| 1 800 FLOWERS COM INC Item 1A Risk Factors 11 Item 1A Risk Factors Cautionary Statements Under the Private Securities Litigation Reform Act of 1995 Our disclosures and analysis in this Form 10-K contain some forward-looking statements that set forth anticipated results based on managementapstas plans and assumptions |
| From time to time, we also provide forward-looking statements in other statements we release to the public as well as oral forward-looking statements |
| Such statements give our current expectations or forecasts of future events; they do not relate strictly to historical or current facts |
| We have tried, wherever possible, to identify such statements by using words such as "e anticipate, "e "e estimate, "e "e expect, "e "e project, "e "e intend, "e "e plan, "e believe "e and similar expressions in connection with any discussion of future operating or financial performance |
| In particular, these include statements relating to future actions; the effectiveness of our marketing programs; the performance of our existing products and services; our ability to attract and retain customers and expand our customer base; our ability to enter into or renew online marketing agreements; our ability to respond to competitive pressures; expenses, including shipping costs and the costs of marketing our current and future products and services; the outcome of contingencies, including legal proceedings in the normal course of business; and our ability to integrate acquisitions |
| We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions |
| Achievement of future results is subject to risk, uncertainties and potentially inaccurate assumptions |
| Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected |
| We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise |
| You are advised, however, to consult any further disclosures we make on related subjects in our 10-Q and 8-K reports to the SEC Also note we provide the following cautionary discussion of risks, uncertainties and possibly inaccurate assumptions relevant to our business |
| These are factors that, individually or in the aggregate, we think could cause our actual results to differ materially from expected and historical results |
| We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995 |
| Consequently, you should not consider the following to be a complete discussion of all potential risks and uncertainties |
| The Companyapstas operating results may fluctuate, and this fluctuation could cause financial results to be below expectations |
| In budgeting the Companyapstas operating expenses for the foreseeable future, the Company assumes that revenues will continue to grow; however, some of the Companyapstas operating expenses are fixed in the short term |
| Sales of the Companyapstas products are seasonal, concentrated in the fourth calendar quarter, due to the Thanksgiving and Christmas-time holidays, and the second calendar quarter, due to Motherapstas Day and Administrative Professionals &apos Week |
| In anticipation of increased sales activity during these periods, the Company hires a significant number of temporary employees to supplement its permanent staff and the Company increases its inventory levels |
| If revenues during these periods do not meet the Companyapstas expectations, it may not generate sufficient revenue to offset these increased costs and its operating results may suffer |
| 11 The Companyapstas quarterly operating results may significantly fluctuate and you should not rely on them as an indication of its future results |
| The Companyapstas future revenues and results of operations may significantly fluctuate due to a combination of factors, many of which are outside of managementapstas control |
| The most important of these factors include: o seasonality; o the retail economy; o the timing and effectiveness of marketing programs; o the timing of the introduction of new products and services; o the Companyapstas ability to find and maintain reliable sources for certain of its products; o the timing and effectiveness of capital expenditures; o the Companyapstas ability to enter into or renew online marketing agreements; and o competition |
| The Company may be unable to reduce operating expenses quickly enough to offset any unexpected revenue shortfall |
| If the Company has a shortfall in revenue without a corresponding reduction to its expenses, operating results may suffer |
| The Companyapstas operating results for any particular quarter may not be indicative of future operating results |
| You should not rely on quarter-to-quarter comparisons of results of operations as an indication of the Companyapstas future performance |
| It is possible that results of operations may be below the expectations of public market analysts and investors, which could cause the trading price of the Companyapstas Class A common stock to fall |
| Consumer spending on flowers, gifts and other products sold by the Company may vary with general economic conditions |
| If general economic conditions deteriorate and the Companyapstas customers have less disposable income, consumers may spend less on its products and its quarterly operating results may suffer |
| The Companyapstas business historically has focused on offering floral and floral-related gift products |
| Although the Company has been successful in its expanded product lines including plants, gift baskets, popcorn, gourmet food and wine, unique or specialty gifts, home and garden accessories, and childrenapstas gifts, it expects to continue to incur significant costs in marketing these products |
| If the Companyapstas customers do not continue to find its product lines appealing, the Company may not generate sufficient revenue to offset its related costs and its results of operations may be negatively impacted |
| If the Company fails to develop and maintain its brands, it may not increase or maintain its customer base or its revenues |
| The Company must continue to develop and maintain the 1-800-FLOWERSCOM brands to expand its customer base and its revenues |
