1 800 FLOWERS COM INC SEC 10-K Report
1-800-FLOWERS.COM, Inc., a leading provider of floral and gourmet food gifts, has released its Form 10-K report for fiscal 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the current market environment.
Financial Highlights
Total Net Revenues: $1,685.7 million, a decrease of 8.0% compared to fiscal 2024, primarily due to continued slowing demand for everyday gifting occasions as discretionary income remains under pressure.
Gross Profit: $652.3 million, a decrease of 11.2% from fiscal 2024, with a gross margin of 38.7%, down 140 basis points due to higher cost of merchandise and deleveraging of fixed costs.
Net Loss: $200.0 million, compared with a net loss of $6.1 million in fiscal 2024, driven by lower sales, reduced gross margin, and increased advertising costs.
Basic and Diluted Net Loss Per Common Share: $(3.13), compared to $(0.09) in fiscal 2024, reflecting the significant increase in net loss.
Business Highlights
Revenue Segments: The company operates in three business segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. Each segment includes a variety of brands and product offerings, such as 1-800-Flowers.com, Personalization Mall, Harry & David, and BloomNet services.
New Product Launches: The company expanded its product offerings with the acquisition of Scharffen Berger, a manufacturer of premium chocolate and specialty treats, and Card Isle, an e-commerce greeting card company, enhancing its presence in the greeting card category.
Operational Strategy: The company is focused on building a 'Celebratory Ecosystem' by integrating its premium gifting brands and expanding its suite of products and services to enhance customer relationships and increase purchase frequency.
Future Outlook: For fiscal 2026, the company aims to transform into a customer-centric, data-driven organization with a focus on driving cost savings, organizational efficiency, and broadening its reach into new channels.
Acquisitions: Recent acquisitions include Things Remembered, Card Isle, and Scharffen Berger, which are expected to enhance the company's product offerings and market presence.
Operational Challenges: The company faced challenges due to macroeconomic conditions, including a decline in consumer confidence and a highly promotional environment during the holidays, impacting demand for everyday gifting occasions.
Technology and Infrastructure: The company continues to invest in technology infrastructure to enhance the customer shopping experience and improve operational efficiency, including the use of advanced analytics and marketing automation technologies.
Seasonality: The company's business is highly seasonal, with significant revenue generated during the Thanksgiving through Christmas holiday season, as well as during major floral gifting occasions like Mother’s Day and Valentine’s Day.
Strategic Initiatives
Strategic Initiatives: The company is focusing on transforming into a customer-centric, data-driven organization to support its multi-year Celebrations strategy and fuel future growth. Strategic priorities include driving cost savings and organizational efficiency, broadening reach beyond e-commerce into new channels, and strengthening the team through enhanced talent and accountability.
Capital Management: The company repurchased $10.2 million worth of its own shares during fiscal 2025 under its stock repurchase plan, with $11.4 million remaining authorized for future repurchases. The company made payments of $30.0 million on its Term Loan, including a $25.0 million voluntary prepayment, and had no amounts outstanding under the revolving credit facility as of June 29, 2025. The company does not anticipate paying cash dividends in the foreseeable future due to existing credit facility limitations.
Future Outlook: For fiscal 2026, the company expects to borrow under its revolving credit facility to fund pre-holiday manufacturing and inventory purchases, with plans to repay all working capital borrowings by the end of the second quarter. The company aims to position itself for sustainable revenue and profit growth through strategic initiatives focused on agility and customer-centricity.
Challenges and Risks
Market Competition: The company faces significant competition across its product categories, including floral, plant, gift basket, and gourmet foods. This competition could lead to price reductions, decreased revenues, and lower profit margins.
Supply Chain Risks: The company is exposed to risks related to its reliance on international vendors for flowers and other products, which could be affected by regulatory changes, political instability, and trade restrictions.
Macroeconomic Conditions: The company is subject to macroeconomic conditions that could impact consumer spending, such as high unemployment, fluctuating interest rates, and economic uncertainty. These factors could reduce demand for the company's products.
Operational Risks: The company faces risks from increased shipping costs and supply chain disruptions, which could affect product delivery and customer satisfaction.
Cybersecurity Threats: The company is exposed to cybersecurity threats that could harm its reputation and result in significant costs.
Regulatory Risks: Compliance with evolving laws related to e-commerce, privacy, and data protection could increase operational costs and affect business practices.
Market Risks: The company is exposed to market risks, including fluctuations in foreign currency exchange rates, which could impact financial results. Additionally, changes in interest rates could affect the company's borrowing costs and financial performance. The company is also subject to risks related to commodity price fluctuations, which could impact the cost of raw materials and overall profitability.
SEC Filing: 1 800 FLOWERS COM INC [ FLWS ] - 10-K - Sep. 05, 2025