1-800-FLOWERS.COM, Inc. Reports Fiscal 2025 Second Quarter Results
1-800-FLOWERS.COM (NASDAQ: FLWS) reported fiscal 2025 second quarter results with total revenues of $775.5 million, representing a 5.7% decline year-over-year. The company posted net income of $64.3 million, or $1.00 per diluted share, compared to $62.9 million in the prior year period.
Performance was impacted by a softer consumer environment, reduced corporate gifting orders, and issues with Harry & David's order management system implementation, which resulted in approximately $20 million in lost revenue. The Gourmet Foods segment declined 4.0%, Consumer Floral dropped 8.0%, and BloomNet decreased 16.2%.
The company updated its fiscal 2025 guidance, now expecting mid-single-digit revenue decline and Adjusted EBITDA between $65-75 million. Free Cash Flow is projected at $25-35 million.
1-800-FLOWERS.COM (NASDAQ: FLWS) ha riportato i risultati del secondo trimestre fiscale 2025 con ricavi totali di 775,5 milioni di dollari, che rappresentano un calo del 5,7% rispetto all'anno precedente. L'azienda ha registrato un utile netto di 64,3 milioni di dollari, ovvero $1,00 per azione diluita, rispetto ai 62,9 milioni di dollari del periodo dell'anno precedente.
Le performance sono state influenzate da un ambiente dei consumatori più debole, dalla riduzione degli ordini di regali aziendali e da problemi legati all'implementazione del sistema di gestione ordini di Harry & David, che hanno comportato circa 20 milioni di dollari di entrate perse. Il segmento dei prodotti alimentari gourmet è diminuito del 4,0%, i fiori per consumo sono calati dell'8,0% e BloomNet è diminuito del 16,2%.
L'azienda ha aggiornato le proprie previsioni per il fiscale 2025, ora prevedendo un calo del fatturato a cifra singola a metà e un EBITDA rettificato tra 65-75 milioni di dollari. Si prevede un flusso di cassa libero tra i 25-35 milioni di dollari.
1-800-FLOWERS.COM (NASDAQ: FLWS) reportó los resultados del segundo trimestre fiscal 2025 con ingresos totales de 775,5 millones de dólares, lo que representa una caída del 5,7% en comparación con el año anterior. La compañía reportó un ingreso neto de 64,3 millones de dólares, o $1.00 por acción diluida, en comparación con 62,9 millones de dólares en el mismo período del año anterior.
El rendimiento se vio afectado por un entorno del consumidor más débil, la reducción de pedidos de regalos corporativos y problemas con la implementación del sistema de gestión de pedidos de Harry & David, lo que resultó en aproximadamente 20 millones de dólares en ingresos perdidos. El segmento de alimentos gourmet disminuyó un 4,0%, flores de consumo cayó un 8,0% y BloomNet disminuyó un 16,2%.
La empresa actualizó su guía fiscal 2025, ahora esperando una disminución en ingresos de un solo dígito a medio y un EBITDA ajustado entre 65-75 millones de dólares. Se prevé un flujo de efectivo libre de entre 25-35 millones de dólares.
1-800-FLOWERS.COM (NASDAQ: FLWS)는 2025 회계연도 2분기 실적을 보고하며 총 수익이 7억 7천 5백 50만 달러로 지난해 대비 5.7% 감소했다고 발표했다. 이번 분기는 6천 4백 30만 달러의 순이익을 기록했으며, 이는 희석 주당 $1.00에 해당하며, 전년도 같은 기간의 6천 2백 90만 달러에 비해 증가했다.
성과는 소비자 환경의 둔화, 기업 기프트 주문의 감소, 해리 & 데이비드의 주문 관리 시스템 구현 문제로 인해 약 2천만 달러의 수익 손실을 초래했다. 고급 식품 부문은 4.0% 감소했으며, 소비자 꽃 부문은 8.0% 하락했고, 블룸넷은 16.2% 감소했다.
