1-800-FLOWERS.COM Reports First Quarter Fiscal 2025 Results
1-800-FLOWERS.COM, Inc. Reports Fiscal First Quarter Results
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a top gift supplier aimed at fostering connections and relationships, has announced results for its latest fiscal quarter.
Jim McCann, Chairman and CEO, remarked, "Our performance during the first quarter has aligned with what we anticipated, indicating a gradual improvement in our e-commerce revenue. Our gross profit margins are showing positive growth, and we've successfully reduced our expenses via our Work Smarter initiatives. We expect these trends to enhance as we approach the holiday sales season. Furthermore, our wholesale orders are set to bolster our revenues this year. Our Relationship Innovation initiatives from the past two years have allowed us to diversify our offerings across various price points, providing customers with a wide array of gift selections from budget to premium. We eagerly await supporting our customers in expressing their sentiments towards loved ones."
Fiscal 2025 First Quarter Highlights
The financial review for the first quarter yielded some significant insights:
- Total combined revenues saw a decrease of 10% to $242.1 million compared to the same period last year.
- E-commerce revenues fell by 8%, resulting from a 6.5% drop in orders and a 1.5% dip in Average Order Value (AOV).
- Gross profit margin increased by 20 basis points, reaching 38.1% year-on-year.
- Operating expenses declined by $0.2 million to $139.3 million. When excluding non-recurring charges related to system implementations and compensation plans, the operating expenses were down by $4.2 million to $135.8 million versus the previous year.
- The net loss for the quarter was $34.2 million or ($0.53) per share, compared to a net loss of $31.2 million or ($0.48) per share last fiscal year.
- Adjusted Net Loss was reported at $32.9 million, reflecting ($0.51) per share, compared to an Adjusted Net Loss of $31.2 million or ($0.48) per share from the same period last year.
- Adjusted EBITDA loss for the quarter was $27.9 million versus the $22.5 million loss in the prior year.
- 1-800-FLOWERS.COM was acknowledged as one of Newsweek's Most Admired Workplaces for 2025.
Segment Insights
Examining the segments within the business provides further detail:
- Gourmet Foods and Gift Baskets: Revenues decreased by 14.4% to $84 million, largely attributed to the timing of $3 million in wholesale orders moving into the second quarter. However, gross profit margin improved by 50 basis points to 32%, benefiting from inventory optimization and commodity cost reductions.
- Consumer Floral & Gifts: Revenues fell by 4.9% to $135.2 million, with gross profit margin marginally up by 30 basis points to 39.9%.
- BloomNet: Revenues plummeted 20.1% to $23.1 million, gathering strain from lower margin orders processed. Gross profit margin dropped 20 basis points to 50% due to low sales volume.
Company Outlook
Looking ahead for Fiscal 2025, 1-800-FLOWERS.COM anticipates an improving revenue trend as the year unfolds, driven by their Relationship Innovation initiatives. These initiatives have broadened product offerings and improved the user experience through boosted marketing efforts. The updated Adjusted EBITDA expectation indicates a range of $85 million to $95 million, while total revenue is projected to be flat or decrease slightly compared to last year.
1-800-FLOWERS.COM aims for free cash flow in the interval of $45 million to $55 million. The executive team remains positive amidst ongoing consumer uncertainty in the broader market, affirming confidence in the strategies being implemented for business growth.
Frequently Asked Questions
What were the total revenues reported for 1-800-FLOWERS.COM for the first quarter?
Total consolidated revenues were reported to be $242.1 million, reflecting a decrease of 10% compared to the prior year.
How did e-commerce revenues perform this quarter?
E-commerce revenues dropped by 8% compared to the previous year, with a 6.5% decline in orders.
What was the net loss for the quarter?
The net loss for the quarter amounted to $34.2 million or ($0.53) per share.
What improvements were noted in gross profit margin?
The gross profit margin increased by 20 basis points to 38.1% year-on-year.
What is the forecast for free cash flow for the fiscal year?
Free cash flow is expected to be in a range of $45 million to $55 million for the fiscal year.
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