1-800-Flowers.Com Inc
NASDAQ:FLWS
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1-800-Flowers.Com Inc
1-800-FLOWERS.COM, Inc. retails floral products and gifts on-line. The company is headquartered in Jericho, New York and currently employs 4,800 full-time employees. The Company’s e-commerce business platform features a range of brands, including: 1-800-Flowers.com, 1-800-Baskets.com, Cheryl’s Cookies, Harry & David, PersonalizationMall.com, Shari’s Berries, FruitBouquets.com, Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Stock Yards and Simply Chocolate. The firm operates in three business segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. Its Celebrations Passport loyalty program provides members with free standard shipping and no service charge across its portfolio of brands. The firm also operates BloomNet, an international floral and gift industry service provider offering a range of products and services to the professional florist; Napco, a resource for floral gifts and seasonal decor, and DesignPac Gifts, LLC, a manufacturer of gift baskets and towers.
1-800-FLOWERS.COM, Inc. retails floral products and gifts on-line. The company is headquartered in Jericho, New York and currently employs 4,800 full-time employees. The Company’s e-commerce business platform features a range of brands, including: 1-800-Flowers.com, 1-800-Baskets.com, Cheryl’s Cookies, Harry & David, PersonalizationMall.com, Shari’s Berries, FruitBouquets.com, Moose Munch, The Popcorn Factory, Wolferman’s Bakery, Stock Yards and Simply Chocolate. The firm operates in three business segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. Its Celebrations Passport loyalty program provides members with free standard shipping and no service charge across its portfolio of brands. The firm also operates BloomNet, an international floral and gift industry service provider offering a range of products and services to the professional florist; Napco, a resource for floral gifts and seasonal decor, and DesignPac Gifts, LLC, a manufacturer of gift baskets and towers.
Revenue Miss: Q2 revenue fell 9.5%, coming in slightly below company expectations due to changes in marketing strategy and search engine visibility.
Gross Margin Pressure: Gross margin declined 120 basis points to 42.1% due to lower sales, higher commodity and tariff costs, and shipping expenses.
Cost Savings Progress: Achieved $15 million in annualized cost savings so far, with a target of $50 million by end of fiscal 2027.
Segment Divergence: Large revenue decline in Consumer Floral & Gifts (down 22.7%), while Gourmet Foods & Gift Baskets and BloomNet saw smaller declines.
Marketing Strategy Shift: Reduced inefficient marketing spend, impacting top line but improving ad spend efficiency and contribution margin.
Pop-Up Stores Abandoned: Company will not pursue additional pop-up stores after ROI fell short; focus shifts to permanent retail concepts.
2H Outlook: Expects low double-digit revenue decline and slightly lower adjusted EBITDA, with improvement excluding incentive and consultant costs.
