Question-and-Answer Session
Operator
(Operator instructions) We’ll take our first question from Jennifer Watson from Goldman Sachs.
Jennifer Watson – Goldman Sachs
Thank you. Can you talk a little bit about where the bulk of the OpEx leverage is coming from? Are you guys benefiting from adding on these acquisitions and being able to take a lot of costs out of the acquisitions and essentially drive the revenue growth of these businesses once you combine them on the 1-800-FLOWERS platform and how you think about that going forward?
Jim McCann
Sure Jen. The answer to that question is with this acquisition, no. We really didn’t achieve a great deal of leverage in that business because of being able to put them on a platform business with incremental minor gains in that. What you are seeing from an OpEx point of view is continuing management of the acquisitions we have made in the past, the growth we have experienced in different businesses, the businesses we have created all of those continue to give us frankly increasing opportunities to improve our operating expenses. But I would not look to the – in normal circumstances, we expect to get some operating leverage because of the nature of this business we bought Design Pac Gifts to use it as a platform to grow our direct-to-consumer business, so there really was not a lot of synergistic savings in that acquisition.
Bill Shea
(inaudible) As we have been speaking about our OpEx ratio for a while now for the last couple of years, what we did is we went out and what we stated was we had assembled a lot of the pieces we wanted for our business going forward into the future and now we have kind of optimized that. We have been continually doing that. Now we are started to tweak our operating model and drive more efficiency. To mention that acquisition as an example that adds our operating capabilities and all of our other brands will be able to leverage going forward into the future.
Jennifer Watson – Goldman Sachs
Okay great, thank you. Just one more if I may, can you talk a little bit of the trend you are seeing to date in October and how if at all a shorter shopping period between the Thanksgiving holiday and the Christmas holiday, so I guess fewer weekends for parties, etc may affect your business and how you have taken that into consideration in your guidance?
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