The earnings call presented a challenging quarter with revenue declines and operational issues, particularly with the new Harry & David order management system. Despite these setbacks, the company showed resilience in maintaining gross margins and reducing operating expenses. However, the decline in corporate gifting and marketing inefficiencies added to the negative sentiment.
Company Guidance
During the 1-800-Flowers.com Fiscal Year 2025 Second Quarter Conference Call, the company provided updated guidance in light of their recent performance. They now anticipate a mid-single-digit decline in full fiscal year revenue. Adjusted EBITDA is expected to range between $65 million and $75 million, while free cash flow is projected to be between $25 million and $35 million. The quarter's performance was affected by several factors, including a 5.7% decline in consolidated revenue, a 1.2% decrease in average order value (AOV), and an 8.3% drop in e-commerce business due to issues with the new Harry & David order management system. These challenges, along with increased marketing expenditures that did not meet expectations, impacted the company's EBITDA by approximately $4.8 million, leading to a quarterly adjusted EBITDA of $116.3 million, down from $130.1 million in the prior year. Despite these setbacks, the company remains optimistic about future performance improvements through strategic initiatives and enhanced customer engagement.
Successful Delivery During Holiday Season
Despite challenges, the company successfully delivered over seven million orders during the holiday season, demonstrating operational strength under pressure.
Gross Margin Stability
Gross margin remained flat at 43.3%, showing resilience despite a highly promotional environment and OMS-related costs impacting gross profit by approximately 20 basis points.
Reduction in Adjusted Operating Expenses
Adjusted operating expenses declined by $2.9 million to $239 million, attributed to the company's Work Smarter initiatives.
Debt Reduction
The company reduced term debt to $160 million, compared to $195 million a year ago, and made a $25 million prepayment to the term loan.
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1-800 Flowers (FLWS) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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FLWS Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Jan 30, 2025
$8.83
$8.09
-8.38%
Oct 31, 2024
$8.01
$8.32
+3.87%
Aug 29, 2024
$9.00
$7.91
-12.11%
May 02, 2024
$9.06
$9.12
+0.66%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does 1-800 Flowers (FLWS) report earnings?
1-800 Flowers (FLWS) is schdueled to report earning on May 01, 2025, TBA Not Confirmed.
What is 1-800 Flowers (FLWS) earnings time?
1-800 Flowers (FLWS) earnings time is at May 01, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.