1-800-FLOWERS.COM, Inc. Shows Resilient Performance in Q2
1-800-FLOWERS.COM, Inc. Reports Fiscal 2025 Second Quarter Results
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to help inspire customers to give more, connect more, and foster enriching relationships, has shared its financial results for its second quarter of Fiscal 2025.
Key Financial Highlights
The company reported consolidated revenues of $775.5 million, reflecting a 5.7% decrease from the prior year. Despite this decline, the gross profit margin remained stable at 43.3%. Operating expenses decreased by $19.9 million to $244.5 million compared to the same period last year.
Net income for the quarter was $64.3 million, translating to $1.00 per diluted share, a slight increase from $62.9 million or $0.97 per diluted share in the previous year. Adjusted net income was reported at $69.2 million or $1.08 per diluted share, sliding from $82.7 million or $1.27 per diluted share in the prior year period.
Quarterly Performance Overview
Jim McCann, the Chairman and CEO of 1-800-FLOWERS.COM, Inc., stated, "Our second quarter revenue declined 5.7%, showing year-over-year improvement, but not at the pace that we had been anticipating. Our business experienced a softer consumer environment this quarter, primarily driven by promotional activities along with a modest pullback in corporate gifting orders. Nevertheless, our wholesale segment saw progress, slightly mitigating these challenges."
Additionally, he noted the ongoing impacts of the implementation issues related to the Harry & David order management system, which resulted in approximately $20 million in lost revenue.
Strategic Initiatives for Growth
As consumer engagement patterns shift, 1-800-FLOWERS.COM is actively pursuing efficiency measures under its 'Work Smarter' initiative. These efforts aim to bolster their growth-oriented Relationship Innovation initiatives and expand the customer base effectively.
The company believes there are significant opportunities to utilize new technology that will enhance customer engagement and strengthen bonds with their clientele. Jim McCann expressed confidence in the team's ability to navigate current challenges and emerge more resilient.
Segment Performance Insights
The company provided insights into its various segments:
- Gourmet Foods and Gift Baskets: Revenue decreased 4% to $518.5 million, impacted significantly by the new order management system issues.
- Consumer Floral and Gifts: Revenue dropped 8% to $234.3 million, affected by market promotions.
- BloomNet: Revenue diminished by 16.2% to $22.8 million, impacted by lowered order volumes.
Looking Forward
Amidst current market uncertainties, 1-800-FLOWERS.COM is adjusting its fiscal guidance. For the remainder of Fiscal 2025, the company anticipates a mid-single-digit revenue decline, alongside an adjusted EBITDA range of $65 million to $75 million, and free cash flow between $25 million to $35 million.
Operational Adjustments and Conference Call Announcement
The Company has amended its credit agreement to enhance clarity and flexibility moving forward, concerning its financial metrics, including Consolidated EBITDA. A conference call to delve into these results will be held, offering insights into the next steps and operational strategies.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. has set a name for itself in the e-commerce space with a diverse portfolio of brands including 1-800-Flowers.com, 1-800-Baskets.com, and PersonalizationMall.com, among others. The company focuses on providing innovative and personalized gifts that help customers connect effectively with their loved ones.
Visit our website for more information.Frequently Asked Questions
What were the key financial results for 1-800-FLOWERS.COM in Q2?
1-800-FLOWERS.COM reported $775.5 million in revenues, a 5.7% decrease compared to the prior year, with net income of $64.3 million.
How has consumer behavior affected 1-800-FLOWERS.COM's performance?
The company has observed a softer consumer environment, affecting its gifting orders, particularly in corporate gifting, while facing increased promotional activities.
What actions is 1-800-FLOWERS.COM taking to navigate challenges?
The company is implementing efficiency initiatives and leveraging technology to enhance customer engagement and drive growth.
What is the outlook for 1-800-FLOWERS.COM for Fiscal 2025?
They expect a mid-single-digit decline in total revenues, with adjusted EBITDA projected between $65 million to $75 million.
Where can I find more information about 1-800-FLOWERS.COM?
Additional details can be found on their official website at 1800flowers.com.
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