1-800-FLOWERS.COM (FLWS) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 2025 revenues were $242.1 million, down 10% year-over-year, with a net loss of $34.2 million; adjusted net loss was $32.9 million.

• Gross profit margin improved to 38.1% due to operational efficiencies, despite a 9.4% decline in gross profit.

• E-commerce revenue trends showed slight improvement, and operating expenses were reduced through efficiency initiatives.

• Strategic focus on Relationship Innovation and Work Smarter initiatives, with acquisitions of Scharffen Berger and Card Isle expanding offerings.

• Several wholesale gift basket orders shifted from Q1 to Q2, impacting timing but not annual expectations.

Financial highlights

• E-commerce revenues fell 8% year-over-year, with order volume down 6.5% and average order value down 1.5%.

• Adjusted EBITDA loss was $27.9 million, compared to a $22.5 million loss in the prior year.

• Free cash flow was negative $189.3 million, mainly due to inventory build for the holiday season.

• Cash and investments at quarter-end were $8.4 million; inventory was $275.3 million, down from $280.6 million a year ago.

• Total debt stood at $232.5 million, with $187.5 million in term debt and $45 million drawn on the revolver.

Outlook and guidance

• Fiscal 2025 guidance: total revenues flat to low/mid-single digit decline, Adjusted EBITDA of $85–$95 million, and free cash flow of $45–$55 million.

• Management anticipates improved sales trends in the holiday period, especially in gourmet foods and gifts.

• Wholesale revenues expected to increase by approximately $20 million year-over-year in Q2.

• BloomNet revenues expected to grow in the second half after lapping a partner merger impact.

• Revenue trend improvement anticipated as the year progresses, supported by expanded offerings and increased marketing.