Gross profit margin narrowed to 42.1% from 43.3% a year earlier, largely due to deleveraging from lower sales volume. Operating expenses fell $23.4 million to $221.1 million, reflecting reduced marketing and labor costs.
Segment Performance
• Gourmet Foods & Gift Baskets revenue declined 3.8%, with a margin contraction driven by lower volume and higher input costs.
• Consumer Floral & Gifts revenue fell 22.7%, with a wider margin impact from reduced sales and tariff and commodity cost pressures.
• BloomNet® revenue was down 3.1%, while its gross margin remained broadly consistent with the prior year.
CEO Adolfo Villagomez said the company continued to execute against key strategic priorities through the holiday period, advancing cost optimization and organizational changes. He noted the initiatives are strengthening the operating foundation and positioning the company for long-term performance.
Guidance and Outlook
Management described fiscal 2026 as a foundational year of transformation. For the second half of the fiscal year, the company expects revenue to decline in the low double-digit range, reflecting a continued focus on marketing contribution margin and impacts from changes in search engine results and direct traffic. Adjusted EBITDA for the second half is expected to be slightly lower year-over-year, though on a normalized basis, excluding certain incentive compensation and consulting costs, adjusted EBITDA is expected to improve modestly. Ongoing cost-optimization and organizational streamlining initiatives are anticipated to help offset topline pressure.
Market Context
Shares of FLWS responded positively to the earnings delivery, reflecting investor focus on profitability and cost-control progress despite softer revenue. Broader trends in retail and e-commerce, including changes in consumer search behavior and discretionary spending patterns, continue to influence results for companies in the gifting and specialty retail category. Revenue declines in direct e-commerce and organic traffic headwinds were noted as significant drivers of the top-line performance.
Company Background
1-800-Flowers.com, Inc. is a U.S.-based floral and gift retailer headquartered in Jericho, New York. The company operates a portfolio of consumer brands offering fresh flowers, gourmet foods, gift baskets, personalized keepsakes, and related products through online platforms, call centers, and a network of affiliated florists. Its operations are concentrated in the North American market.