| In addition, the Company has introduced and acquired other brands in the past, and may continue to do so in the future |
| The Company believes that the importance of brand recognition will increase as it expands its product offerings |
| If the Company fails to advertise and market its products effectively, it may not succeed in establishing its brands and may lose customers leading to a reduction of revenues |
| The Companyapstas success in promoting and enhancing the 1-800-FLOWERSCOM brands will also depend on its success in providing its customers high-quality products and a high level of customer service |
| If the Companyapstas customers do not perceive its products and services to be of high quality, the value of the 1-800-FLOWERSCOM brands would be diminished and the Company may lose customers and its revenues may decline |
| A failure to establish and maintain strategic online relationships that generate a significant amount of traffic could limit the growth of the Companyapstas business |
| Although the Company expects a significant portion of its online customers will continue to come directly to its Website, it will also rely on third party Web sites, search engines and affililates with which the Company has strategic relationships for traffic |
| If these third-parties do not attract a significant number of visitors, the Company may not receive a significant number of online customers from these relationships and its revenues from these relationships may decrease or remain flat |
| There continues to be strong 12 competition to establish or maintain relationships with leading Internet companies, and the Company may not successfully enter into additional relationships, or renew existing ones beyond their current terms |
| The Company may also be required to pay significant fees to maintain and expand existing relationships |
| The Companyapstas online revenues may suffer if it does not enter into new relationships or maintain existing relationships or if these relationships do not result in traffic sufficient to justify their costs |
| If local florists and other third-party vendors do not fulfill orders to the Companyapstas customers &apos satisfaction, customers may not shop with the Company again |
| In many cases, floral orders placed by the Companyapstas customers are fulfilled by local independent florists, a majority of which are members of BloomNet |
| The Company does not directly control any of these florists |
| In addition, many of the non-floral products sold by the Company are manufactured and delivered to its customers by independent third-party vendors |
| If customers are dissatisfied with the performance of the local florist or other third-party vendors, they may not utilize the Companyapstas services when placing future orders and its revenues may decrease |
| If a florist discontinues its relationship with the Company, the Companyapstas customers may experience delays in service or declines in quality and may not shop with the Company again |
| Many of the Companyapstas arrangements with local florists for order fulfillment may be terminated with 10 days notice |
| If a florist discontinues its relationship with the Company, the Company will be required to obtain a suitable replacement located in the same geographic area, which may cause delays in delivery or a decline in quality, leading to customer dissatisfaction and loss of customers |
| If a significant amount of customers are not satisfied with their purchase, the Company will be required to incur substantial costs to issue refunds, credits or replacement products |
| The Company offers its customers a 100prca satisfaction guarantee on its products |
| If customers are not satisfied with the products they receive, the Company will either replace the product for the customer or issue the customer a refund or credit |
| The Companyapstas net income would decrease if a significant number of customers request replacement products, refunds or credits and the Company is unable to pass such costs onto the supplier |
| Increased shipping costs and labor stoppages may adversely affect sales of the Companyapstas products |
| Many of the Companyapstas products are delivered to customers either directly from the manufacturer or from the Companyapstas fulfillment centers located in California, Illinois, New York, Ohio and Virginia |
| The Company has established relationships with Federal Express, United Parcel Service and other common carriers for the delivery of these products |
| If these carriers were to increase the prices they charge to ship the Companyapstas goods, and the Company passes these increases on to its customers, its customers might choose to buy comparable products locally to avoid shipping charges |
| In addition, these carriers may experience labor stoppages, which could impact the Companyapstas ability to deliver products on a timely basis to our customers and adversely affect its customer relationships |
| If the Company fails to continuously improve its web site, it may not attract or retain customers |
| If potential or existing customers do not find the Companyapstas Web site a convenient place to shop, the Company may not attract or retain customers and its sales may suffer |
| To encourage the use of the Companyapstas web site, it must continuously improve its accessibility, content and ease of use |
| Customer traffic and the Companyapstas business would be adversely affected if competitors &apos web sites are perceived as easier to use or better able to satisfy customer needs |
| Competition in the floral, plant, gift basket, gourmet food and wine, specialty gift, childrenapstas toys and games and home and garden industries is intense and a failure to respond to competitive pressure could result in lost revenues |
| There are many companies that offer products in these categories |
