Latest news with #1-800-Flowers.comInc
Yahoo
09-05-2025
- Business
- Yahoo
1-800-Flowers.com Inc (FLWS) Q3 2025 Earnings Call Highlights: Strategic Shifts Amid Revenue ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inc (NASDAQ:FLWS) introduced a transformative long-term strategy called Celebrations Wave, aimed at enhancing customer engagement and driving growth. The company welcomed Adolfo Vela Gomez as the new CEO, bringing significant experience in leading consumer businesses and digital transformations. Henry Mori joined as the Chief AI and Transformation Officer, bringing expertise in AI-driven initiatives to drive growth and innovation. The company plans to reduce costs by approximately $40 million annually, with $17 million in reductions already executed. Celebrations Wave aims to leverage advanced technologies to create a comprehensive ecosystem for deeper customer relationships, expected to improve financial performance over the next few years. Inc (NASDAQ:FLWS) faced a challenging third quarter with a 12.6% decline in revenue, impacted by macroeconomic pressures and declining consumer confidence. The company experienced a significant decline in its consumer floral and gift segment and gourmet foods and gift basket segment. The implementation of a new order management system was mishandled, resulting in customer dissatisfaction and financial losses. The company recorded a non-cash goodwill and trade name impairment charge, impacting earnings for the period. Due to the evolving macroeconomic landscape and uncertainties, the company decided to withdraw its guidance, reflecting unpredictable external factors. Warning! GuruFocus has detected 5 Warning Signs with FLWS. Q: Can you provide more details on the impact of Valentine's Day and the Easter shift on quarterly sales? A: Jim McCann, Chairman and CEO, explained that Valentine's Day, which fell on a Friday, was favorable, but the softness in January and March affected the quarter. The Easter shift also impacted sales, with revenue down 12.6%, but adjusting for Easter, it would have been down 8.9%. Q: How much did the system implementation issues affect sales and costs? A: Jim McCann acknowledged the implementation of the order management system was a significant error, impacting customer satisfaction and sales. James Lankrock, CFO, noted the issues resulted in a $20+ million top-line impact in Q2 and $11 million in incremental costs over two quarters. Q: What is the timeline for the Celebrations Wave program, and what can be achieved in the first year? A: Jim McCann stated that the focus is on leveraging AI to improve efficiency and customer service. Tom Hartnett, President, added that the initial steps include enhancing relationship management capabilities and personalizing customer experiences, with foundational elements already in place for the forthcoming year. Q: How did the bifurcated market affect revenue, and was there a shift in customer spending? A: Tom Hartnett noted challenges with lower-income consumers reducing discretionary spending, while higher-income customers continued to spend, with average ticket prices increasing due to a broader range of price points. Q: Can you elaborate on the decision to exit retail during the pandemic and the current retail strategy? A: Jim McCann admitted exiting retail was a mistake, as multi-channel approaches are beneficial. The company is now testing holiday stores and year-round locations, with a focus on high-traffic areas and leveraging retail for brand exposure and customer interaction. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
San Francisco Chronicle
08-05-2025
- Business
- San Francisco Chronicle
1-800-Flowers.com: Fiscal Q3 Earnings Snapshot
JERICHO, N.Y. (AP) — JERICHO, N.Y. (AP) — Inc. (FLWS) on Thursday reported a loss of $178.2 million in its fiscal third quarter. The Jericho, New York-based company said it had a loss of $2.80 per share. Losses, adjusted for one-time gains and costs, came to 71 cents per share. The flower and gift retailer posted revenue of $331.5 million in the period. _____
Yahoo
31-01-2025
- Business
- Yahoo