회사는 2025 회계연도 가이드를 업데이트하여 현재 중간 단일 자릿수의 수익 감소 및 조정된 EBITDA가 6천 5백만에서 7천5백만 달러 사이가 될 것으로 예상한다고 밝혔다. 잉여 현금 흐름은 2천5백만에서 3천5백만 달러 사이일 것으로 예상된다.
1-800-FLOWERS.COM (NASDAQ: FLWS) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des revenus totaux de 775,5 millions de dollars, représentant une baisse de 5,7 % par rapport à l'année précédente. L'entreprise a enregistré un bénéfice net de 64,3 millions de dollars, soit 1,00 $ par action diluée, contre 62,9 millions de dollars au cours de la même période l'année précédente.
La performance a été affectée par un environnement de consommation plus faible, une réduction des commandes de cadeaux d'entreprise et des problèmes liés à la mise en œuvre du système de gestion des commandes de Harry & David, ce qui a entraîné environ 20 millions de dollars de revenus perdus. Le segment des aliments gastronomiques a diminué de 4,0 %, les fleurs pour les consommateurs ont chuté de 8,0 % et BloomNet a reculé de 16,2 %.
L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant désormais à un déclin des revenus à un chiffre unique moyen et un EBITDA ajusté entre 65 et 75 millions de dollars. Le flux de trésorerie disponible est projeté entre 25 et 35 millions de dollars.
1-800-FLOWERS.COM (NASDAQ: FLWS) berichtete über die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 mit einem Gesamtumsatz von 775,5 Millionen US-Dollar, was einem Rückgang von 5,7 % im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen Nettojahresüberschuss von 64,3 Millionen US-Dollar, oder 1,00 US-Dollar pro verwässerter Aktie, verglichen mit 62,9 Millionen US-Dollar im Vorjahreszeitraum.
Die Leistung wurde durch ein schwächeres Konsumumfeld, reduzierte Unternehmensgeschenke-Bestellungen und Probleme bei der Implementierung des Bestellmanagementsystems von Harry & David beeinträchtigt, was zu einem Umsatzverlust von etwa 20 Millionen US-Dollar führte. Der Gourmet-Lebensmittelbereich sank um 4,0 %, der Verbraucherflora-Bereich fiel um 8,0 % und BloomNet verringerte sich um 16,2 %.
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet nun einen Rückgang des Umsatzes um mittlere einstellig Prozentzahlen und ein bereinigtes EBITDA zwischen 65 und 75 Millionen US-Dollar. Der freie Cashflow wird auf 25 bis 35 Millionen US-Dollar geschätzt.
- Net income increased to $64.3 million from $62.9 million year-over-year
- Gourmet Foods segment gross profit margin improved by 30 basis points to 43.5%
- BloomNet gross profit margin increased 330 basis points to 50.9%
- Operating expenses declined by $19.9 million to $244.5 million
- Total revenue declined 5.7% to $775.5 million
- Lost approximately $20 million in revenue due to order management system issues
- Consumer Floral & Gifts revenue dropped 8.0% with 90 basis points margin decrease
- BloomNet revenue declined 16.2% year-over-year
- Adjusted EBITDA decreased to $116.3 million from $130.1 million
- Company lowered fiscal 2025 guidance, expecting mid-single-digit revenue decline
Insights
The Q2 FY2025 results from 1-800-FLOWERS.COM present a complex picture with several concerning trends that warrant careful analysis. The
The Gourmet Foods and Gift Baskets segment, representing about
The Consumer Floral & Gifts segment's
The credit agreement amendment, while providing additional flexibility, suggests management is preparing for continued operational challenges. The revised definitions of Consolidated EBITDA and Fixed Charges indicate a proactive approach to maintaining financial covenant compliance during this transitional period.
The company's focus on 'Relationship Innovation' initiatives and expanded price points demonstrates awareness of the need to adapt to changing consumer behaviors. However, the reduced guidance for fiscal 2025 suggests these initiatives may take longer than initially expected to gain traction. The projected free cash flow of
Generates Revenues of
Reports Adjusted EBITDA(1) of
Updates Fiscal Year 2025 Outlook
(1) Refer to “Definitions of Non-GAAP Financial Measures” and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results.
