FLWS · 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM reported a challenging fiscal third quarter, with total consolidated revenues declining 11.6% to $293.0 million. The decline was primarily driven by a strategic shift to improve marketing effectiveness and profitability, which had a more pronounced impact on the Consumer Floral & Gifts segment, where revenues fell 18.7%. Gourmet Foods & Gift Baskets revenues were essentially flat, benefiting from the timing of Easter. Gross profit margin improved 150 basis points to 33.2%, reflecting improved pricing discipline, more targeted promotional activity, and cost savings initiatives, partially offset by higher tariffs. Operating expenses decreased significantly year-over-year, but included a $45.2 million non-cash goodwill and intangible impairment charge related to the Consumer Floral & Gifts segment and the Personalization Mall trademark. Excluding non-recurring charges, operating expenses decreased $16.4 million due to lower marketing and labor costs. Net loss improved to $100.1 million from $178.2 million in the prior year period, while Adjusted EBITDA loss narrowed to $31.2 million from $34.9 million. Management highlighted progress on strategic initiatives, including achieving the two-year cost savings target ahead of plan, and noted improved customer experience metrics for Valentine's Day. For fiscal year 2026, the company expects revenue to decline approximately 10% to 12% and Adjusted EBITDA to be approximately breakeven, within a range of plus or minus $2 million, reflecting continued impact from a more disciplined marketing strategy and changes in search engine results pages.