Generates Revenues of $242.1 million and a Net
Loss of $34.2 million
Gross Profit Margin Increases 20 basis points
to 38.1%
Reports Adjusted EBITDA(1) Loss of $27.9
million
(1) Refer to “Definitions of Non-GAAP Financial
Measures” and the tables attached at the end of this press release
for reconciliation of non-GAAP results to applicable GAAP
results.)
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of
gifts designed to help inspire customers to give more, connect
more, and build more and better relationships, today reported
results for its Fiscal 2025 first quarter ended September 29,
2024.
“Our first quarter performance generally came in-line with our
expectations, as we began to see a slight improvement in our
e-commerce revenue trends during the quarter, our gross profit
margin continued to grow, and we reduced expenses as a result of
our Work Smarter initiatives to operate more efficiently,” said Jim
McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM,
Inc. “We expect the improvement in our e-commerce revenue trends to
accelerate as we move closer to the holiday selling season, and our
revenues will further benefit from the growth of wholesale orders
this year. Through the Relationship Innovation initiatives that we
implemented over the last two years, we have expanded our offerings
and broadened our price points, providing gift givers with more
choices at prices that span from budget-friendly to premium. We
look forward to helping our customers connect and express their
sentiments with the important people in their lives.”
Fiscal 2025 First Quarter
Highlights
- Total consolidated revenues decreased 10.0% to $242.1 million,
as compared with the prior year period.
- E-commerce revenues decreased 8.0% over the prior year period,
comprised of a 6.5% decline in orders and a 1.5% decline in Average
Order Value (AOV).
- Gross profit margin increased 20 basis points to 38.1%, as
compared with the prior year period.
- Operating expenses declined $0.2 million to $139.3 million, as
compared with the prior year period. Excluding the impact of
non-recurring charges in the current period associated with new
systems implementation costs, as well as the impact of the
Company’s non-qualified deferred compensation plan in both periods,
operating expenses declined by $4.2 million to $135.8 million, as
compared with the prior year period.
- Net loss for the quarter was $34.2 million, or ($0.53) per
share, as compared to a net loss of $31.2 million, or ($0.48) per
share in the prior year period.
- Adjusted Net Loss1 was $32.9 million, or ($0.51) per share,
compared with an Adjusted Net Loss1 of $31.2 million, or ($0.48)
per share, in the prior year period.
- Adjusted EBITDA1 loss for the quarter was $27.9 million, as
compared with an Adjusted EBITDA1 loss of $22.5 million in the
prior year period.
- 1-800-FLOWERS.COM, Inc. was named one of Newsweek's Most
Admired Workplaces for 2025.
Segment Results
The Company provides Fiscal 2025 first quarter financial results
for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts,
and BloomNet® segments in the tables attached to this release and
as follows:
- Gourmet Foods and Gift Baskets: Revenues for the quarter
declined 14.4% to $84.0 million as compared with the prior year
period. This decline reflects the timing of approximately $3.0
million of wholesale orders that shifted from the first quarter
into the second quarter. Gross profit margin increased 50 basis
points to 32.0%, benefiting from the Company’s inventory
optimization efforts and a decline in certain commodity costs.
Excluding the impact of the systems implementation costs, adjusted
segment contribution margin1 loss was $11.3 million, compared with
a loss of $11.0 million in the prior year period.
- Consumer Floral & Gifts: Revenues for the quarter
declined 4.9% to $135.2 million as compared with the prior year
period. Gross profit margin increased 30 basis points to 39.9%.
Segment contribution margin1 was $4.9 million, compared with $8.8
million in the prior year period.
- BloomNet: Revenues for the quarter declined 20.1% to
$23.1 million as compared with the prior year period. Revenue and
gross margin were impacted by the lower volume of lower margin
orders processed by BloomNet. Gross profit margin decreased 20
basis points to 50.0% due to deleveraging on the lower sales
volume. Segment contribution margin1 was $6.8 million, compared
with $9.4 million in the prior year period.
Company Guidance
For Fiscal 2025, the Company continues to expect its revenue
trend to improve as the fiscal year progresses benefiting from the
Company’s Relationship Innovation initiatives that have expanded
the Company’s product offerings, broadened price points, and
enhanced the user experience, combined with increased marketing
spend. The Adjusted EBITDA range reflects the acknowledgement that
the consumer environment remains uncertain.
