1-800-FLOWERS.COM, Inc.

What they do

The company sells flowers, gifts, gourmet foods, and personalized products through a portfolio of brands including 1-800-Flowers.com, Harry & David, Cheryl's Cookies, PersonalizationMall.com, and Shari's Berries. It also operates BloomNet, a floral industry service provider, and Napco, a floral and décor resource. Operations are split into three segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet.

Revenue drivers

• Consumer Floral & Gifts — Includes flagship 1-800-Flowers.com, Personalization Mall, Things Remembered, FruitBouquets.com, and Alice's Table; fiscal Q3 2026 revenue $159.4 million, down 18.7% year-over-year.
• Gourmet Foods & Gift Baskets — Includes Harry & David, Cheryl's Cookies, The Popcorn Factory, and Scharffen Berger; fiscal Q3 2026 revenue $106.9 million, essentially flat year-over-year, with Easter timing benefit.
• BloomNet — Provides floral industry services, including BloomNet, Napco, and Card Isle; typically smaller revenue contributor, serving independent florists and members.

Recent performance

In fiscal Q3 2026 (ended March 29, 2026), total revenue fell 11.6% to $293.0 million. The company reported a net loss of $100.1 million (loss per share $1.56), including a $45.2 million non-cash goodwill and intangible impairment. Gross margin improved 150 basis points to 33.2%. Adjusted EBITDA loss was $31.2 million, an improvement from a $34.9 million loss in the prior year. For fiscal 2025, revenue was $1.69 billion with a net loss of $200.0 million.

Strategy

Management calls fiscal 2026 a 'pivotal period of foundation setting' focused on customer-centricity and data-driven decisions. Priorities include driving cost savings (two-year target achieved ahead of plan), broadening beyond e-commerce into new channels, and strengthening talent accountability. The company is reinvesting a portion of savings into targeted marketing to support stabilization and growth. The shift is toward improving marketing effectiveness and profitability rather than revenue growth at all costs.

Risks

• Weak consumer discretionary spending — Continued pressure on discretionary income has been reducing demand for everyday gifting occasions, as noted in fiscal 2025 results.
• Goodwill and intangible impairment risk — The company recorded a $138.2 million goodwill and intangible impairment in fiscal 2025 and another $45.2 million in fiscal Q3 2026, indicating potential for further write-downs.
• Marketing and traffic challenges — Changes in search engine results pages and pressure on direct traffic have hurt Consumer Floral & Gifts revenue, with prior-year inefficient marketing spend still impacting results.
• Tariffs and commodity costs — Higher tariffs and commodity costs are pressuring margins, particularly in the Gourmet Foods & Gift Baskets segment, though partially offset by cost initiatives.

Outlook

Management is confident that strategic initiatives, including cost savings and marketing reinvestment, are setting the stage for sustainable revenue and profit growth. They point to improved customer experience metrics for Valentine's Day and tangible evidence of performance improvement. No specific forward-looking financial guidance was provided in the available excerpts.