Financial Data and Key Metrics Changes - The company's third quarter revenue declined by 12.6%, with a 11.4% decline in the Consumer Floral and Gifts segment and an 18.2% decline in the Gourmet Foods Baskets segment, while the BloomNet segment saw a 4.5% increase [16][18] - Adjusted gross profit margin decreased by 350 basis points to 33.1%, impacted by a highly promotional sales environment and costs associated with a new system implementation [16][18] - The adjusted EBITDA loss for the third quarter was $34.9 million, compared to a loss of $5.7 million in the prior year [18] Business Line Data and Key Metrics Changes - Consumer Floral and Gifts segment experienced an 11.4% revenue decline, while the Gourmet Foods Baskets segment saw an 18.2% decline [16] - The BloomNet segment reported a 4.5% increase in revenue, indicating some resilience in that area [16] Market Data and Key Metrics Changes - Consumer sentiment and confidence have declined due to macroeconomic pressures, impacting overall sales performance [15][21] - The company noted a shift in consumer behavior, with lower-income consumers facing challenges in discretionary spending, while higher-income customers showed good retention [57] Company Strategy and Development Direction - The company introduced a transformative long-term strategy called "Celebrations Wave," aimed at enhancing customer engagement and building deeper relationships through a comprehensive celebrations ecosystem [5][10] - The strategy includes optimizing operations, reducing costs, and leveraging advanced technologies to improve customer experiences and drive revenue growth [23][25] - The company plans to reduce marketing costs as a percentage of revenue by adopting more efficient customer acquisition methods [15][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by macroeconomic factors, including inflation and tariff impacts, and the need for a tactical approach to navigate these uncertainties [21][22] - The company has withdrawn its guidance due to unpredictable external factors and is focused on executing its transformational strategy for long-term success [21][22] Other Important Information - The company is implementing cost reductions of approximately $40 million on an annualized basis, with $17 million already executed [23] - The leadership team has been strengthened with the addition of new executives, including a Chief AI and Transformation Officer [7][9] Q&A Session Summary Question: Impact of Valentine's Day and Easter on quarterly sales - Management noted that while Valentine's Day was favorable, the softness in January and March affected overall performance, with the Easter shift contributing to revenue adjustments [37][40] Question: System implementation issues and sales loss - Management admitted to significant issues with the order management system, estimating a loss of at least $20 million in top-line revenue due to these challenges [41][45] Question: Timeline and initial achievements of Celebrations Wave - The focus is on improving internal efficiency and enhancing customer engagement through AI and personalized experiences, with initial efforts aimed at leveraging existing inventory and media [48][51] Question: Revenue trajectory in April - Management indicated that April's revenue would be up due to the Easter shift, but everyday business remains soft [65] Question: Retail strategy and expansion plans - Management expressed a commitment to re-entering retail with a multi-channel approach, planning to expand holiday stores and test year-round locations based on learnings from recent openings [70][77]