1-800-FLOWERS.COM (FLWS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was $1.83 billion, down 9.2% year-over-year, with a net loss of $6.1 million, including a $19.8 million non-cash impairment charge in Q2.

• Adjusted EBITDA for the year increased to $93.1 million, reflecting margin recovery and expense optimization despite lower sales.

• Gross profit margin improved 260 basis points to 40.1% for the year, driven by lower freight and commodity costs and logistics optimization.

• Strategic investments in relationship innovation, product portfolio expansion, and acquisitions are expected to drive improved revenue trends and long-term growth.

• Leadership transition announced: CFO Bill Shea to retire in December, with James Langrock set to succeed him.

Financial highlights

• Fiscal 2024 revenue declined 9.2% year-over-year to $1.83 billion; Q4 revenue down 9.5% to $360.9 million.

• Gross margin increased 260 basis points to 40.1% for the year; Q4 gross margin up 130 basis points to 38.4%.

• Adjusted EBITDA grew $1.9 million to $93.1 million for the year; free cash flow was $56.4 million.

• Net loss was $6.1 million ($0.09/share) for the year; adjusted net income was $11.6 million ($0.18/share).

• Cash and investments at year-end were $159.4 million; net debt reduced to $30.6 million.

Outlook and guidance

• Fiscal 2025 revenue expected to be flat to a low single-digit decline, with improvement as the year progresses.

• Adjusted EBITDA guidance: $85–$95 million; free cash flow expected at $45–$55 million.

• Gross margin improvement to continue but at a slower pace, with tens of basis points expected.

• Increased marketing spend and incentive compensation anticipated.