1-800 Flowers.com Stock Earnings Reports

1-800-FLOWERS.COM (fiscal Q1 2026) is in an early-stage turnaround focused on stabilization and building a foundation for sustainable growth. Management shifted marketing strategy from bottom-of-funnel volume to a marketing contribution margin focus, which they say is already improving marketing efficiency and underlying profitability despite softer top-line results (Q1 revenue down 11.1%). They are consolidating paid traffic to core sites, centralizing marketing, improving coordination across teams, and expanding distribution beyond their own sites via Amazon and Walmart and seasonal pop-up stores to test a physical retail concept. Operating expense reductions are underway: $17 million of annualized savings have already been implemented and management identified an incremental $50 million of run-rate cost savings expected over the next two years (roughly half in fiscal 2026, half in fiscal 2027). Q1 adjusted EBITDA loss widened to $32.9 million from $27.9 million a year ago, but management says adjusted EBITDA trends (after timing adjustments, including wholesale order timing) showed the first year-over-year improvement in seven quarters. Gross margin was pressured by sales deleverage and higher tariffs (gross margin down 240 bps to 35.7%). Balance sheet: net debt $259.3M, cash $7.7M, inventory $269.8M; revolver borrowings of $110M expected to be repaid in Q2. Key risks called out include tariffs on Colombian flowers, commodity and transportation cost pressure, and near-term holiday season execution.