1-800 Flowers.com Stock Earnings Reports

1-800-FLOWERS reported a challenging fiscal Q3: revenue declined 12.6% (Consumer Floral & Gift -11.4%, Gourmet Foods & Gift Baskets -18.2%, BloomNet +4.5%). Adjusted gross margin fell 350 bps to 33.1%, and adjusted EBITDA loss was $34.9M (vs. $5.7M loss prior year). The company recorded a non-cash goodwill and trade name impairment in the Consumer Floral & Gift segment. Net debt rose to $75M (cash $85M), inventory $160M. Key drivers of the weak quarter were soft “everyday” demand (Jan & Mar), a highly promotional environment, erosion of low-cost organic marketing channels, tariff exposure (estimated ~$55M potential impact), and problems from a recent order management system (OMS) implementation that added ~$4.6M in margin impact in the quarter and roughly $11M of incremental OMS-related costs across two quarters. Management has withdrawn guidance while navigating uncertainty. Leadership changes and strategic initiatives: Adolfo Villagomez named incoming CEO; Henry Mori hired as Chief AI and Transformation Officer; Shelly Palmer added to the board. The company unveiled its multi-year “Celebrations Wave” strategy — a sentiment-led celebrations ecosystem centered on a new app, a celebrations website, an enhanced loyalty program, greeting-card and low-cost engagement offerings, AI-driven personalization (AgenTeq AI), and better use of first-party data — intended to increase frequency, reduce customer acquisition cost, and diversify price points. Cost reduction plans target ~$40M annually (including $17M already executed). Management expects OMS issues to be resolved by the end of fiscal 2025 and to lean into selective retail testing (holiday and flagship concepts). Near-term: monitoring everyday demand, Easter/Mother’s Day seasonality, and tariff/promo pressures; guidance withdrawn until greater visibility.