The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Doug Lane - Water Tower Research - Analyst
: Yes, hi, good morning, everybody. I want to talk about tariffs and recently, President Trump threatened Colombia with very stiff tariffs because of
the drug trade. Can you comment on how that would impact your business? And what would be the workaround if you didn't enact those tariffs?
James Langrock - 1-800-Flowers.Com Inc - Chief Financial Officer
So as you know, Colombia represents about 60%, 70% of the fresh flowers coming into the country. So it would clearly have a significant impact
on the US floral industry. So with that, it would have a significant impact in creating higher prices across the ecosystem. So it does happen, hopefully,
it hasn't and he hasn't given a number yet.
So -- but clearly would have an impact and most likely would just be an increase because so many of the flowers do come in from Colombia. We
would try to offset that with other areas, but it would be very difficult to do that. So it would have an impact on the overall industry, not just
Question: Doug Lane - Water Tower Research - Analyst
: No, clearly, on the overall industry, but what is the practicality of moving your sourcing from Colombia to say, Ecuador or somewhere else in the
area?
James Langrock - 1-800-Flowers.Com Inc - Chief Financial Officer
You can -- we would absolutely try, but everyone would be doing the same thing, right? So I mean there's -- we can move some of it. Obviously,
you could try to change arrangements and the flowers that are in it, but -- like I said, it would definitely put price pressure on the overall industry.
Question: Doug Lane - Water Tower Research - Analyst
: No, that makes sense. And you're selling now on amazon.com and walmart.com. And I get what you're doing here, but then the name of the
company is 1-800-FLOWERS.COM. So I wonder if there's a rebranding that needs to happen here so that you can expand so you can really be able
to benefit from this expanded distribution into multiple retail channels or multiple distribution channels.
Adolfo Villagomez - 1-800-Flowers.Com Inc - Chief Executive Officer
I'll say great question. We hire an external marketing and brand consultant to help us answer that question. And as everything you will see us do
going forward. We are customer back. So we are going to do whatever resonates better with the customer.
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