“Our second quarter revenue declined
Mr. McCann continued, “Shifting patterns in consumer engagement have affected our performance. We are implementing actions to accelerate our Work Smarter efficiency initiatives that will in turn fund investments in our growth-oriented Relationship Innovation™ initiatives and marketing and sales strategies. As we focus on expanding our customer base, we see significant opportunities to leverage new technology to enhance engagement and build deeper relationships with our customers. We are confident that our dedicated team and innovative solutions will help us navigate these headwinds and emerge stronger.”
Fiscal 2025 Second Quarter Highlights
-
Total consolidated revenues decreased
5.7% to$775.5 million
-
Gross profit margin of
43.3% was flat with the prior year period.
-
Operating expenses declined
$19.9 million $244.5 million $2.9 million $239.1 million
-
Net income for the quarter was
$64.3 million $1.00 $62.9 million $0.97
-
Adjusted Net Income1 was
$69.2 million $1.08 $82.7 million $1.27
-
Adjusted EBITDA1 for the quarter was
$116.3 million $130.1 million
Segment Results
The Company provides Fiscal 2025 second quarter financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet® segments in the tables attached to this release and as follows:
-
Gourmet Foods and Gift Baskets: Revenues for the quarter declined
4.0% to$518.5 million $20 million 43.5% , benefiting from the Company’s inventory and labor optimization efforts that offset the incremental costs associated with the order management system issues. Excluding the impact of the systems implementation costs, adjusted segment contribution margin1 was$111.4 million $118.2 million
-
Consumer Floral & Gifts: Revenues for the quarter declined
8.0% to$234.3 million 41.9% , primarily due to deleveraging on the sales decline and a promotional consumer environment. Segment contribution margin1 was$21.6 million $30.4 million
-
BloomNet: Revenues for the quarter declined
16.2% to$22.8 million 50.9% due to lower florist rebates. Segment contribution margin1 was$7.5 million $9.1 million
Company Guidance
Based on the Company’s performance during its fiscal second quarter, the Company is updating its Fiscal 2025 guidance as outlined below. The Company expects its revenue trends to improve as the fiscal year progresses, benefiting from its Relationship Innovation initiatives that have expanded the Company's offerings, broadened price points and enhanced the user experience.
For Fiscal 2025, the company now expects:
- total revenues to decline in the mid-single digits on a percentage basis, as compared with the prior year;
-
Adjusted EBITDA1 to be in a range of
$65 million $75 million -
Free Cash Flow1 to be in a range of
$25 million $35 million
Credit Agreement Amendment
The Company today announced that it has amended its credit agreement in order to provide more clarity and flexibility to the Company going forward.
Key changes effected by the amendment include revising the definition of Consolidated EBITDA, clarifying the application of optional term loan prepayments toward scheduled principal payments, and revising the definition of Consolidated Fixed Charges. Additional information can be found in the Company’s Form 8-K that was filed with the SEC this morning.
Conference Call
The Company will conduct a conference call to discuss the above details and attached financial results today, January 30, 2025, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) today through February 6, 2025, at: (US) 1-877-344-7529; (
Definitions of non-GAAP Financial Measures:
We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with
EBITDA and Adjusted EBITDA:
We define EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan (“NQDC”) Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.
Segment Contribution Margin and Adjusted Segment Contribution Margin
We define Segment Contribution Margin as earnings before interest, taxes, depreciation, and amortization, before the allocation of corporate overhead expenses. Adjusted Segment Contribution Margin is defined as Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. When viewed together with our GAAP results, we believe Segment Contribution Margin and Adjusted Segment Contribution Margin provide management and users of the financial statements meaningful information about the performance of our business segments. Segment Contribution Margin and Adjusted Segment Contribution Margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of Segment Contribution Margin and Adjusted Segment Contribution Margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income and Net Income.
Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share:
We define Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share as Net Income (Loss) and Net Income (Loss) Per Common Share adjusted for certain items affecting period-to-period comparability. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. We believe that Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per Common Share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.
Free Cash Flow:
We define Free Cash Flow as net cash provided by operating activities less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of Free Cash Flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, CardIsle®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of America’s Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com.
FLWS–COMP
FLWS-FN
Special Note Regarding Forward Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “should,” “will,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company’s ability to achieve its guidance for the full Fiscal year; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.
Note: The following tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.
1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) |
||||||||
|
December 29, 2024 |
|
|
June 30, 2024 |
|
|||
|
|
|
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
247,220 |
|
|
$ |
159,437 |
|
Trade receivables, net |
|
|
61,352 |
|
|
|
18,024 |
|
Inventories |
|
|
157,438 |
|
|
|
176,591 |
|
Prepaid and other |
|
|
26,884 |
|
|
|
31,680 |
|
Total current assets |
|
|
492,894 |
|
|
|
385,732 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
223,178 |
|
|
|
223,789 |
|
Operating lease right-of-use assets |
|
|
110,455 |
|
|
|
113,926 |
|
Goodwill |
|
|
156,648 |
|
|
|
156,537 |
|
Other intangibles, net |
|
|
115,079 |
|
|
|
116,216 |
|
Other assets |
|
|
39,516 |
|
|
|
36,448 |
|
Total assets |
|
$ |
1,137,770 |
|
|
$ |
1,032,648 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
113,588 |
|
|
$ |
80,005 |
|
Accrued expenses |
|
|
193,558 |
|
|
|
121,303 |
|
Current maturities of long-term debt |
|
|
- |
|
|
|
10,000 |
|
Current portion of long-term operating lease liabilities |
|
|
18,490 |
|
|
|
16,511 |
|
Total current liabilities |
|
|
325,636 |
|
|
|
227,819 |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
157,474 |
|
|
|
177,113 |
|
Long-term operating lease liabilities |
|
|
102,038 |
|
|
|
105,866 |
|
Deferred tax liabilities, net |
|
|
17,905 |
|
|
|
19,402 |
|
Other liabilities |
|
|
39,610 |
|
|
|
36,106 |
|
Total liabilities |
642,663 |
|
|
|
566,306 |
|
||
Total stockholders’ equity |
|
|
495,107 |
|
|
|
466,342 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,137,770 |
|
|
$ |
1,032,648 |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited) |
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|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
December 29, 2024 |
|
|
December 31, 2023 |
|
|
December 29, 2024 |
|
|
December 31, 2023 |
|
||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-Commerce |
|
$ |
677,326 |