| In the floral category, the Companyapstas competitors include: o retail floral shops, some of which maintain toll-free telephone numbers and web sites; o online floral retailers; o catalog companies that offer floral products; o floral telemarketers and wire services; and o supermarkets, mass merchants and specialty gift retailers with floral departments |
| Similarly, the plant, gift basket, gourmet food, cookie, candy, wine, specialty gift, childrenapstas toys and home and garden categories are highly competitive |
| Each of these categories encompasses a wide range of products and 13 is highly fragmented |
| Products in these categories may be purchased from a number of outlets, including mass merchants, retail shops, online retailers and mail-order catalogs |
| Competition is intense and the Company expects it to increase |
| Increased competition could result in: o price reductions, decreased revenue and lower profit margins; o loss of market share; and o increased marketing expenditures |
| These and other competitive factors could materially and adversely affect the Companyapstas results of operations |
| If the Company does not accurately predict customer demand for its products, it may lose customers or experience increased costs |
| In the past, the Company did not need to maintain a significant inventory of products |
| However, as the Company expands the volume of non-floral products offered to its customers, the Company will be required to increase inventory levels and the number of products maintained in its warehouses |
| If the Company overestimates customer demand for its products, excess inventory and outdated merchandise could accumulate, tying up working capital and potentially resulting in reduced warehouse capacity and inventory losses due to damage, theft and obsolescence |
| If the Company underestimates customer demand, it may disappoint customers who may turn to its competitors |
| Moreover, the strength of the 1-800-FLOWERSCOM brands could be diminished due to misjudgments in merchandise selection |
| If the supply of flowers for sale becomes limited, the price of flowers could rise or flowers may be unavailable and the Companyapstas revenues and gross margins could decline |
| A variety of factors affect the supply of flowers in the country-regionplaceUnited States and the price of the Companyapstas floral products |
| If the supply of flowers available for sale is limited due to weather conditions or other factors, prices for flowers could rise and customer demand for the Companyapstas floral products may be reduced, causing revenues and gross margins to decline |
| Alternatively, the Company may not be able to obtain high quality flowers in an amount sufficient to meet customer demand |
| Even if available, flowers from alternative sources may be of lesser quality and/or may be more expensive than those currently offered by the Company |
| Most of the flowers sold in the United States are grown by farmers located abroad, primarily in Colombia, Ecuador and Holland, and the Company expects that this will continue in the future |
| The availability and price of flowers could be affected by a number of factors affecting these regions, including: o import duties and quotas; o agricultural limitations and restrictions to manage pests and disease; o changes in trading status; o economic uncertainties and currency fluctuations; o severe weather; o work stoppages; o foreign government regulations and political unrest; and o trade restrictions, including United States retaliation against foreign trade practices |
| The Companyapstas franchisees may damage its brands or increase its costs by failing to comply with its franchise agreements or its operating standards |
| The Companyapstas franchise business is governed by its Uniform Franchise Offering Circulars, franchise agreements and applicable franchise law |
| If the Companyapstas franchisees do not comply with its established operating standards or the terms of the franchise agreements, the 1-800-FLOWERSCOM brands may be damaged |
| The Company may incur significant additional costs, including time-consuming and expensive litigation, to enforce its rights under the franchise agreements |
| Additionally, the Company is the primary tenant on certain leases, which the franchisees sublease from the Company |
| If a franchisee fails to meet its obligations as subtenant, the Company could incur significant costs to avoid default under the primary lease |
| Furthermore, as a franchiser, the Company has obligations to its franchisees |
| Franchisees may challenge the performance of the Companyapstas obligations under the franchise agreements and subject it to costs in defending these claims and, if the claims are successful, costs in connection with their compliance |
| 14 If third parties acquire rights to use similar domain names or phone numbers or if the Company loses the right to use its phone numbers, its brands may be damaged and it may lose sales |
| The Companyapstas Internet domain names are an important aspect of its brand recognition |
| The Company cannot practically acquire rights to all domain names similar to www |
| com, or its other brands, whether under existing top level domains or those issued in the future |
| If third parties obtain rights to similar domain names, these third parties may confuse the Companyapstas customers and cause its customers to inadvertently place orders with these third parties, which could result in lost sales and could damage its brands |
| Likewise, the phone number that spells 1-800-FLOWERS is important to the Companyapstas brand and its business |
| While the Company has obtained the right to use the phone numbers 1-800-FLOWERS, 1-888-FLOWERS and 1-877-FLOWERS, as well as common toll-free "e FLOWERS "e misdials, it may not be able to obtain rights to use the FLOWERS phone number as new toll-free prefixes are issued, or the rights to all similar and potentially confusing numbers |
| If third parties obtain the phone number which spells "e FLOWERS "e with a different prefix or a toll-free number similar to FLOWERS, these parties may also confuse the Companyapstas customers and cause lost sales and potential damage to its brands |
