BloomNet wire service, the corporate sales and business-to-business unit of 1-800-Flowers.com Inc., was among the company’s better-performing units in the second quarter.

“Our total revenue growth for the quarter, while below our expectations, was supported by good growth in our Consumer Floral and BloomNet segments as well as e-commerce growth in most of our Gourmet Food and Gift Baskets brands,” 1-800-Flowers.com CEO Chris McCann told analysts on the company’s quarterly earnings call Tuesday.

BloomNet sales increased 4.2% to $20.50 million in the second quarter of fiscal 2017, from $19.67 million in the prior year period. For the first six months of the fiscal year, BloomNet sales edged up 0.6%, to $41.47 million from $41.22 million. The business segment’s gross margin for the quarter was 60.0%, compared with 56.9% in the prior year period, primarily reflecting product mix, the company reported.

BloomNet’s sales growth in the first half of fiscal 2017 came from several areas McCann told analysts. That includes “increasing order volumes, both from 1-800-Flowers and shop-to-shop florist orders, increasing product sales to our BloomNet florists and an expanding range of new customers, and a host of new digital marketing and advertising services,” he told analysts, according to a transcript of the call from Seeking Alpha. He did not spell out marketing and advertising services on the call.

For fiscal Q2 2017 ended Jan. 1, 1-800-Flowers, No. 137 in the 2017 B2B E-Commerce 300, reported:

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  • E-commerce sales, which include online and telephone orders of $420.6 million, up 2.0% from $412.3 million in the first half of fiscal 2016.
  • Total sales of $554.6 million, up 1.1% from $548.4 million.
  • Consumer floral sales of $97.80 million, up 3.1% from $94.83 million.
  • Gourmet food and gift baskets sales of $436.9 million, up 0.6% from $434.3 million.
  • Net income of $62.9 million compared with net income of $61.5 million in the same period last year.

The e-commerce segment includes websites for 1-800-Flowers, Harry & David, Fannie May candy, Cheryl’s cookies, The Popcorn Factory and Wolferman’s baked goods.

For the first six months of fiscal 2017 1-800-Flowers reported:

  • E-commerce sales, including online and telephone orders, of $527.7 million, up 2.1% from $517.0 million.
  • Total sales of $720.4 million, up 2.3% from $704.4 million.
  • Consumer floral sales of $173.0 million, up 3.1% from $167.8 million.
  • Gourmet food and gift baskets sales of $506.7 million up 2.2% from $495.9 million.
  • Net income of $47.2 million compared with net income of $56.0 million in the same period last year.

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