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

Executive summary

• Q1 FY2025 revenue declined 10% year-over-year to $242.1 million, with net loss widening to $34.2 million and adjusted net loss at $32.9 million.

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

• Orders declined 6.5% year-over-year, with average order value down 1.5% due to expanded offerings and broader price points.

• Acquisitions of Scharffen Berger and Card Isle expanded product offerings in gourmet foods and greeting cards.

• Strategic focus remains on Relationship Innovation, expanding product range, and enhancing customer experience.

Financial highlights

• E-commerce revenue fell 8% year-over-year, with consolidated Q1 revenue down 10%.

• 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, a $38.5 million decline from the prior year, mainly due to inventory build for the holiday season.

• Cash and investments stood at $8.4 million, with $45 million drawn on the revolver and total debt at $232.5 million at quarter-end.

• Operating expenses declined by $4.3 million (excluding non-recurring charges).

Outlook and guidance

• Fiscal 2025 revenue expected to be flat to a low/mid-single digit decline year-over-year.

• Adjusted EBITDA guidance is $85–$95 million, with free cash flow projected at $45–$55 million.

• Q2 expected to benefit from $20 million increase in wholesale revenues and improved e-commerce trends as holiday season approaches.

• Management anticipates improved sales trends in the holiday period, citing historical resilience in gifting demand.