| A lack of security over the Internet may cause Internet usage to decline and cause the Company to expend capital and resources to protect against security breaches |
| A significant barrier to electronic commerce over the Internet has been the need for secure transmission of confidential information and transaction information |
| Internet usage could decline if any well-publicized compromise of security occurred |
| Additionally, computer "e viruses "e may cause the Companyapstas systems to incur delays or experience other service interruptions |
| Such interruptions may materially impact the Companyapstas ability to operate its business |
| If a computer virus affecting the Internet in general is highly publicized or particularly damaging, the Companyapstas customers may not use the Internet or may be prevented from using the Internet, which would have an adverse effect on its revenues |
| As a result, the Company may be required to expend capital and resources to protect against or to alleviate these problems |
| Unexpected system interruptions caused by system failures may result in reduced revenues and harm to the Companyapstas brand |
| In the past, particularly during peak holiday periods, the Company has experienced significant increases in traffic on its Web site and in its toll-free customer service centers |
| The Companyapstas operations are dependent on its ability to maintain its computer and telecommunications systems in effective working order and to protect its systems against damage from fire, natural disaster, power loss, telecommunications failure or similar events |
| The Companyapstas systems have in the past, and may in the future, experience: o system interruptions; o long response times; and o degradation in service |
| The Companyapstas business depends on customers making purchases on its systems, its revenues may decrease and its reputation could be harmed if it experiences frequent or long system delays or interruptions or if a disruption occurs during a peak holiday season |
| If AT&T and Verizon do not adequately maintain the Companyapstas telephone service, the Company may experience system failures and its revenues may decrease |
| The Company is dependent on AT&T and Verizon to provide telephone services to its customer service centers |
| Although the Company maintains redundant telecommunications systems, if AT&T and Verizon experience system failures or fail to adequately maintain the Companyapstas systems, the Company may experience interruptions and its customers might not continue to utilize its services |
| If the Company loses its telephone service, it will be unable to generate revenue |
| The Companyapstas future success depends upon these third-party relationships because it does not have the resources to maintain its telephone service without these or other third parties |
| Failure to maintain these relationships or replace them on financially attractive terms may disrupt the Companyapstas operations or require it to incur significant unanticipated costs |
| Interruptions in Telefloraapstas Dove System or a reduction in the Companyapstas access to this system may disrupt order fulfillment and create customer dissatisfaction |
| A minimal portion of the Companyapstas customers &apos orders are 15 communicated to the fulfilling florist through a third party system |
| This system is an order processing and messaging network used to facilitate the transmission of floral orders between florists |
| If this system experiences interruptions in the future, the Company could experience difficulties in fulfilling some of its customers &apos orders and those customers might not continue to shop with the Company |
| The Companyapstas operating results may suffer due to economic, political and social unrest or disturbances |
| Like other American businesses, the Company is unable to predict what long-term effect acts of terrorism, war, or similar unforeseen events, may have on its business |
| The Companyapstas results of operations and financial condition could be adversely impacted if such events cause an economic slowdown in the United States, or other negative effects that cannot now be anticipated |
| The Companyapstas success is dependent on its ability to hire, retain and motivate highly qualified personnel |
| In particular, the Companyapstas success depends on the continued efforts of its Chairman and Chief Executive Officer, James F McCann, and its President, Christopher G McCann, as well as its senior management team which help manage its business |
| The loss of the services of any of the Companyapstas executive management or key personnel or its inability to attract qualified additional personnel could cause its business to suffer and force it to expend time and resources in locating and training additional personnel |
| Many governmental regulations may impact the Internet, which could affect the Companyapstas ability to conduct business |
| Any new law or regulation, or the application or interpretation of existing laws, may decrease the growth in the use of the Internet or the Companyapstas Web site |
| The Company expects there will be an increasing number of laws and regulations pertaining to the Internet in the United States and throughout the world |
| These laws or regulations may relate to liability for information received from or transmitted over the Internet, online content regulation, user privacy, taxation and quality of products and services sold over the Internet |
| Moreover, the applicability to the Internet of existing laws governing intellectual property ownership and infringement, copyright, trademark, trade secret, obscenity, libel, employment, personal privacy and other issues is uncertain and developing |
| This could decrease the demand for the Companyapstas products, increase its costs or otherwise adversely affect its business |
