Core Insights - The company is making steady progress in stabilizing its business and supporting future growth through a shift to a function-based operating structure, which aims to improve efficiency and collaboration [1][4][6] Operational Performance - The company reported an operationally strong holiday season, with improved system stability compared to the previous year, although revenue fell slightly below expectations due to a disciplined marketing approach and changes in search engine results [4][3] - Direct traffic declined more than expected during the holiday period, but stronger performance in B2B and wholesale businesses partially offset this impact [2][3] Financial Results - Consolidated revenue decreased by 9.5% year over year, with specific segment declines: Consumer Floral & Gifts down 22.7%, Gourmet Foods & Gift Baskets down 3.8%, and BloomNet down 3.1% [17] - Adjusted EBITDA fell to $98.1 million from $116.3 million in the prior-year period, reflecting the impact of marketing shifts and search-engine changes [17][18] Cost Management and Savings - The company has achieved approximately $15 million in annualized run-rate cost savings for fiscal 2026, with a target of reaching about $50 million across fiscal 2026 and fiscal 2027 [14][6] - Operating expenses declined by $23.4 million to $221.1 million, primarily due to lower marketing and labor costs [17] Strategic Initiatives - Leadership and cost overhaul is underway, including workforce reductions and leadership realignments, with a new Chief Information Officer appointed to lead technology strategy [6][8] - The company is focusing on a more disciplined marketing strategy aimed at profitability and efficiency, reducing marketing spend while improving the ad spend-to-sales ratio [9][10] Market Outlook - Management expects revenue to decline in the low double-digit range for the second half of fiscal 2026, citing search-engine headwinds and the timing of Valentine's Day as challenges [5][16] - The company is redesigning its retail approach and plans to test a full-year store concept, moving away from less profitable pop-up locations [11]