the decision to by certain inventory early ahead of expected tariff increases as well as the strategic prebuilding or some inventory for the holiday season.
As we've noted in our past calls this strategy allows us to use our core workforce during the slower summer months to somewhat mitigate the headwinds associated with a tight market seasonal labor and writing hourly wages.
Tens of debt, we had 95.8 million outstanding on our credit facility, we view of borrowings horrible.
Regarding guidance, we are reiterating our guidance we provided at the beginning of the current fiscal year.
Our guidance also includes certain timing issues in particular, the shifting of several million dollars in wholesale basket shipments into our first.
Fiscal quarter.
Which will reduce the total wholesale shipments and a current fiscal second quarter.
As a result, our guidance remains as follows.
Total consolidated revenue growth for the full fiscal year, 8% to 9% consisting of 6% to 7% organic revenue growth combined with the anticipated contribution from Sharis berries.
Adjusted EPS growth for the year innovation eight mpus.
And free cash flow for the year of approximately 45 million.
I'll turn the call back to Chris Thanks.
So to sum up we've had a strong start fiscal 20.
Results for the first quarter represent a continuation of the momentum that we've built throughout last year and beyond.
We are seeing the benefits of the investments we've been making in marketing and merchandising programs in the form of strong revenue growth and increasing EBITDA and EPS driven by all three of our business segments, we're continuing to invest in innovative technologies that help enhance customer experience, resulting in growing.
Customer engagement and we are continuing to grow our customer file across the enterprise along with increasing membership in our passport program and in customers buying from multiple brands as a result, as we head into the important holiday season, we are well positioned to continue our momentum and deliver strong revenue growth.
And enhance bottom line results I'd like to take a minute to thank all the team members of our company. We delivered these results for Q1 and for all the planning that has positioned us so well to continue this momentum into Q2.
With that we'd now like to open the call for any of your question. So short tail could you. Please repeat instructions for queuing it.
Thank you [laughter] began the question answer session.
Ask a question you May press Star then one and you had touched downtown.
[laughter] Speakerphone, please pick up your hands that that's what passing the keys to withdraw your question. Please press Star then Tim.
This kinda like little upon momentarily to assemble the questionnaires.
[noise] [noise] [noise] again.
Turning to ask a question.
Oh, that's question one compound that God kindness that benchmark company I've seen.
Thanks, Good morning, Nice nice quarter, guys, Chris look I think you know not not to too much alter your words, but it sounds like your share gains or get you expect will continue after all the investments you've made and yet in the quarter you had pretty nice.
Leverage, which I think was a little bit of surprise you. There's been a lot of rumors and expectations out there you know for Nexus took over FTD stuff. They still have a CEO . So if you could just kinda talk to the competitive environment, you're seeing now in this quarter and going into the holiday period I appreciate it.
Great. Thank you for recognizing a share gains that we can choose showing some leverage.
Yeah, as we look at the competitive landscape across the categories that were and we really haven't seen any changes whether on the gourmet food side on the floral side of it Q1, we wouldn't expect to see that but we really haven't seen any change in the competitive landscape and I think as we look at that we continue to really you know the share gains that way.
Getting continue to be because about relentless focus on on what we do well focus on building out brands and what out brand stands for enhancing and.
Investing in enhancing the customer experience green new product extensions to the table like the plan shop, the on trend floral bouquets that we've talked about so it's really a combination of all this is helping us to build out customer file and as we do that it gives us great confidence that will this momentum will continue no matter what the competitive if.
Simon do.
And if you keep in mind in the past we've been in a very competitive competitive environment, especially on the floral category and we've continued to do well increasing our margins along the way a growing market share. So even in a rational spent market we've done well and if the market becomes a little bit more rational we think that.
Both even better for us.
Got a great and then I don't know if this is for you, chris or or or for bill, but just there is one last week you know what happens when every six years or seven years, but you know there's one less week. This holiday period, just how are you thinking about the impact I know that's embedded in your guidance. If you just help us think through how you guys are plenty for.
You know logistics and how you expect order demand to be impacted by that.
Yeah sure as you pointed out that is embedded in guidance and we certainly we've gone back to you as password that's been the kids two to do our planning. It does affect you know how we go to market a little bit differently changes some of the timing about marketing initiatives trying to move things up a little bit or some early order incentives that will give our customers trying.
To get orders in a little bit earlier get the holiday season going before Thanksgiving a little bit you know so putting some emphasis there bill you want to talk to you been intimately involved in the planning on the logistics side of things. Yeah. We worked very closely with you know with Fedex or major small package delivery our partner out and when you know we have a.
Plan in place to forward deploy more inventory closer to consumer it help save on Oh, we have ever heard of interest each year help save on small actually because I would also get says you know the part of closer to the consumer. So we can ship later later in the year also work with you know cracks on the number of Hot you know kind of a direct truckloads, let me put into their you know.
Into their hubs. So again, we can just kinda react very quickly to the laser demand that's happening this year. So to your point Dan. If you know there's been a six flat shopping days has an impact on both foreign and I think we've addressed that we've built that into you know it came to the guidance that we have and operationally would've been not isn't working with our partners to address.
I think we feel very comfortable on that.
Alright, perfect. Thanks for the color guys I'll get back in queue and congrats again.
Okay.
Okay.
Thank you Kim next question will come from Michael Kupinski Mobile capital markets.
Thank you and congratulations on your quarter very good start to the year.
Can you can you talk a little bit about what might have changed at all there last quarter in terms of the competitive landscape I know that you indicated that there were some heightened costs for search words and things like that I was just wondering if there's anything that.
May have changed in the last quarter, particularly.
Yes. Thanks, Thanks, Michael I would say no. There's no real change again Q1 is that a big quarter, where we would expect to see much change you referenced to know search terms going up and that's just a kind of general market condition not necessarily come to our competitive set or so in Q1, we haven't seen.
Any real change in the competitive landscape, whether it be on the flow side about business on their call may food side or in some of the general gifting products that we're moving into a and again what we see is a continued engagement with our brand people responding well to the new product offerings that would bring out that's why we highlighted the plan should that's been doing.
Great for Us, it's why we highlighted the Harry <unk>, David Gourmet line, which is doing fantastic for us, especially helping us to attract the younger demographic customer responding well enough digital marketing campaigns. So as we look it really kind of especially to short term as we really look focused on Q2 as we're moving into it.
We think we're really really well positioned but beyond that as well.
Gotcha and consumer core business can you talk a little bit about volume versus pricing maybe.
Sure I'll has built to cover that but pretty straightforward yeah. It really is all volumes or is it really hasn't been much change in our A.O. lease so the.
6.7% goal that you saw in consumable is really driven by volume.
Gotcha and in doing that I can you talk a little bit about the number four senior network has that been increasing and I'd just like maybe if you can provide that year over year, what what that.
What that looks like.
Yeah, So yeah I'll take that as we've said for a long time now bloomnet, we're not looking to really grow the memberships threats stays in that five to 6000 range.
And get some churn in the you get it just new members coming and we've seen a some success in new members coming into the networks coming from the S.T.D. network into Bloomnet.
So we've seen that during the past.
Three to six months I would say, but really that's off the stays fairly stable and what's being important for us is really other than the last year as we've moved or the volume into bloomnet that deepens. The relationship we have those bloomnet members and then we start to really utilizing basically out of that relationship gets us more more.
Sales into our wholesale products the marketing services like digital directory some of the search marketing services wholesale products I mentioned and that's what we saw this quarter. So chronologically that's what we expect bring the order then deepened the relationship start to sell products and services into those relationships, yeah, I mean ultimately.
You know the Bloomnet model and what we've outlined over the last couple of years is that we want to continue to drive you know ultimately contribution margin within within that it was going to initially come from you know.
The large increase in orders that we started at the end of fiscal 18 kind of ran through fiscal 19, and now we're comping against those and that was that drove that a large topline growth had some impact on our gross margins last year now is the second stage.
That is to monetize monetize those or what is it was Chris references seeing increases in kind of that digital directory that was selling seeing increases in in wholesale. So now we have gross margins moderating revenues coming down a little bit, but we still think we will have very healthy and topline growth and oh wait within bloomnet.
And still driving incremental margin dollars, an incremental contribution margin.
We're still seeing some order growth there as well so.
Good position.
And in terms of the wage pressures that you were talking about I know like last year, you indicated that you had heightened issues with seasonal help from Mexico.
And given the political rhetoric rhetoric that was going on has had that kind of stabilized or is that improve somewhat or can you just kinda give me some ideas what what's happening there.
Turning to fill wanting to touch on the live beside everywhere in a good position right now we'll talk about the seasonal labor, we feel give a little more flavor on that.
So obviously, we we hire a large number of seasonal workers and you know labor like most businesses.
What are you willing was a tight labor market and rising labor costs, we certainly have had to increase our labor wages.
We also lots of programs both in season and and beyond the two to retain and attract that seasonal workforce. We won five discounts special sweepstakes retention bonuses bus passes meal passes et cetera.
To kind of doing that has as much of that seasonal labor points back you know you know year after year, we've talked about strategies to lessen our dependency on that seasonal labor why pre building inventory you see that at the end of Q1 with our inventory up.
In Q1 issue over where it was you know a year ago, we continue to invest in automation initiatives, whether it be warehouses are manufacturing our distribution centers, what's really important to note here is there's really two aspects of Oh, you know a label one can you get to lever and to what is it.
What's it called once it costs you well.
We were very successful in getting the label, we haven't lever that we need to execute against the holiday season. So that's that's critical to it is costing US more you know more dollars this year to get that labor, we've built that into the guidance that we've.
Gotcha and then final question regarding the are you indicated that you're kind of each week.
And did some extra marketing I noticed that I'm getting a few more catwalks from some of your other brands that I had before is that part of the marketing strategy. I was just wondering if you can maybe talk a little bit about.
The movement there on the catalog side.
No I would say, you're probably going from catalogs, maybe because you've been purchasing from some of our other pressures.
How does that also that [laughter] [laughter], we'd additive in increasing our spend on catalog Mark I mean, if anything we've been continually decreasing spend on catalog marketing, especially on this prospecting side of things and more that's money and spend is going to digital marketing we've been talking about the success, we've been having Evan how we're moving.
There are more Harry <unk>, David into a digital marketing entity and Thats working real well for us So there's soldiers.
Well I would not spending more money into catalog marketing with migrating more and more the digital marketing, where we're able to see better returns and also better flexibility in short term responsiveness as we see what the mark how the market develops in any given season.
Alright. Thank you that's all I have thank you.
Thank you Mike.
Thank you very much and next question will come family Gander Mountain lines, there D.A. Davidson.
Yes, Hi, I'm congratulations on a good quarter. So I was wondering about the cadence of sales for series berries, you know it sounds like it was a couple of million in the quarter, a Christmas quarter would be maybe a little bigger like 4 million, but then the biggest wouldn't be the.
Arts and Jim quarters, maybe 10 million <unk> is am I in the ballpark range on that it can you comment at all on the cadence for series Mary and just confirm that it's being recorded in consumer floral is that correct.
Sure I'll ask built to kind of cover the cadence and where it's being recorded but again as I stated in my opening remarks, we're very pleased to show is there's you know it's also good start and then as you point out when doing and move to what it's going to be a smoke low quarter anyway, but we only acquired in mid August it when the process of getting it up and running it's a contributor really too.
The overall momentum that we have of the trend into half almost 11% growth for the quarter or and what we're seeing in the gourmet food category what was seen across all three about businesses. So what we do is really can we have to celebrate Tory ecosystem. This platform that we've built and we look for businesses like that you'll continue to see us through this that can we.
You can talk in nicely leverage the platform and contribute to our overall growth rate movement as this quarter up above 10% growth. So you know strategically that's what we're looking at doing bill any more color on the specifics.
Yeah, well first lender is captured within Mccormick wouldn't gift basket segment, so it's not even smaller flawless as.
As you asked.
That within that was a contributor to the overall, almost 18% growth and coming from gift baskets, but about half of what you.
Indicated for the first for you know first quarter more closer to about $2 million in them and in the first quarter again, we've only owned it for about six weeks and in the first quarter. The cadence will Inc. will increase of Q3 in Q4 with Alan and especially Q3 Valentine's day is the is the biggest corner who are sharing.
If the shows and it's probably in that and the bulk of what you're what do you have indicated.
At about $10 million so for that.
For that quarter.
Okay.
Thanks, and then.
Okay. Just this idea of the one fewer or the six days fewer shopping days before Christmas is is there some kind of a positive effect just in the sense that people might get caught short they didn't get to the store forget and they would turn to online gifting and maybe some of your product categories.
The last minute effect because there are fewer days is there any kind of a bolus argument to be made for the calendar. Thanks.
Oh, we love for you the make that arguably more often I'm not sure that we historically could say, we see that as we look at baking today and we look historically would have results to bake into our plans I wouldn't say, we see that I would agree with the general overall.
Clearly the that people will turn into online shopping more.
And I and certainly our food brands and you will benefit from that I think so I'll I'll hope along with you.
Okay and then.
We had heard something a little.
That out there about that Nexus actually kind of close down the dropship portion of pro flowers, and it's all being florist fulfilled.
Can you confirm that or not and then what does that mean for you because that creates some kind of new opportunity maybe for share gain in the dropship segment of the market and when do pursue that aggressively.
Just maybe comment on that whole situation. Thanks.
So I wonder what I would say over the prior to the transaction into bankruptcy court. The all the management of SPD had really shut down the proflowers business completely and moved to all into a FTD direct a flawless fulfilled product or then what we saw coming out of the trends.
Actually a little bit was a moderation of that wed.
I think it on may not be completely up to speed here or is that right. Now if you went to the pro flowers sites is probably a mixture of some direct ship product as well as far as fulfilled product and that seems to be the direction going forward, but again.
Well, we've seen is no real change so it's hard to understand I don't know if there is a direction going forward yet that we've seen in the marketplace, but what we have seen is that the site is representing both direct ship and floors fulfilled items.
It reflects the us I mean, that's not going to impact what we do without plants I think we have a really good model in place of how we utilize both direct ship and flawless fulfilled product and our primary channel is and always always has been to support our bloomnet florist. It really use the same day delay.
Liberty capabilities that we have in the florist network to get a great quality great designed products. So again, because we look at Bloomnet Bloomnet is yes, they provide us with great same day fulfillment capabilities, but they provide us also with great design capabilities into design councils that different bloomnet members belong to a different times that's there.
Real benefit to this category here did not it's not just for hours in a box.
Okay. Thanks, so much.
Thank you Linda.
Thank you very much again, ladies and gentlemen, as a reminder, you went by to ask a question you May Press Star one on your telephone keypad now.
Next question about comes on the Amex Berman.
Craig Hallum capital Grant.
Hi, guys. Thanks for taking my question I wanted to ask about the passport program now that we're getting into the holiday season are getting close to it can't can you talk I saw it to us a little bit about the typical lifestyle or they passport customer I'm curious you know what types of your which holidays are really when you get.
Those customers to sign up for passport and then similarly curious when the passport customers have really been transacting and and specifically you know when have you see those those incremental transactions from the passport customers is it more you know during your slow periods. When you when you get a nice lift from perhaps some self consumption.
For most people are or is that you see that perhaps there they're coming back you know more often or with larger tickets during the holidays.
Oh, great Alfio passport program, working very nicely for us and and we plan to confuse the continued growth of that program.
Your first question about when do we see more sign ups naturally it's around the different holiday spikes that we have because it just from the sheer volume of traffic of customers coming to us I didn't see any opportunity to sign up enjoying the passport program as far as when do we see the spend I would say, it's more of a year round didn't spend because.
Passport those is increase to purchase frequency or we go from an average lets say maybe of Oh. The two times. So your average customer to you know four or five times when they join passport they become multi brand customers. So there was a big feeding into the everyday occasions.
And not just the key holiday seasons, so really helps around things out for us and the more we grow that program. The more would you know not only drives that frequency of usage, but clearly with their frequency of usage comes retention come to increase lifetime value.
Great. That's that's really helpful. And then you know one other thing I wanted to ask about it if I'm not sure how long you've necessarily been been offering this but certainly seems that on your website theres been a lot more marketing lately about same day delivery I'm you know if you order before to be M is that something that you're gonna be able.
The offer throughout the key dates during the holiday season, and just curious if you could talk about what your expectations. There ready any color you could give us on how much. The same day orders have have impacted your recent results.
I think it's.
You know, it's it's just a focus so it's an expansion of our focus on constantly enhancing the customer experience and the whole speed of delivery is a critical factor that there was a flow you are losing the flow business. We have really good expertise in same day delivery understanding a cost of that capability moving that into delivery within certain certain.
In a time zones within a two hour time zone, and wanting delivery NAFTA, new delivery et cetera, so constantly pushing that needle with that both without florist network and then also working with other delivery services that we've worked with over the years, but door dash and others.
So we're constantly pushing the envelope on that I would say I wouldn't say it has factored into a really driving our results because we've been in the same day delivery. It's a continuation of that I think that would be a longer term play really as we start to move other products into the next day same day delivery capability.
Okay. That's really helpful. Thanks very much.
Thanks, Alex.
Thank you Kim next question I'm fan.
Anthony Lebiedzinski from Sidoti and company.
Hi, good morning, and the thank you for taking my question. So I may have missed this but the what was the impact of the gift baskets shipments so that that shift that you called out the NGL GB HM between the quarters.
Yeah. It was.
Several million dollars, so probably give or take $3 million I'll pull forward from Q2 into into Q1 to slide you know given some context that you know 17.7% growth within GGB without that still would be you know you know although team on a growth rate in the in the corner at.
And our you know tenant have to think both in the quarter, we still have been over 9% growth in the core about $3 million.
Got it Okay, and obviously you know you had a very strong first fiscal quarter very good start to the year. You mentioned that you haven't really seen much in terms of changes in competitive landscape in the quarter I know its.
Not of the quarter to begin with but as you roll into the big.
Second fiscal quarter for you guys do you anticipate.
The competitive landscape to change and and is that a reason why you did not change your guidance for the full year.
So all come and I think that's specifically as a reason why we haven't changed guidance interest we wouldn't change guidance. After Q1 was Q2 seen such a big quarter for us.
Really but as we look at a competitive landscape. Our expectation is was the continuation of what we've seen in the past.
Christmas holiday will be a promotional holiday.
It always is and we're well positioned to to work within that environment and continue to grow at the momentum that we are seeing right now so nothing different from what we've seen in past holidays and again could you be mud. This quarter. This holiday season is really driven by the food brands, which were not seeing no any change at all.
Really on the competitive front, yes, I think this was due to a couple of will comment on the overall on the overall guidance.
Obviously, we're very pleased with where we are all will be achieved in the first quarter and the momentum of hiring into the second quarter, but as Chris references So Q1.
You know is our smallest quarter and Q2 is by far along a lot. This quarter I think we've said this up on a number of occasions that it's really best I look at the company into has looked at the first half of the youngest Q1 really is kind of the feeder a into you know into Q2 s looking at the first half of the year.
In total and then looking at the second half the year, which becomes more fall because the shift in eastern.
You know looking at those on a on a combined basis. So as a result, you know when adjusting guidance at this point in time as we did last year when we get through the first half of the year well, we assess where we are and how performance was and we'll adjust the guidance or you know you know on next call you know.
Based upon based upon the results.
Got it. Thank you for that clarification, then just just wondering if.
If you could provide a comment as far as we look.
Overall impact from the flower gatherers like like from you flowers for example.
How does that it.
Or your thoughts on that or just impact on your business.
So as we go too.
I answered in the floor, Alaska, specifically can you talk about it and other competitors on the floor is like a from you or any of his so they're good customers are bloomnet.
We have very good relationships with those with those players we provide them great support and again a good supporters of Bloomnet. So we we thank them for that business. We also compete with them on the consumer side of things.
It's an interesting relationship that we have for one that works very well so.
So we're very happy to work with partners like that.
Helping to grow overall business.
Got it and lastly, as far as the tariff impacts the is it still about $5 million for fiscal 20.
[noise], Yes, Anthony I mean, I think we will be kind of who the number out about how August stuff all that the impact biggest piece and the impact in last year's tires, we were able to mitigate a lot of last year's Harris last year, all by pulling inventory in internally, obviously as those raw.
Roll into you know you know fiscal 20, Oh, yeah, we have to buy the inventory than we have the September inherently a pull the towers that have thought that out and in some do we have into hard and then we have the December tariffs that who knows where where that's going to be I think if you add it all up the impact on all was a whole that would be five.
US five plus million, we have done some things this year to help minimize some of the current year tariffs I again, you saw the the higher balance a high inventory balance at the at the end of September this year versus year ago. Two plays there one we did bringing some inventory early.
To avoid the tariffs I will then as you know that were contemplated for September and October and we all producing more inventory to you know to address the you know the seasonal labor.
Bottom line is you know probably in excess of 5 million overall based upon the tariffs that are currently out there and expected to be implemented in December we've been able to mitigate bottom that through quite some price increases about wholesale side of our business as well as in the direct consumer side of the business, especially last year's tariffs.
Got it alright, well. Thank you so much and best of luck.
Thank you it.
Thank you very much. This now concludes that question answer session I went back to turn the conference back over to Chris Mccann for any closing remarks.
Well. Thank you again for joining a says you can see we have good momentum coming into the next quarter for us when we're looking we're sitting in a good position. We've got good response growing customer files.
Thank you for your interest in your attention and for joining us on the call today.
We would like to wish everyone, a hot happy Halloween and we encourage you to visit our all star family of brands early and often for the upcoming holiday season. Thank you.
Thank you very much ladies and gentlemen. This now concludes today's conference you may disconnect from mine and had a great rest a week. Thank you.
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