|
|
$ |
738,406 |
|
|
$ |
870,500 |
|
|
$ |
948,317 |
|
Other |
|
|
98,166 |
|
|
|
83,648 |
|
|
|
147,082 |
|
|
|
142,787 |
|
Total net revenues |
|
|
775,492 |
|
|
|
822,054 |
|
|
|
1,017,582 |
|
|
|
1,091,104 |
|
Cost of revenues |
|
|
439,899 |
|
|
|
466,357 |
|
|
|
589,670 |
|
|
|
633,479 |
|
Gross profit |
|
|
335,593 |
|
|
|
355,697 |
|
|
|
427,912 |
|
|
|
457,625 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Marketing and sales |
|
|
187,003 |
|
|
|
188,557 |
|
|
|
269,100 |
|
|
|
271,075 |
|
Technology and development |
|
|
15,973 |
|
|
|
14,822 |
|
|
|
31,612 |
|
|
|
30,126 |
|
General and administrative |
|
|
27,410 |
|
|
|
27,154 |
|
|
|
55,936 |
|
|
|
55,643 |
|
Depreciation and amortization |
|
|
14,130 |
|
|
|
14,152 |
|
|
|
27,168 |
|
|
|
27,346 |
|
Intangible impairment |
|
|
- |
|
|
|
19,762 |
|
|
|
- |
|
|
|
19,762 |
|
Total operating expenses |
|
|
244,516 |
|
|
|
264,447 |
|
|
|
383,816 |
|
|
|
403,952 |
|
Operating income |
|
|
91,077 |
|
|
|
91,250 |
|
|
|
44,096 |
|
|
|
53,673 |
|
Interest expense, net |
|
|
4,396 |
|
|
|
4,611 |
|
|
|
7,756 |
|
|
|
8,093 |
|
Other income, net |
|
|
(1,164 |
) |
|
|
(2,736 |
) |
|
|
(2,931 |
) |
|
|
(2,262 |
) |
Income before income taxes |
|
|
87,845 |
|
|
|
89,375 |
|
|
|
39,271 |
|
|
|
47,842 |
|
Income tax expense |
|
|
23,497 |
|
|
|
26,468 |
|
|
|
9,113 |
|
|
|
16,177 |
|
Net income |
|
$ |
64,348 |
|
|
$ |
62,907 |
|
|
$ |
30,158 |
|
|
$ |
31,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic net income per common share |
|
$ |
1.01 |
|
|
$ |
0.97 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per common share |
|
$ |
1.00 |
|
|
$ |
0.97 |
|
|
$ |
0.47 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares used in the calculation of net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Basic |
|
|
63,836 |
|
|
|
64,835 |
|
|
|
64,017 |
|
|
|
64,814 |
|
Diluted |
|
|
64,306 |
|
|
|
65,177 |
|
|
|
64,501 |
|
|
|
65,155 |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited) |
||||||||
|
|
|
Six Months Ended |
|
||||
|
|
|
December 29, 2024 |
|
|
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
30,158 |
|
|
$ |
31,665 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Intangible impairment |
|
|
- |
|
|
|
19,762 |
|
Depreciation and amortization |
|
|
27,168 |
|
|
|
27,346 |
|
Amortization of deferred financing costs |
|
|
361 |
|
|
|
361 |
|
Deferred income taxes |
|
|
(1,496 |
) |
|
|
(6,108) |
|
Bad debt expense |
|
|
131 |
|
|
|
225 |
|
Stock-based compensation |
|
|
6,108 |
|
|
|
4,595 |
|
Other non-cash items |
|
|
(412 |
) |
|
|
(385) |
|
Changes in operating items: |
|
|
|
|
|
|
|
|
Trade receivables |
|
|
(43,400 |
) |
|
|
(26,384) |
|
Inventories |
|
|
20,446 |
|
|
|
29,808 |
|
Prepaid and other |
|
|
5,850 |
|
|
|
6,640 |
|
Accounts payable and accrued expenses |
|
|
104,671 |
|
|
|
125,404 |
|
Other assets and liabilities |
|
|
1,722 |
|
|
|
(169) |
|
Net cash provided by operating activities |
|
|
151,307 |
|
|
|
212,760 |
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Acquisitions, net of cash acquired |
