1-800 FLOWERS.COM Stock Earnings Reports

He has been integral to the company's financial operations over 30 years. - James Langrock, the new Chief Administrative Officer, will succeed Shea as CFO.

Financial Performance Highlights:

• Fiscal 2024 Overview:
  • Total revenue declined by 9.2% year-over-year.
  • Revenues for Q4 declined by 9.5%.
  • Adjusted EBITDA improved to $93.1 million, attributed to gross margin recovery and operating expense efficiencies.
  • Gross margin increased by 260 basis points to 40.1% for the year, rebounding due to cost management and lower commodity prices.

Consumer Trends:

• The macroeconomic environment remains challenging, especially for lower-income consumers, who are significantly impacted by inflation and high-interest rates.
• 74% of revenues for fiscal 2024 came from returning customers; there's potential to convert a larger number into multi-brand customers.

Strategic Initiatives Going Forward:

• Investments are focused on "Relationship Innovation," aimed at enhancing customer engagement and broader product offerings, including efforts to address pricing elasticity across different consumer segments.
• New product launches include offerings at various price points, such as the $50 bouquet of flowers, to attract price-sensitive consumers.
• Continued expansion into the corporate gifting sector through initiatives like SmartGift.

Acquisitions and Growth Prospects:

• The recent acquisition of Scharffen Berger aims to integrate high-end chocolates into existing gift assortments.
• Future acquisitions may be pursued as companies seek capital; management indicates a "robust" appetite for potential purchases that align with strategic goals.
• Expectations of wholesale revenues are optimistic, particularly for Q2 of fiscal 2025 due to increased orders.

Guidance for Fiscal 2025:

• Anticipated revenues could be flat to a low single-digit decline compared to fiscal 2024, with expectations for sequential improvement as the year progresses.
• Adjusted EBITDA is projected to be between $85 million and $95 million.
• Continued strong free cash flow is expected in the range of $45 million to $55 million.

Outlook on Marketing and Consumer Acquisition:

• Plans to ramp up marketing efforts to leverage post-election opportunities for customer acquisition, though current acquisition costs remain high.
• The impact of increased marketing spend on sales growth remains fluid; management is optimistic but avoids committing to specific outcomes.

Conclusion:

Investors are encouraged by the focus on gross margin recovery, strategic investments in customer engagement and product offerings, and the capability to adapt to current economic challenges. However, caution is warranted as the company navigates a complex consumer environment and strives to improve its financial performance heading into fiscal 2025.