| Regulations imposed by the Federal Trade Commission may adversely affect the growth of the Companyapstas Internet business or its marketing efforts |
| The Federal Trade Commission has proposed regulations regarding the collection and use of personal identifying information obtained from individuals when accessing Web sites, with particular emphasis on access by minors |
| These regulations may include requirements that the Company establish procedures to disclose and notify users of privacy and security policies, obtain consent from users for collection and use of information and provide users with the ability to access, correct and delete personal information stored by the Company |
| These regulations may also include enforcement and redress provisions |
| Moreover, even in the absence of those regulations, the Federal Trade Commission has begun investigations into the privacy practices of other companies that collect information on the Internet |
| One investigation resulted in a consent decree under which an Internet company agreed to establish programs to implement the principles noted above |
| The Company may become a party to a similar investigation, or the Federal Trade Commissionapstas regulatory and enforcement efforts, or those of other governmental bodies, may adversely affect its ability to collect demographic and personal information from users, which could adversely affect its marketing efforts |
| Unauthorized use of the Companyapstas intellectual property by third parties may damage its brands |
| Unauthorized use of the Companyapstas intellectual property by third parties may damage its brands and its reputation and may likely result in a loss of customers |
| It may be possible for third parties to obtain and use the Companyapstas intellectual property without authorization |
| Third parties have in the past infringed or misappropriated the Companyapstas intellectual property or similar proprietary rights |
| The Company believes infringements and misappropriations will continue to occur in the future |
| Furthermore, the validity, enforceability and scope of protection of intellectual property in Internet-related industries is uncertain and still evolving |
| The Company has been unable to register certain of its intellectual property in some foreign countries and, furthermore, the laws of some foreign countries are uncertain or do not protect intellectual property rights to the same extent as do the laws of the United States |
| Defending against intellectual property infringement claims could be expensive and, if the Company is not successful, could disrupt its ability to conduct business |
| The Company cannot be certain that the products it sells, or services it offers, do not or will not infringe valid patents, trademarks, copyrights or other intellectual property rights held by third parties |
| The Company may be a 16 party to legal proceedings and claims relating to the intellectual property of others from time to time in the ordinary course of its business |
| The Company may incur substantial expense in defending against these third-party infringement claims, regardless of their merit |
| Successful infringement claims against the Company may result in substantial monetary liability or may materially disrupt its ability to conduct business |
| The Company may lose sales or incur significant expenses should states be successful in imposing broader guidelines to state sales and use taxes |
| In addition to the Companyapstas retail store operations, the Company collects sales or other similar taxes in states where the Companyapstas online and telephonic sales channels have applicable nexus |
| Our customer service and fulfillment networks, and any further expansion of those networks, along with other aspects of our evolving business, may result in additional sales and use tax obligations |
| A successful assertion by one or more states that we should collect sales or other taxes on the sale of merchandise could result in substantial tax liabilities for past sales, decrease our ability to compete with traditional retailers, and otherwise harm our business |
| Currently, decisions of the US Supreme Court restrict the imposition of obligations to collect state and local sales and use taxes with respect to sales made over the Internet |
| However, a number of states, as well as the US Congress, have been considering various initiatives that could limit or supersede the Supreme Courtapstas position regarding sales and use taxes on Internet sales |
| If any of these initiatives addressed the Supreme Courtapstas constitutional concerns and resulted in a reversal of its current position, we could be required to collect additional sales and use taxes |
| The imposition by state and local governments of various taxes upon Internet commerce could create administrative burdens for us and could decrease our future sales |
| A failure to integrate our acquisitions may cause the results of the acquired company to suffer as well as the results of the Company |
| The Company has opportunistically acquired a number of companies over the past several years |
| As part of the acquisition process, the Company embarks upon a project management effort to integrate the acquisition onto our information technology systems and management processes |
| If we are unsuccessful in integrating our acquisitions, the results of our acquisitions may suffer, management may have to divert valuable resources to oversee and manage the acquisitions, the Company may have to expend additional investments in the acquired company to upgrade personnel and/or information technology systems and the results of the Company may suffer |
| Product liability claims may subject the Company to increased costs |
| Several of the products the Company sells, including perishable food and alcoholic beverage products, home and garden products, or childrenapstas toys may expose it to product liability claims in the event that the use or consumption of these products results in personal injury |