|
|
(3,000 |
) |
|
|
- |
|
Capital expenditures |
|
|
(23,023 |
) |
|
|
(17,807) |
|
Net cash used in investing activities |
|
|
(26,023 |
) |
|
|
(17,807) |
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Acquisition of treasury stock |
|
|
(7,683 |
) |
|
|
(4,787) |
|
Proceeds from exercise of employee stock options |
|
|
182 |
|
|
|
44 |
|
Proceeds from bank borrowings |
|
|
110,000 |
|
|
|
82,000 |
|
Repayment of bank borrowings |
|
|
(140,000 |
) |
|
|
(87,000) |
|
Net cash used in financing activities |
|
|
(37,501 |
) |
|
|
(9,743) |
|
|
|
|
|
|
|
|||
Net change in cash and cash equivalents |
|
|
87,783 |
|
|
|
185,210 |
|
Cash and cash equivalents: |
|
|
|
|
|
|
||
Beginning of period |
|
|
159,437 |
|
|
|
126,807 |
|
End of period |
|
$ |
247,220 |
|
|
$ |
312,017 |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited) |
||||||||||||||
Three Months Ended |
||||||||||||||
December 29, 2024 |
System Implementation costs |
As Adjusted (non-GAAP) December 29, 2024 |
December 31, 2023 |
Intangible Impairment |
As Adjusted (non-GAAP) December 31, 2023 |
% Change |
||||||||
Net revenues: |
|
|||||||||||||
Consumer Floral & Gifts |
$ |
234,349 |
$ |
- |
$ |
234,349 |
$ |
254,835 |
$ |
- |
$ |
254,835 |
- |
|
BloomNet |
|
22,837 |
|
- |
|
22,837 |
|
27,236 |
|
- |
|
27,236 |
- |
|
Gourmet Foods & Gift Baskets |
|
518,454 |
|
- |
|
518,454 |
|
539,963 |
|
- |
|
539,963 |
- |
|
Corporate |
|
113 |
|
- |
|
113 |
|
279 |
|
- |
|
279 |
- |
|
Intercompany eliminations |
|
(261) |
|
- |
|
(261) |
|
(259) |
|
- |
|
(259) |
- |
|
Total net revenues |
$ |
775,492 |
$ |
- |
$ |
775,492 |
$ |
822,054 |
$ |
- |
$ |
822,054 |
- |
|
Gross profit: |
||||||||||||||
Consumer Floral & Gifts |
$ |
98,288 |
$ |
- |
$ |
98,288 |
$ |
109,176 |
$ |
- |
$ |
109,176 |
- |
|
|
|
|
|
|
|
|
|
|||||||
BloomNet |
|
11,624 |
|
- |
|
11,624 |
|
12,974 |
|
- |
|
12,974 |
- |
|
|
|
|
|
|
|
|
|
|||||||
Gourmet Foods & Gift Baskets |
|
225,390 |
|
1,992 |
|
227,382 |
|
233,200 |
|
- |
|
233,200 |
- |
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
291 |
|
- |
|
291 |
|
347 |
|
- |
|
347 |
- |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||||
Total gross profit |
$ |
335,593 |
$ |
1,992 |
$ |
337,585 |
$ |
355,697 |
$ |
- |
$ |
355,697 |
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|||
EBITDA (non-GAAP): |
||||||||||||||
Segment Contribution Margin (non-GAAP) (a): |
||||||||||||||
Consumer Floral & Gifts |
$ |
21,587 |
$ |
- |
$ |
21,587 |
$ |
10,593 |
$ |
19,762 |
$ |
30,355 |
- |
|
BloomNet |
|
7,460 |
|
- |
|
7,460 |
|
9,088 |
|
- |
|
9,088 |
- |
|
Gourmet Foods & Gift Baskets |
|
107,277 |
|
4,166 |
|
111,443 |
|
118,153 |
|
- |
|
118,153 |
- |
|
Segment Contribution Margin Subtotal |
|
136,324 |
|
4,166 |
|
140,490 |
|
137,834 |
|
19,762 |
|
157,596 |
- |
|
Corporate (b) |
|
(31,117) |
|
2,141 |
|
(28,976) |
|
(32,432) |
|
- |
|
(32,432) |
|
|
EBITDA (non-GAAP) |
|
105,207 |
|
6,307 |
|
111,514 |
|
105,402 |
|
19,762 |
|
125,164 |
- |
|
Add: Stock-based compensation |
|
3,629 |
|
- |
|
3,629 |
|
2,231 |
|
