1-800-FLOWERS.COM, Inc. Announces Financial Performance for Q3 of Fiscal Year 2024

1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a prominent provider of gifts aimed at fostering deeper connections and relationships, has announced its financial results for the third quarter of Fiscal 2024, which ended on March 31, 2024.

Highlights of the Fiscal 2024 Third Quarter:

  • Total consolidated revenues saw a 9.1% decrease, amounting to $379.4 million compared to $417.6 million in the previous year’s same quarter. Although there was a decline in e-commerce revenue by 4.9%, this represents an improvement compared to the 6.6% decline in the preceding quarter.
  • Gross profit margin surged by 300 basis points, reaching 36.6% as compared to 33.6% in the previous year. This improvement was attributed to lower freight costs, favorable commodity prices, and the company’s logistics optimization endeavors.
  • As part of the ‘Work Smarter’ initiative, aiming at more efficient operations, and in response to prevailing business conditions, the company initiated a reduction in its full-time workforce, expecting annualized cost savings of over $10.0 million. During the third quarter, the company incurred $2.4 million in severance and related charges.
  • Operating expenses accounted for 43.9% of sales, including severance and related charges, compared to 53.9% in the previous year, which included a goodwill and intangible assets impairment charge. Excluding certain impacts, operating expenses were 42.4% of sales, a slight decrease from 38.8% in the prior year.
  • The net loss for the quarter stood at $16.9 million, or $0.26 per share, which includes severance and related charges of $2.4 million or $0.02 per share, and a tax benefit of $0.04 per share related to the fiscal second quarter trademark impairment charge. In the same period of the prior year, the net loss was $71.0 million, or $1.10 per share, including a non-cash goodwill and intangible asset impairment charge of $53.1 million.
  • Adjusted Net Loss was $18.0 million, or $0.28 per share, compared to $17.8 million, or $0.27 per share, in the prior year.
  • Adjusted EBITDA loss for the quarter was $5.7 million, compared to a loss of $5.5 million in the previous year.
  • 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek for the year 2024.
  • The acquisition of Card Isle, an e-commerce greeting card company, was completed after the end of the third quarter, expanding the company’s footprint in the greeting card category and enriching the gifting experience across its brands.

Jim McCann, Chairman, and CEO of 1-800-FLOWERS.COM, Inc. commented, “As we continue our journey towards normalization, our gross margin exhibited significant improvement during the third quarter. However, our top-line performance remains challenged by a dynamic consumer environment. In response, we intensified our ‘Work Smarter’ efforts and implemented workforce reductions in the fiscal third quarter. While these decisions are tough, they are made with a focus on allocating resources appropriately to drive growth within our business.”

McCann further added, “It’s essential to contextualize our current results. We are a stronger, more resilient company today than we were a few years ago. Reversions to the mean seldom happen linearly, and this doesn’t alter our long-term vision, where we anticipate our revenue to revert to its historical growth rate over time. Most importantly, we remain committed to executing our strategic initiatives to enhance and broaden our platform offerings, positioning us as the preferred destination for thoughtful and expressive gift-giving occasions.”

Segment Results:

  • Gourmet Foods and Gift Baskets: Revenues for the quarter were $131.0 million, down 11.4% from $147.9 million in the prior year period. Gross profit margin expanded by 530 basis points to 29.9%, benefiting from various optimization efforts.
  • Consumer Floral & Gifts: Revenues for the quarter were $221.2 million, down 5.1% from $233.0 million in the prior year period. Gross profit margin expanded by 140 basis points to 39.3%.
  • BloomNet: Revenues for the quarter were $27.3 million, down 26.1% from $37.0 million in the prior year period. Gross profit margin stood at 45.4%.

Company Guidance:

The company reaffirmed its Fiscal 2024 guidance, including:

  • Total revenues to decline in a range of 7% to 9% compared with the prior year.
  • Adjusted EBITDA to be in a range of $95 million to $100 million.
  • Free Cash Flow to be in a range of $60 million to $65 million.

Conference Call:

A conference call discussing the financial results and details mentioned above will be held on May 2, 2024, at 8:00 a.m. (ET). The call will be webcast from the Investors section of the Company’s website at 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 will be accessible until May 9, 2024.

Non-GAAP Financial Measures:

The company sometimes uses financial measures derived from consolidated financial information but not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. Reconciliations for forward-looking figures would require unreasonable efforts due to the uncertainty and variability of certain components. Therefore, such reconciliations have not been provided.

Source Link