1-800-FLOWERS.COM(FLWS) - 2026 Q2 - Quarterly Results

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].