Quarter Results 1-800-FLOWERS.COM, Inc. Announces Fiscal 2025 Second Quarter Performance
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a prominent gift provider focused on helping customers build and strengthen relationships, today reported its financial results for the second quarter of Fiscal 2025, ending December 29, 2024.
“Our second quarter saw a 5.7% decline in revenue, showing year-over-year improvement, although not at the rate we had anticipated,” said Jim McCann, Chairman and CEO of 1-800-FLOWERS.COM. “Our business faced a more challenging and promotional consumer environment, coupled with a reduction in corporate gifting orders, slightly mitigated by stronger performance in our wholesale sector. These challenges were further compounded by issues with our new Harry & David order management system.”
He continued, “Changes in consumer engagement patterns have impacted our performance. To address this, we are accelerating our Work Smarter initiatives, which will drive investments into our growth-focused Relationship Innovation™ strategies, marketing, and sales efforts. We see significant opportunities to enhance customer engagement and build deeper relationships through Results the use of new technology. We are confident that our dedicated team and innovative approaches will help us navigate these challenges and emerge even stronger.”
Fiscal 2025 Second Quarter Highlights:
- Total consolidated revenues decreased 5.7% to $775.5 million compared to the same period last year.
- Gross profit margin held steady at 43.3%, flat compared to the previous year.
- Operating expenses dropped by $19.9 million to $244.5 million, excluding non-recurring charges related to new system implementation costs, impairment charges from the prior year, and the company’s non-qualified deferred compensation plan.
- Net income for the quarter was $64.3 million, or $1.00 per diluted share, up from $62.9 million, or $0.97 per diluted share, in the prior year.
- Adjusted net income was $69.2 million, or $1.08 per diluted share, compared to $82.7 million, or $1.27 per diluted share, in the prior year.
- Adjusted EBITDA for the quarter was $116.3 million, down from $130.1 million in the same period last year.
Segment Results:
The company provides Fiscal Results 2025 second-quarter results for its main business segments, including Gourmet Foods and Gift Baskets, Consumer Floral & Gifts, and BloomNet®:
- Gourmet Foods and Gift Baskets: Revenues declined 4.0% to $518.5 million. The issues with the new order management system resulted in an estimated $20 million in lost revenue. Gross profit margin increased by 30 basis points to 43.5%, thanks to inventory and labor optimization efforts that helped offset additional system costs.
- Consumer Floral & Gifts: Revenues dropped 8.0% to $234.3 million. Gross profit margin decreased by 90 basis points to 41.9%, primarily due to a promotional consumer environment. Segment contribution margin fell to $21.6 million from $30.4 million in the prior year.
- BloomNet: Revenues were down 16.2% to $22.8 million, impacted by a decrease in lower-margin orders. However, gross profit margin increased 330 basis points to 50.9% due to reduced florist rebates.
Company Guidance:
In light of its performance during the second quarter, the company has updated its fiscal Results 2025 guidance:
- Total revenue is expected to decline in the mid-single digits compared to the previous year.
- Adjusted EBITDA is projected to range between $65 million and $75 million.
- Free Cash Flow is expected to range between $25 million and $35 million.
Credit Agreement Amendment:
The company has amended its credit agreement to provide additional flexibility and clarity moving forward. The amendment includes changes to the definition of Consolidated EBITDA, the application of optional term loan prepayments, and the definition of Consolidated Fixed Charges. Further details can be found in the company’s Form 8-K filed with the SEC.
Conference Call:
The company will hold a conference call to discuss these results today, January 30, 2025, at 8:00 a.m. ET. The call will be webcast from the investor section of the company’s website atA recording of the call will be available on the website within two hours, and a telephonic replay can be accessed from 2:00 p.m. ET on January 30, 2025, through February 6, 2025, at the following numbers:
- US: 1-877-344-7529
- Canada: 855-669-9658
- International: 1-412-317-0088
Conference ID: 4981439
Non-GAAP Financial Measures:
This press release refers to non-GAAP financial measures. These measures are used to provide a clearer view of the company’s performance, excluding certain non-recurring items. Reconciliations of these non-GAAP measures to the most comparable GAAP financial measures are available below.
