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Harry & David parent reports profitable second quarter Tuesday Jan 31, 2017 at 8:03 AM Jan 31, 2017 at 8:55 AM Greg Stiles Mail Tribune @GregMTBusiness Gourmet food and floral gift purveyor 1-800-Flowers reported net earnings of $62.9 million for the fiscal second quarter. The Carle Place, N.Y.-based parent company of Harry & David reported per share earnings of 93 cents, up from 92 cents a year ago when it pocketed a $61.5 million profit for the Christmas gift-buying quarter. The company's revenue grew 1.1 percent, or $6.2 million, to $554.6 million for the quarter ending Jan. 1, from $548.4 million the previous year. However, CEO Chris McCann said the earnings fell short of expectations. “During the fiscal second quarter, we achieved consolidated top- and bottom-line growth in what was a challenging consumer environment throughout much of the holiday season," McCann said. The company's legacy floral line was strong, as was e-commerce growth in its gourmet food lines, including Harry & David. “These positive results were partially offset by slower overall growth at Harry & David, our largest brand in food gifting, which accounts for the majority of total revenues during the quarter," McCann said. McCann anticipated accelerated revenue growth during the next two quarters. “The second half of our fiscal year is dominated by our floral businesses, where we are seeing a continuation of positive top- and bottom-line trends," he said. In addition, we see a number of tailwinds that will benefit revenue growth, including the better day placement of the Valentine holiday and growing everyday gifting in our gourmet food and gift-baskets brands." The company said it attracted 1.3 million new customers. Approximately 3.1 million customers placed orders during the quarter, of which 58.4 percent were repeat customers. Powered by e-commerce expansion, gourmet food and gift basket revenue grew $2.6 million, less than 1 percent, to $436.9 million during the quarter, from $434.3 million Harry & David's retail store results didn't keep pace. The exact numbers were not disclosed.