- |
|
2,231 |
|
|
Add: Compensation charge related to NQDC Plan Investment Appreciation |
|
1,135 |
|
- |
|
1,135 |
|
2,682 |
|
- |
|
2,682 |
- |
|
Adjusted EBITDA (non-GAAP) |
$ |
109,971 |
$ |
6,307 |
$ |
116,278 |
$ |
110,315 |
$ |
19,762 |
$ |
130,077 |
- |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited) |
||||||||||||||
Six Months Ended |
||||||||||||||
December 29, 2024 |
System Implementation Cost |
As Adjusted (non-GAAP) December 29, 2024 |
December 31, 2023 |
Intangible Impairment |
As Adjusted (non-GAAP) December 31, 2023 |
% Change |
||||||||
Net revenues: |
||||||||||||||
Consumer Floral & Gifts |
$ |
369,529 |
$ |
- |
$ |
369,529 |
$ |
397,029 |
$ |
- |
$ |
397,029 |
- |
|
BloomNet |
|
45,912 |
|
- |
|
45,912 |
|
56,106 |
|
- |
|
56,106 |
- |
|
Gourmet Foods & Gift Baskets |
|
602,457 |
|
- |
|
602,457 |
|
638,072 |
|
- |
|
638,072 |
- |
|
Corporate |
|
202 |
|
- |
|
202 |
|
549 |
|
- |
|
549 |
- |
|
Intercompany eliminations |
|
(518) |
|
- |
|
(518) |
|
(652) |
|
- |
|
(652) |
|
|
Total net revenues |
$ |
1,017,582 |
$ |
- |
$ |
1,017,582 |
$ |
1,091,104 |
$ |
- |
$ |
1,091,104 |
- |
|
Gross profit: |
||||||||||||||
Consumer Floral & Gifts |
$ |
152,217 |
$ |
- |
$ |
152,217 |
$ |
165,498 |
$ |
- |
$ |
165,498 |
- |
|
|
|
|
|
|
|
|
|
|||||||
BloomNet |
|
23,152 |
|
- |
|
23,152 |
|
27,472 |
|
- |
|
27,472 |
- |
|
|
|
|
|
|
|
|
|
|||||||
Gourmet Foods & Gift Baskets |
|
252,234 |
|
1,992 |
|
254,226 |
|
264,107 |
|
- |
|
264,107 |
- |
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
309 |
|
- |
|
309 |
|
548 |
|
- |
|
548 |
- |
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||||
Total gross profit |
$ |
427,912 |
$ |
1,992 |
$ |
429,904 |
$ |
457,625 |
$ |
- |
$ |
457,625 |
- |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|||
EBITDA (non-GAAP): |
||||||||||||||
Segment Contribution Margin (non-GAAP) (a): |
||||||||||||||
Consumer Floral & Gifts |
$ |
26,531 |
$ |
- |
$ |
26,531 |
$ |
19,419 |
$ |
19,762 |
$ |
39,181 |
- |
|
BloomNet |
|
14,301 |
|
- |
|
14,301 |
|
18,475 |
|
- |
|
18,475 |
- |
|
Gourmet Foods & Gift Baskets |
|
95,024 |
|
5,079 |
|
100,103 |
|
107,125 |
|
- |
|
107,125 |
- |
|
Segment Contribution Margin Subtotal |
|
135,856 |
|
5,079 |
|
140,935 |
|
145,019 |
|
19,762 |
|
164,781 |
- |
|
Corporate (b) |
|
(64,592) |
|
3,008 |
|
(61,584) |
|
(64,000) |
|
- |
|
(64,000) |
|
|
EBITDA (non-GAAP) |
|
71,264 |
|
8,087 |
|
79,351 |
|
81,019 |
|
19,762 |
|
100,781 |
- |
|
Add: Stock-based compensation |
|
6,108 |
|
- |
|
6,108 |
|
4,595 |
|
- |
|
4,595 |
|
|
Add: Compensation charge related to NQDC Plan Investment Appreciation |
|
2,873 |
|
- |
|
2,873 |
|
2,178 |
|
- |
|
2,178 |
|
|
Adjusted EBITDA (non-GAAP) |
$ |
80,245 |
$ |
8,087 |
$ |
88,332 |
$ |
87,792 |
$ |
19,762 |
$ |
107,554 |
- |
|
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) |
|||||||||||
Reconciliation of net income to adjusted net income (non-GAAP): |
Three Months Ended |
Six Months Ended |
|||||||||
December 29, 2024 |
December 31, 2023 |
December 29, 2024 |
December 31, 2023 |
||||||||
