Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File No. 0-26841 1-800-FLOWERS.COM, Inc. (Exact name of registrant as specified in its charter) Delaware 11-3117311 Two Jerich ...

Core Insights - 1-800-Flowers.com is experiencing a turnaround, with shares rising significantly after reporting higher-than-expected profits [1] - The company is focusing on efficiency and profitability by reducing marketing spend and restructuring its operations [2][5] Financial Performance - Revenue for the second quarter of fiscal 2026 decreased by 9.5% year over year to $702.2 million [2] - Adjusted net income increased by 11% to $76.7 million, or $1.20 per share, surpassing Wall Street estimates of $0.86 per share [7] Operational Changes - The company has shifted from an individual brand-based structure to a function-based operating model, leading to a reduction in workforce and operating expenses, which fell by $23.4 million to $221.1 million [5][6] - Management emphasizes that while top-line growth may take time, significant progress has been made in cost optimization and organizational streamlining [6]

Villagomez said the company made “steady progress” on initiatives aimed at stabilizing the business and supporting future growth, with a key move being a shift to a function-based operating structure from a brand-based structure. He said the prior approach created duplication, limited collaboration, and slowed decision-making, while the new structure is intended to improve efficiency, clarify ownership, and increase cross-business collaboration.While direct traffic declined more than expected during the hol ...

Core Insights - The company is undergoing a transformation aimed at improving efficiency, accountability, and collaboration through organizational restructuring, including workforce reductions and leadership realignments [1][2][10] - The marketing strategy focuses on enhancing profitability and efficiency while stabilizing the business for future growth, moving from a brand-based to a function-based operating structure [2][5][7] Financial Performance - In the second quarter, consolidated revenue decreased by 9.5%, with a 22.7% decline in the Consumer Floral and Gift segment and a 3.8% decline in the BloomNet segment, primarily due to a strategic shift towards more efficient marketing spending [11][12] - Adjusted EBITDA for the second quarter was $98.1 million, down from $116.3 million in the prior year, reflecting the impact of lower revenue and increased costs [13] Cost Management - The company has achieved approximately $15 million in annualized run rate cost savings for fiscal 2026, with expectations to reach around $50 million in total cost savings across fiscal 2026 and 2027 [11][10] - Ongoing cost reduction initiatives, including organizational simplification and tighter expense management, are beginning to benefit the business, although full benefits are not yet reflected in the P&L [10][12] Marketing and Sales Strategy - The updated marketing approach is improving the ad-to-sales ratio and enhancing product discoverability, which is expected to drive better conversion rates across online experiences [7][30] - The company is discontinuing unprofitable initiatives, such as temporary pop-up stores, and is focusing on a more disciplined retail approach to optimize capital deployment [5][41] Future Outlook - For fiscal 2026, the company expects revenue to decline in the low double-digit range, influenced by ongoing marketing adjustments and changes in search engine result pages [14][15] - The company anticipates that adjusted EBITDA will decline slightly compared to the prior year, but on a normalized basis, it is expected to increase slightly year over year, excluding certain anticipated costs [15]

1-800-FLOWERS.COM (NasdaqGS:FLWS) Q2 2026 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsAdolfo Villagomez - CEOAndy Milevoj - SVP of Investor RelationsDouglas Lane - Managing DirectorJames Langrock - CFOMichael Kupinski - Director of Research and Managing Director of Media and EntertainmentConference Call ParticipantsAnthony Lebiedzinski - Senior Equity AnalystOperatorGood day, and welcome to the 1-800-FLOWERS.COM Fiscal 2026 Second Quarter Earnings Conference Call. All participants will be ...