| Although the Company has not experienced any material losses due to product liability claims to date, it may be a party to product liability claims in the future and incur significant costs in their defense |
| Product liability claims often create negative publicity, which could materially damage the Companyapstas reputation and its brands |
| Although the Company maintains insurance against product liability claims, its coverage may be inadequate to cover any liabilities it may incur |
| The wine industry is subject to governmental regulation |
| The alcoholic beverage industry is subject to extensive specialized regulation under state and federal laws and regulations, including the following matters: licensing; the payment of excise taxes; advertising, trade and pricing practices; product labeling; sales to minors and intoxicated persons; changes in officers, directors, ownership or control; and, relationships among product producers, importers, wholesalers and retailers |
| While the Company believes that it is in material compliance with all applicable laws and regulations, in the event that it should be determined that the Company is not in compliance with any applicable laws or regulations, the Company could become subject to cease and desist orders, injunctive proceedings, civil fines, license revocations and other penalties which could have a material adverse effect on the Companyapstas business and its results of operations |
| In addition, the alcoholic beverage industry is subject to potential legislation and regulation on a continuous basis including in such areas as direct and Internet sales of alcohol |
| Certain states still prohibit the sale of alcohol into their jurisdictions from out of state wineries and/or retailers |
| There can be no assurance that new or revised laws or regulations, increased licensing fees, specialized taxes or other regulatory requirements will not have a material adverse effect on the Companyapstas business and its results of operations |
| 17 While, to date, the Company has been able to obtain and retain licenses necessary to sell wine at retail, the failure to obtain renewals or otherwise retain such licenses in one or more of the states in which the Company operates would have a material adverse effect on the Companyapstas business and its results of operations |
| The Companyapstas growth strategy for its wine business includes expansion into additional states; however, there can be no assurance that the Company will be successful in obtaining the required permits or licenses in any additional states |
| From time to time, the Company may introduce new marketing initiatives, which may be expected to undergo regulatory scrutiny |
| There can be no assurance that such initiatives will not be stymied by regulatory criticism |
| The Company is dependent on common carriers to deliver its wine shipments |
| The Company primarily uses FedEx and UPS to deliver its wine shipments |
| If FedEx or UPS were to terminate delivery services for alcoholic beverages in certain states, as it did in 1999 in Florida, Nevada and Connecticut, the Company would likely incur significantly higher shipping rates that would have a material adverse effect on the Companyapstas business and its results of operations |
| If any state prohibits or limits intrastate shipping of alcoholic beverages by third party couriers, the Company would likely incur significantly higher shipping rates that would have a material adverse effect on the Companyapstas business and its results of operations |
| There are various health issues regarding wine consumption |
| Since 1989, federal law has required health-warning labels on all alcoholic beverages |
| Although an increasing number of research studies suggest that health benefits may result from the moderate consumption of wine, these suggestions have been widely challenged and a number of groups advocate increased governmental action to restrict consumption of alcoholic beverages |
| Restrictions on the sale and consumption of wine or increases in the taxes imposed on wine in response to concerns regarding health issues may have a material adverse effect on the Companyapstas business and operating results |
| There can be no assurance that there will not be legal or regulatory challenges to the industry as a whole, and any such legal or regulatory challenge may have a material adverse effect on the Companyapstas business and results of operations |
| The price at which the Companyapstas Class A common stock will trade may be highly volatile and may fluctuate substantially |
| The stock market has from time to time experienced price and volume fluctuations that have affected the market prices of securities, particularly securities of companies with Internet operations |
| As a result, investors may experience a material decline in the market price of the Companyapstas Class A common stock, regardless of the Companyapstas operating performance |
| In the past, following periods of volatility in the market price of a particular companyapstas securities, securities class action litigation has often been brought against that company |
| The Company may become involved in this type of litigation in the future |
| Litigation of this type is often expensive and diverts managementapstas attention and resources, and as such, could have a material adverse effect on the Companyapstas business and its results of operations |
| com, access to our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission |
| All such filings on our investor relations website are available free of charge |
| (The information posted on the Companyapstas website is not incorporated into this Annual Report of Form 10-K) A copy of this annual report on Form 10-K is available without charge upon written request to: Investor Relations, 1-800-FLOWERSCOM, Inc, One Old Country Road, Suite 500, Carle Place, NY 11514 |
| In addition, the SEC maintains a website (http://www |
| gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC |