Harry & David reported a 4.3 percent gain in fiscal second quarter 2013 revenue of $254.8 million and net income of $41.7 million during the pivotal holiday sales period.
Updated 12:15 p.m. Harry & David Holdings reported increased revenue and profit during its pivotal holiday sales period, the second Christmas season since the Medford-based gift and gourmet food company emerged from bankruptcy protection in September 2011.
In its fiscal second quarter that ended Dec. 29, Harry & David saw revenue climb 4.3 percent to $254.8 million from $244.3 million a year ago. Net income rose 23.4 percent to $41.7 million from $33.8 million a year ago.
The company carried a $72.1 million cash balance into January and had $98.5 million available on its credit line.
“Despite a much tougher holiday selling environment than expected, we are especially pleased with the significant growth in our customer file as it validates the return of the business to a growth trajectory,” Chief Executive Officer Craig Johnson said in announcing the results. “Significant gains were made in web traffic, market share.”
He said website enhancements and display changes for mobile and tablet sites contributed to the improved results.
For the quarter, Harry & David’s direct marketing — catalog and online — sales grew by $14.8 million, or 7.4 percent, from the prior-year period. Orders increased 12.4 percent, driven by improved web traffic and higher response rates.
The company stores saw a year-over-year revenue decrease, directly related to the closure of 13 stores in the past year. The $32.5 million in sales was down from $35.9 million. However, same-store sales saw a 5.8 percent gain.
Wholesale revenue also fell to $8.9 million from $9.7 million. The company said the wholesale figures were diminished because earlier shipments pushed some sales into the first quarter.
Both the stores and wholesale arenas had gains over the first half of fiscal 2013 as the company saw revenue grow to just more than $288 million from $251.1 million during the first half of fiscal 2012.
— Greg Stiles
8:35 a.m. Harry & David reported a 4.3 percent gain in fiscal second quarter 2013 revenue of $254.8 million and net income of $41.7 million during the pivotal holiday sales period.
The company earned $33.8 million on revenue $244.3 million a year ago, just after emerging from Chapter 11 reorganization. The Medford-based gift and gourmet food company said its revenue gain was 5.8 percent when removing 13 retail stores, closed during the previous fiscal year from the equation.
Check back later for more updates.
— Greg Stiles