Financial Data and Key Metrics Changes - Revenue for the second quarter decreased by 9.5%, with e-commerce revenue declining due to a focus on improving marketing contribution margin and changes in search engine results pages negatively impacting direct traffic [13][11] - Gross margin decreased by 120 basis points to 42.1% compared to 43.3% in the prior year, primarily due to lower fixed cost absorption, higher commodity costs, and tariffs [14] - Adjusted EBITDA for the second quarter was $98.1 million, down from $116.3 million in the prior year [15] Business Line Data and Key Metrics Changes - Consumer Floral and Gifts segment revenue declined by 22.7%, Gourmet Foods and Gift Baskets segment by 3.8%, and BloomNet segment by 3.1% [14] - Marketing contribution margin was impacted by the scale of the holiday quarter and a decline in direct traffic, although improvements in ad spend-to-sales ratio were noted [7][11] Market Data and Key Metrics Changes - The company observed a mixed performance across different market segments, with the food business performing better due to its exposure to B2B, while the floral segment faced challenges from inefficient marketing spend [56][14] - The company noted that higher-end household income segments are holding up better, while lower-end segments are experiencing softness [44] Company Strategy and Development Direction - The company is transitioning to a function-based operating structure to improve efficiency, accountability, and collaboration, which includes workforce reductions and leadership realignments [5][6] - A focus on a disciplined marketing approach and the elimination of unprofitable initiatives is intended to sharpen focus on core businesses and improve profitability [9][10] - The company is not pursuing additional pop-up retail locations due to unattractive returns on invested capital, instead opting for a full-year store concept [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while progress is being made, it will not be linear, and they remain focused on executing strategic initiatives and cost reduction efforts [16][10] - The company expects revenue to decline in the low double-digit range for the second half of fiscal 2026, reflecting ongoing challenges in direct traffic and marketing efficiency [16] Other Important Information - The company achieved approximately $15 million in annualized run-rate cost savings for fiscal 2026, with expectations to reach $50 million in total cost savings across fiscal 2026 and 2027 [12] - Valentine's Day is anticipated to be challenging due to its placement on a Saturday, prompting adjustments in marketing strategies [28][31] Q&A Session Summary Question: What drove the decline in the consumer floral and gift segment? - Management indicated that the decline was primarily driven by inefficient marketing spend, particularly in the PMOL segment, which was impacted more than the flowers business [19] Question: Are there any changes in behavior from Passport members? - Management noted that Passport members perform better than non-members, but there is a need to improve the loyalty program's value proposition [20][24] Question: Which segments are expected to perform better in the second half of the year? - Management indicated that the food business is expected to perform better, while the flowers business will be more significant in the second half, with a mixed shift in performance [25][26] Question: What are the trends in commodity prices? - Management reported that while cocoa prices remain high, other commodities like eggs, butter, and sugar are stabilizing and should not be a headwind in the second half of the year [39] Question: What are the capital allocation priorities? - The focus is on stabilizing performance and building capabilities for sustainable growth, with a disciplined approach to capital allocation [46]

Financial Data and Key Metrics Changes - Revenue for the second quarter decreased by 9.5% compared to the prior year, driven by a decline in e-commerce revenue and a strategic shift towards more efficient marketing spending [10][12] - Gross margin decreased by 120 basis points to 42.1%, primarily due to lower fixed cost absorption, higher commodity costs, and tariffs [12] - Adjusted EBITDA for the second quarter was $98.1 million, down from $116.3 million in the prior year [14] Business Line Data and Key Metrics Changes - Consumer Floral and Gifts segment saw a decline of 22.7%, Gourmet Foods and Gift Baskets segment declined by 3.8%, and BloomNet segment declined by 3.1% [12] - The decline in the Consumer Floral segment was attributed to inefficient marketing spend and a strategic focus on improving marketing contribution margin [18][36] Market Data and Key Metrics Changes - The company noted a decline in direct traffic during the holiday period, which was partially offset by stronger performance in B2B and wholesale businesses [4] - The food business, particularly Harry & David, performed better than the floral segment, benefiting from a more disciplined marketing approach and exposure to B2B [36][52] Company Strategy and Development Direction - The company is transitioning to a function-based operating structure to improve efficiency, accountability, and collaboration [5] - A focus on improving marketing contribution margin and reducing unprofitable initiatives is expected to build a more sustainable demand generation model [7][8] - The company plans to redesign its retail approach based on insights gained from pop-up store tests, moving towards a full-year store concept [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the holiday season operations were strong, but revenue came in below expectations due to changes in search engine results and a decline in direct traffic [4] - The company expects revenue to decline in the low double-digit range for the second half of fiscal 2026, reflecting ongoing marketing strategy adjustments and tougher comparisons [15] - Management remains optimistic about future growth, citing improvements in marketing efficiency and product discoverability [9][41] Other Important Information - The company achieved approximately $15 million in annualized run-rate cost savings for fiscal 2026, with a target of $50 million in total cost savings across fiscal 2026 and 2027 [11] - The company is focused on stabilizing performance and building capabilities for sustainable growth, with capital allocation prioritized towards operational efficiencies and customer experience improvements [44] Q&A Session Summary Question: What drove the decline in the consumer floral and gift segment? - The decline was primarily driven by inefficient marketing spend, particularly in PMOL, which was impacted more than the flowers business [18] Question: How are Passport members performing compared to non-members? - Passport members continue to perform better than non-members, but feedback indicates the loyalty program's value proposition needs improvement [23] Question: Which segments are expected to perform better in the second half of the year? - The performance is expected to be consistent across segments, with a mixed shift towards the flowers business being more significant in the second half [25] Question: What are the trends in commodity prices? - Cocoa prices remain elevated, while other commodities like eggs, butter, and sugar are stabilizing and should not be a headwind in the back half of the year [37] Question: What are the biggest factors impacting full-year performance? - The focus is on cost savings initiatives and potential upside on the top line, with cost savings being a controllable factor [39] Question: How is the company approaching capital allocation? - The current priority is on stabilizing performance and building capabilities for sustainable growth, with a disciplined approach to capital allocation [44]

