In This Article:
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Consolidated Revenue Decline: 10% decline in Q1 revenue.
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E-commerce Revenue Decline: 8% decline in e-commerce revenue.
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Orders and AOV: Orders declined 6.5%, AOV declined 1.5%.
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Gourmet Food and Gift Baskets Revenue Decline: 14.4% decline, with $3 million of orders shifted to Q2.
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Consumer Floral and Gifts Revenue Decline: 4.9% decline.
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BloomNet Revenue Decline: 20.1% decline.
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Gross Margin: Increased to 38.1%.
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Operating Expenses: $4.3 million decline in operating expenses.
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Net Loss: $27.9 million loss.
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Cash and Investments: $8.4 million at the end of Q1.
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Inventory: $275.3 million, down from $280.6 million last year.
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Total Debt: $232.5 million.
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Guidance for Fiscal 2025: Revenue expected to be flat to mid-single-digit decline; adjusted EBITDA of $85 to $95 million; free cash flow of $45 to $55 million.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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1-800-Flowers.com Inc (NASDAQ:FLWS) saw an improvement in e-commerce revenue trends, with a smaller decline in orders compared to previous quarters.
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The company successfully reduced operating expenses through its 'work smarter' initiatives, enhancing operational efficiency.
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1-800-Flowers.com Inc (NASDAQ:FLWS) expanded its same-day delivery offerings, particularly in the gourmet food segment, leveraging its existing floral delivery infrastructure.
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The integration of SFN Burger chocolates into Harry and David was completed, and new product launches are expected to boost holiday sales.
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The company formed strategic partnerships, such as with Macy's for Harry and David pop-up shops, which could enhance brand visibility and customer engagement.
Negative Points
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Consolidated Q1 revenue declined by 10%, with e-commerce revenue down 8%, reflecting ongoing challenges in consumer spending.
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Average Order Value (AOV) decreased by 1.5%, indicating pressure on pricing and consumer spending habits.
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The BloomNet segment experienced a significant revenue decline of 20.1% due to a loss of orders from a business partner merger.
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Media costs are expected to be higher due to the election cycle, potentially impacting marketing efficiency.
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The company faces ongoing challenges with commodity costs, such as cocoa, which remain above historical norms despite some price stabilization.
Q & A Highlights
Q: Can you discuss the impact of same-day delivery on your business and expectations for the holiday season? A: James McCann, CEO, explained that same-day delivery is significant for the floral side, comprising 30-40% of business, but historically minimal for non-floral items. They are leveraging floral infrastructure to expand same-day delivery for products like Cheryl's Cookies and Harry & David gift baskets, which is expected to grow over the next few years.