1-800-Flowers.com Inc (FLWS) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Revenue Decline: 5.7% decrease in consolidated second quarter revenue. E-commerce Revenue Decline: 8.3% decrease in e-commerce business for the quarter. Average Order Value (AOV): Declined 1.2% for the quarter. Gross Margin: 43.3%, flat compared to the prior year. Adjusted Operating Expenses: Decreased by $2.9 million to $239 million. Adjusted EBITDA: $116.3 million, down from $130.1 million in the prior year period. Net Cash: $87 million, compared to $117 million at the end of last year's second quarter. Cash Balance: $247 million at the end of the second quarter. Inventory: Declined to $157 million from $161 million at the end of last year's second quarter. Term Debt: $160 million, with no borrowings under the revolving credit facility. Fiscal Year Revenue Guidance: Expected to decline in the mid-single digits. Adjusted EBITDA Guidance: Expected to be in the range of $65 million to $75 million. Free Cash Flow Guidance: Expected to be in the range of $25 million to $35 million. Warning! GuruFocus has detected 6 Warning Signs with FLWS. Release Date: January 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inc (NASDAQ:FLWS) successfully delivered over 7 million orders during the holiday season, demonstrating operational capability despite challenges. The company has made progress in its relationship innovation initiatives, focusing on enhancing customer engagement and satisfaction. Inc (NASDAQ:FLWS) is leveraging new technology to enhance customer engagement and build deeper relationships, aiming to transform into a comprehensive celebratory ecosystem. The company is focusing on expanding its customer base and sees significant opportunities to leverage AI for personalized marketing experiences. Inc (NASDAQ:FLWS) has a strong balance sheet, allowing potential for strategic M&A activities to enhance growth. The company's second quarter revenue declined by 5.7%, impacted by softer consumer demand and reduced corporate gifting orders. Implementation challenges with the new Harry and David Order Management System (OMS) negatively affected revenue and earnings, causing order cancellations and additional expenses. Increased marketing spend did not yield anticipated results due to changes in the online marketing environment, impacting marketing efficiency. The Average Order Value (AOV) declined by 1.2% for the quarter, reflecting cautious spending by corporate business partners. The company's e-commerce business declined by 8.3% for the quarter, with OMS-related issues reducing Q2 e-commerce revenue by approximately $20 million. Q: How have consumer engagement patterns changed post-pandemic, and did these shifts accelerate during the quarter? A: Andy Milevoj, Senior Vice President of Investor Relations, noted that the company is seeing the end of the "COVID bullwhip," where demand surged during the pandemic. Consumer demand has eased, and the company is introducing lower price points to attract customers. Tom Hartnett, President, added that lower-income customers are watching their budgets closely, and the company has seen positive responses to new product introductions at lower prices. Q: What were the issues with the new order management system, and when will it be fully functional? A: James McCann, CEO, explained that the system was implemented in late August but faced challenges during the holiday peak, causing order backlogs and cancellations. The company expects most issues to be resolved in the current quarter, with full functionality anticipated by the end of the fiscal year. Tom Hartnett added that while some challenges remain, they are manageable and not customer-facing. Q: How is the company approaching Valentine's Day marketing, especially with the Super Bowl timing? A: James McCann highlighted that Valentine's Day falls on a Friday this year, which is favorable for sales. The company plans to engage customers early, offering incentives to place orders before the Super Bowl. Tom Hartnett mentioned that the extra days between the Super Bowl and Valentine's Day will help capture both early planners and last-minute shoppers. Q: What is the outlook for the corporate gifting business, and how does it compare to pre-pandemic levels? A: Thomas Hartnett stated that corporate gifting was down 17.5% year-over-year, with reduced average order values and fewer orders. However, the company remains optimistic about the segment, planning to retool offerings and enhance year-round engagement with corporate clients. Q: How is the company addressing marketing strategy changes, and what impact do you expect from AI? A: Thomas Hartnett noted changes in search engine rankings affected low-cost channels, prompting a shift to mid and upper funnel channels. The company is refining content to be more relevant and expects AI to improve content creation efficiency. James McCann emphasized that technology investments will enhance both cost efficiency and revenue generation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Washington Post
30-01-2025
- Business
- Washington Post
1-800-Flowers.com: Fiscal Q2 Earnings Snapshot
JERICHO, N.Y. — JERICHO, N.Y. — Inc. (FLWS) on Thursday reported profit of $64.3 million in its fiscal second quarter. The Jericho, New York-based company said it had net income of $1 per share. Earnings, adjusted for one-time gains and costs, were $1.08 per share. The flower and gift retailer posted revenue of $775.5 million in the period.