分组1 - 1-800-Flowers.com reported quarterly earnings of $1.2 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing an increase from $1.08 per share a year ago, resulting in an earnings surprise of +39.54% [1] - The company posted revenues of $702.18 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.23%, but down from $775.49 million year-over-year [2] - The stock has gained approximately 2.8% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The earnings outlook for 1-800-Flowers.com is mixed, with the current consensus EPS estimate for the coming quarter at -$0.54 on revenues of $315.31 million, and -$0.91 on revenues of $1.55 billion for the current fiscal year [7] - The Zacks Industry Rank for Retail - Mail Order is currently in the top 40% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Revenue Performance - Total consolidated revenues for Q2 Fiscal 2026 decreased by 9.5% to $702.2 million compared to the prior year period[3]. - Total net revenues for the three months ended December 28, 2025, were $702,179,000, a decrease of 9.4% compared to $775,492,000 for the same period in 2024[23]. - E-Commerce revenues were $595,666,000 for the three months ended December 28, 2025, down 12.1% from $677,326,000 in the prior year[23]. - For the six months ended December 28, 2025, total net revenues were $917,379, a decrease of 9.8% from $1,017,582 in the same period of 2024[29]. - Gourmet Foods & Gift Baskets segment revenues declined by 3.8% to $499.0 million, with a gross profit margin of 42.3%[7]. - Consumer Floral & Gifts segment revenues decreased by 22.7% to $181.2 million, with a gross profit margin of 40.1%[7]. - BloomNet segment revenues decreased by 3.1% to $22.1 million, maintaining a gross profit margin of 50.9%[7]. Profitability Metrics - Net income for the quarter was $70.6 million, or $1.10 per diluted share, up from $64.3 million, or $1.00 per share, in the prior year[3]. - Adjusted net income was $76.7 million, or $1.20 per diluted share, compared to $69.2 million, or $1.08 per share, in the prior year[7]. - Net income for the three months ended December 28, 2025, was $70,553,000, an increase of 9.3% compared to $64,348,000 for the same period in 2024[30]. - Adjusted net income (non-GAAP) for the three months ended December 28, 2025, was $76,661,000, up from $69,180,000 in the prior year, reflecting a growth of 10.5%[30]. - Basic net income per share for the three months ended December 28, 2025, was $1.11, compared to $1.01 for the same period in 2024, marking a 9.9% increase[30]. - Diluted adjusted net income per share (non-GAAP) for the three months ended December 28, 2025, was $1.20, up from $1.08 in the prior year, reflecting an increase of 11.1%[30]. Operating Expenses and EBITDA - Adjusted EBITDA for the quarter was $98.1 million, down from $116.3 million in the prior year period[7]. - Adjusted EBITDA (non-GAAP) for the three months was $98,118, down 15.6% from $116,278 in the previous year[27]. - Adjusted EBITDA (non-GAAP) for the six months was $65,171, down 26.2% from $88,332 in the prior year[29]. - Operating expenses decreased by $23.4 million to $221.1 million, primarily due to lower marketing and labor costs[3]. - The Corporate segment reported a significant EBITDA loss of $(34,363) for the three months, compared to a loss of $(28,976) in the previous year, reflecting an 18.6% increase in losses[27]. Cash Flow and Capital Structure - Cash and cash equivalents increased to $193,337,000 as of December 28, 2025, from $46,502,000 at the beginning of the period[25]. - Net cash provided by operating activities for the six months ended December 28, 2025, was $170,909,000, an increase from $151,307,000 in the same period of 2024[25]. - Total assets rose to $893,060,000 as of December 28, 2025, compared to $772,617,000 as of June 29, 2025[21]. - Total liabilities increased to $603,359,000 as of December 28, 2025, from $504,335,000 as of June 29, 2025[21]. - Free cash flow for the six months ended December 28, 2025, was $156,619,000, an increase from $128,284,000 in the same period of 2024, representing a growth of 22.1%[34]. Future Outlook - For the second half of Fiscal Year 2026, the company expects revenue to decline in the low double-digit range[5]. - The company aims to transform into a customer-centric, data-driven organization to fuel future growth[4]. Other Financial Metrics - Gross profit for the six months ended December 28, 2025, was $372,228,000, representing a decline of 12.9% from $427,912,000 in the same period of 2024[23]. - Operating income for the three months ended December 28, 2025, was $74,325,000, a decrease of 18.4% compared to $91,077,000 in the prior year[23]. - Gross profit for the same period was $295,466, representing a 12.5% decline from $335,593 in the prior year[27]. - Total gross profit margin for the three months was 42.1%, down from 43.3% in the previous year[27]. - Capital expenditures for the six months ended December 28, 2025, were $14,290,000, down from $23,023,000 in the same period of 2024[34]. - The company incurred restructuring costs/severance of $6,079,000 for the three months ended December 28, 2025[31]. - System implementation costs added $6,307,000 to the adjusted EBITDA for the three months ended December 28, 2024[31]. - Weighted average diluted shares for the three months ended December 28, 2025, were 63,965,000, compared to 64,306,000 for the same period in 2024[30].

Core Viewpoint - 1-800-FLOWERS.COM, Inc. reported its Fiscal 2026 second quarter results, emphasizing the execution of key strategic priorities during the holiday period, which reflects the early stages of a broader transformation [1] Financial Performance - The company provided results for the second quarter ended December 28, 2025, indicating ongoing efforts to enhance customer engagement and relationship building [1]