Floral firm FTD Companies (FTD 18.78, -4.61 -19.7%) is getting crushed today, down now to near four-month lows, after reporting Q4 results and guiding FY17 revenues in-line with market expectations.
Simply put, the company missed street views, as adjusted earnings per share of $0.49 and $280.7 million were not what the market was expecting.
The company noted that changes in foreign currency exchange rates negatively impacted Q4 revenues by $7.8 million. The decrease in consolidated revenues was due to decreases in revenues in the Provide Commerce and Consumer segments. Revenues in the Florist segment and the International segment, excluding foreign currency fluctuations, for Q4 were relatively flat compared to the prior year period.
In the Provide Commerce segment, revenues for Q4 were lower by 2.9% to $139.0 million compared to last year due to a 1.5% decrease in consumer orders and a 1.4% decrease in average order value to $37.09. The decline in segment revenues was due to a decline in the ProFlowers business of 16.5%, and partially offset by increases in revenues in the Personal Creations and Gourmet Foods businesses of 7.0% and 3.2%, respectively, compared to the last year.
Revenues in the Consumer segment were down 7.5% to $70.5 million, compared to $76.3 million a year ago due mostly to a 7.9% decrease in consumer orders, and partially offset by a $0.19, or 0.3%, increase in average order value to $71.05.
FTD’s Florist segment posted Q4 revenues of $39.9 million, relatively flat compared to a year ago. Operating income in the segment was $11.7 million, or 29.3% of segment revenues, for the fourth quarter of 2016, compared to $10.8 million, or 27.2% of segment revenues, for the fourth quarter of 2015. Average revenues per member were up 6.0% to $3,550 for Q4, compared to $3,348 last year.
Lastly, International segment revenues were $35.9 million in Q4. On a constant currency basis, International segment revenues increased 1.3% or $0.6 million driven by a 2.4% increase in average order value to $41.67 for the quarter, partially offset by a 1.5% decrease in consumer orders.
Looking ahead, FTD sees FY17 revenues largely in-line on a reported basis with the company's 2016 revenues of $1.12 billion, or up low single digits on a constant currency basis (using an average GBP to USD exchange rate of 1:1.21 as compared to the 2016 average exchange rate of 1:1.36).
In sum, year-over-year revenue declines in the company’s largest segments made for some underperforming results in Q4. Further, the company’s guidance doesn’t leave much to be desired either, as stagnant revenue growth for the year following a quarter with Valentine’s Day seems to be giving investors fits today.