1-800-FLOWERS.COM(FLWS) - 2026 Q1 - Quarterly Results

Financial Performance - Total consolidated revenues decreased by 11.1% to $215.2 million compared to the prior year period, primarily due to a strategic shift focused on marketing effectiveness and profitability [4] - Net loss for the quarter was $53.0 million, or $0.83 per share, compared to a net loss of $34.2 million, or $0.53 per share in the prior year period [6] - Adjusted EBITDA loss for the quarter was $32.9 million, compared to an Adjusted EBITDA loss of $27.9 million in the prior year period [6] - Total net revenues for the three months ended September 28, 2025, were $215,200,000, a decrease of 11.1% compared to $242,090,000 for the same period in 2024 [22] - Gross profit for the same period was $76,762,000, down 16.9% from $92,319,000 year-over-year [22] - The net loss for the three months ended September 28, 2025, was $52,957,000, compared to a net loss of $34,190,000 for the same period in 2024 [22] - Basic and diluted net loss per common share was $0.83 for the three months ended September 28, 2025, compared to $0.53 for the same period in 2024 [28] - Operating loss for the three months ended September 28, 2025, was $50,513,000, compared to an operating loss of $46,981,000 for the same period in 2024 [22] - Adjusted EBITDA for the three months ended September 28, 2025, was $(32,947,000), compared to $(27,946,000) for the same period in 2024 [29] Segment Performance - Gourmet Foods & Gift Baskets segment revenues declined by 8.6% to $76.8 million, with a gross profit margin decrease of 340 basis points to 28.6% [6] - Consumer Floral & Gifts segment revenues declined by 14.6% to $115.4 million, with a gross profit margin decrease of 200 basis points to 37.9% [6] - BloomNet segment revenues were $23.1 million, essentially flat compared to the prior year, with a gross profit margin decrease of 230 basis points to 47.7% [6] Cost Management - Operating expenses decreased by $12.0 million to $127.3 million, primarily due to lower marketing and labor costs [4] - The company anticipates achieving an additional $50 million in gross savings over the next two years, building on $17 million in savings implemented during Fiscal 2025 [3] Cash Flow and Assets - Cash and cash equivalents decreased to $7,747,000 at the end of the period from $46,502,000 at the beginning of the period [24] - Total current liabilities increased to $346,448,000 from $221,386,000 year-over-year [20] - Total assets increased to $840,501,000 from $772,617,000 year-over-year [20] - The company reported a net cash used in operating activities of $138,974,000 for the three months ended September 28, 2025, compared to $177,241,000 for the same period in 2024 [24] - Net cash used in operating activities for the three months ended September 28, 2025, was $138,974 thousand, an improvement from $177,241 thousand for the same period in 2024 [33] - Capital expenditures decreased to $6,652 thousand in the three months ended September 28, 2025, compared to $12,075 thousand in the same period in 2024 [33] - Free cash flow for the three months ended September 28, 2025, was $(145,626) thousand, an improvement from $(189,316) thousand in the same period in 2024 [33] Strategic Initiatives - The company is transforming into a customer-centric, data-driven organization to fuel future growth [5] - The strategic priorities include broadening reach beyond e-commerce sites into new channels and enhancing team accountability [11]