Net income |
$ |
64,348 |
$ |
62,907 |
$ |
30,158 |
$ |
31,665 |
|||
Adjustments to reconcile net income to adjusted net income (non-GAAP) |
|||||||||||
Add: System implementation costs |
|
6,307 |
|
- |
|
8,087 |
|
- |
|||
Add: Intangible impairment |
|
- |
|
|
19,762 |
|
|
- |
|
|
19,762 |
Deduct: Income tax effect on adjustments |
|
(1,475) |
|
- |
|
(2,002) |
|
- |
|||
Adjusted net income (non-GAAP) |
$ |
69,180 |
$ |
82,669 |
$ |
36,243 |
$ |
51,427 |
|||
Basic and diluted net income per common share |
|||||||||||
Basic |
$ |
1.01 |
$ |
0.97 |
$ |
0.47 |
$ |
0.49 |
|||
Diluted |
$ |
1.00 |
$ |
0.97 |
$ |
0.47 |
$ |
0.49 |
|||
Basic and diluted adjusted net income per common share (non-GAAP) |
|||||||||||
Basic |
$ |
1.08 |
$ |
1.28 |
$ |
0.57 |
$ |
0.79 |
|||
Diluted |
$ |
1.08 |
$ |
1.27 |
$ |
0.56 |
$ |
0.79 |
|||
Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share |
|||||||||||
Basic |
|
63,836 |
|
64,835 |
|
64,017 |
|
64,814 |
|||
Diluted |
|
64,306 |
|
65,177 |
|
64,501 |
|
65,155 |
|||
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) |
|||||||||||
Reconciliation of net income to adjusted EBITDA (non-GAAP): |
Three Months Ended |
Six Months Ended |
|||||||||
December 29, 2024 |
December 31, 2023 |
December 29, 2024 |
December 31, 2023 |
||||||||
Net income |
$ |
64,348 |
$ |
62,907 |
$ |
30,158 |
$ |
31,665 |
|||
Add: Interest expense and other, net |
|
3,232 |
|
1,875 |
|
4,825 |
|
5,831 |
|||
Add: Depreciation and amortization |
|
14,130 |
|
14,152 |
|
27,168 |
|
27,346 |
|||
Add: Income tax expense |
|
23,497 |
|
26,468 |
|
9,113 |
|
16,177 |
|||
EBITDA |
|
105,207 |
|
105,402 |
|
71,264 |
|
81,019 |
|||
Add: Stock-based compensation |
|
3,629 |
|
2,231 |
|
6,108 |
|
4,595 |
|||
Add: Compensation charge related to NQDC Plan Investment Appreciation |
|
1,135 |
|
2,682 |
|
2,873 |
|
2,178 |
|||
Add: System implementation costs |
|
6,307 |
|
|
- |
|
|
8,087 |
|
|
- |
Add: Intangible impairment |
|
- |
|
19,762 |
|
- |
|
19,762 |
|||
Adjusted EBITDA |
$ |
116,278 |
$ |
130,077 |
$ |
88,332 |
$ |
107,554 |
|||
|
|
|
|
|
|
|
|
||||
(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance. |
|||||||||||
|
|||||||||||
(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. |
|||||||||||
1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited) |
|||||
Reconciliation of net cash provided by operating activities to free cash flow (non-GAAP): |
Six Months Ended |
||||
|
December 29, 2024 |
|
December 31, 2023 |
||
Net cash provided by operating activities |
$ |
151,307 |
|
$ |
212,760 |
Capital expenditures |
|
(23,023) |
|
|
(17,807) |
Free cash flow |
$ |
128,284 |
|
$ |
194,953 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130324553/en/
Investor Contact:
Andy Milevoj
amilevoj@1800flowers.com
Media Contact:
Cherie Gallarello
cgallarello@1800flowers.com
Source: 1-800-FLOWERS.COM, Inc.
FAQ
What caused FLWS revenue decline in Q2 2025?
How much did FLWS earn per share in Q2 2025?
What is FLWS's updated guidance for fiscal 2025?
How did FLWS's different segments perform in Q2 2025?
