1-800-FLOWERS.COM(US:FLWS)2025-10-30 20:21Financial Performance - For the three months ended September 28, 2025, the total net revenues decreased by 11.1% to $215.2 million compared to $242.1 million for the same period in 2024[86]. - The net loss for the three months ended September 28, 2025, was $52.96 million, compared to a net loss of $34.19 million for the same period in 2024[82]. - Adjusted EBITDA for the three months ended September 28, 2025, was $(32.95) million, a decrease of 17.9% from $(27.95) million for the same period in 2024[86]. - The gross profit for the total company decreased by 16.9% to $76.76 million, down from $92.32 million in the same quarter of the previous year[86]. - E-commerce revenues fell by 12.5% to $169.0 million, driven by a decline in demand across segments[96]. - Free cash flow was negative at $(145.6) million, compared to $(189.3) million in the prior year[92]. - Gross profit decreased by 16.9% to $76.8 million, with a gross profit margin of 35.7%, down from 38.1%[108]. - Other revenues decreased by 5.6% to $46.2 million, primarily due to lower wholesale volumes in the Gourmet Foods & Gift Baskets segment[99]. - Consumer Floral & Gifts segment revenues decreased by 14.6%, with a 17.1% drop in e-commerce orders[101][102]. - Gross profit in the Consumer Floral & Gifts segment fell by 18.9% due to lower revenues and increased costs[110]. Operational Changes - The company aims to transform into a customer-centric, data-driven organization to fuel future growth in fiscal 2026[72]. - The strategic priorities include driving cost savings, building a customer-centric organization, and broadening reach into new channels[75]. - The company is focusing on marketing effectiveness and profitability over near-term revenue growth, impacting overall revenue performance[94]. Expenses and Costs - Marketing and sales expenses decreased by 15.8% to $69.1 million, representing 32.1% of net revenues[113]. - Technology and development expenses decreased by 9.5% to $14,150,000 for the three months ended September 28, 2025, compared to $15,639,000 in the prior year[115][116]. - General and administrative expenses increased by 9.1% to $31,118,000 for the three months ended September 28, 2025, compared to $28,526,000 in the prior year[117][118]. Financial Position - Working capital decreased to $11.7 million as of September 28, 2025, from $61.3 million at June 29, 2025[125]. - Net cash used in operating activities was $139.0 million for the three months ended September 28, 2025, primarily due to seasonal changes in net working capital[129]. - The company had $110.0 million outstanding under its revolving credit agreement as of September 28, 2025, to fund pre-holiday manufacturing and inventory procurement[127]. Shareholder Information - The weighted average shares used in the calculation of basic and diluted net loss per common share was 63,630 for the three months ended September 28, 2025[82]. Interest and Taxation - Interest income decreased by 52.9% to $(311,000) for the three months ended September 28, 2025, compared to $(660,000) in the prior year[120]. - Interest expense increased by 15.0% to $4,621,000 for the three months ended September 28, 2025, compared to $4,020,000 in the prior year[121][122]. - Other expense (income), net increased by 32.8% to $(2,347,000) for the three months ended September 28, 2025, compared to $(1,767,000) in the prior year[123]. - The company recorded an income tax expense of $0.5 million for the three months ended September 28, 2025, compared to an income tax benefit of $14.4 million in the prior year[124]. Customer Engagement - The company operates a diverse portfolio of brands, including 1-800-Flowers.com and Harry & David, to enhance customer relationships through its Celebrations Passport loyalty program[70]. - The average order value increased by 2.2% to $79.98, despite a 14.4% decrease in the number of orders fulfilled[97]. Segment Performance - The Consumer Floral & Gifts segment reported a 14.6% decline in net revenues, totaling $115.43 million compared to $135.18 million in the prior year[86]. - The segment contribution margin for the Gourmet Foods & Gift Baskets segment was $(13.36) million, reflecting a decrease of 17.8% compared to the prior year[86].