1-800-Flowers.com Inc (FLWS, Financial) released its 8-K filing on January 30, 2025, reporting a revenue of $775.5 million and a net income of $64.3 million for the fiscal second quarter ended December 29, 2024. The company's earnings per share (EPS) stood at $1.00, falling short of the analyst estimate of $1.19. However, the revenue fell short of the estimated $801.64 million.
Company Overview
1-800-Flowers.com Inc is a leading provider of gifts designed to help customers express, connect, and celebrate. The company's e-commerce platform features a wide array of brands, including 1-800-Flowers.com, Cheryl's Cookies, Harry and David, and more. The business is segmented into Consumer Floral and Gifts, BloomNet, and Gourmet Foods & Gift Baskets, with the latter generating the maximum revenue.
Performance and Challenges
The company experienced a 5.7% decline in total consolidated revenues compared to the prior year period. This decline was attributed to a softer than anticipated consumer environment and a reduction in corporate gifting orders, partially offset by improvements in the wholesale business. Additionally, issues with the new Harry & David order management system implementation further impacted performance.
“Our second quarter revenue declined 5.7%, showing year-over-year improvement, but not at the pace that we had been anticipating,” said Jim McCann, Chairman and Chief Executive Officer of 1-800-Flowers.com Inc.
Financial Achievements
Despite the revenue shortfall, the company reported a gross profit margin of 43.3%, consistent with the prior year period. Operating expenses decreased by $19.9 million to $244.5 million. Excluding non-recurring charges, operating expenses declined by $2.9 million to $239.1 million. The adjusted EBITDA was reported at $116.3 million, highlighting the company's efforts in cost management and operational efficiency.
Key Financial Metrics
Net income for the quarter was $64.3 million, or $1.00 per diluted share, compared to $62.9 million, or $0.97 per diluted share, in the prior year period. The company's performance in terms of EPS fell short of the analyst estimate, indicating effective cost control and operational strategies despite revenue challenges.
Analysis and Outlook
The company's updated fiscal year 2025 outlook suggests an expectation of improved revenue trends as the year progresses, driven by its Relationship Innovation initiatives. These initiatives aim to expand offerings, broaden price points, and enhance user experience, which are crucial for maintaining competitiveness in the Retail - Cyclical industry.
1-800-Flowers.com Inc's amendment to its credit agreement provides more clarity and flexibility, which could support future strategic initiatives and financial stability. The company's focus on leveraging technology to enhance customer engagement and build deeper relationships is expected to help navigate current challenges and capitalize on growth opportunities.
Explore the complete 8-K earnings release (here) from 1-800-Flowers.com Inc for further details.