As a result, for Fiscal 2025 the Company continues to
expect:
- total revenues on a percentage basis to be in a range of flat
to a decrease in the low-single digits, as compared with the prior
year;
- Adjusted EBITDA1 to be in a range of $85 million to $95
million; and
- Free Cash Flow1 to be in a range of $45 million to $55
million.
Conference Call
The Company will conduct a conference call to discuss the above
details and attached financial results today, October 31, 2024, at
8:00 a.m. (ET). The conference call will be webcast from the
Investors section of the Company’s website at
www.1800flowersinc.com. 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 can be
accessed beginning at 2:00 p.m. (ET) today through November 7,
2024, at: (US) 1-877-344-7529; (Canada) 855-669-9658;
(International) 1-412-317-0088; enter conference ID #: 1727189.
Definitions of non-GAAP Financial
Measures:
We sometimes use financial measures derived from consolidated
financial information, but not presented in our financial
statements prepared 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. Non-GAAP financial measures referred to
in this document are either labeled as “non-GAAP” or designated as
such with a “1”. See below for definitions and the reasons why we
use these non-GAAP financial measures. Where applicable, see the
Selected Financial Information below for reconciliations of these
non-GAAP measures to their most directly comparable GAAP financial
measures. Reconciliations for forward-looking figures would require
unreasonable efforts at this time because of the uncertainty and
variability of the nature and amount of certain components of
various necessary GAAP components, including, for example, those
related to compensation, tax items, amortization or others that may
arise during the year, and the Company’s management believes such
reconciliations would imply a degree of precision that would be
confusing or misleading to investors. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information. The lack of such reconciling information
should be considered when assessing the impact of such
disclosures.
EBITDA and Adjusted EBITDA:
We define EBITDA as net income (loss) before interest, taxes,
depreciation, and amortization. Adjusted EBITDA is defined as
EBITDA adjusted for the impact of stock-based compensation,
Non-Qualified Plan Investment appreciation/depreciation, and for
certain items affecting period-to-period comparability. See
Selected Financial Information for details on how EBITDA and
Adjusted EBITDA were calculated for each period presented. The
Company presents EBITDA and Adjusted EBITDA because it considers
such information meaningful supplemental measures of its
performance and believes such information is frequently used by the
investment community in the evaluation of similarly situated
companies. The Company uses EBITDA and Adjusted EBITDA as factors
to determine the total amount of incentive compensation available
to be awarded to executive officers and other employees. The
Company's credit agreement uses EBITDA and Adjusted EBITDA to
determine its interest rate and to measure compliance with certain
covenants. EBITDA and Adjusted EBITDA are also used by the Company
to evaluate and price potential acquisition candidates. EBITDA and
Adjusted EBITDA have limitations as analytical tools and should not
be considered in isolation or as a substitute for analysis of the
Company's results as reported under GAAP. Some of the limitations
are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or
cash requirements for, the Company's working capital needs; (b)
EBITDA and Adjusted EBITDA do not reflect the significant interest
expense, or the cash requirements necessary to service interest or
principal payments, on the Company's debts; and (c) although
depreciation and amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future and EBITDA does not reflect any cash requirements for such
capital expenditures. EBITDA and Adjusted EBITDA should only be
used on a supplemental basis combined with GAAP results when
evaluating the Company's performance.
Segment Contribution Margin and Adjusted Segment Contribution
Margin
We define Segment Contribution Margin as earnings before
interest, taxes, depreciation, and amortization, before the
allocation of corporate overhead expenses. Adjusted Segment
Contribution Margin is defined as Segment Contribution Margin
adjusted for certain items affecting period-to-period
comparability. See Selected Financial Information for details on
how Segment Contribution Margin and Adjusted Segment Contribution
Margin were calculated for each period presented. When viewed
together with our GAAP results, we believe Segment Contribution
Margin and Adjusted Segment Contribution Margin provide management
and users of the financial statements meaningful information about
the performance of our business segments. Segment Contribution
Margin and Adjusted Segment Contribution Margin are used in
addition to and in conjunction with results presented in accordance
with GAAP and should not be relied upon to the exclusion of GAAP
financial measures. The material limitation associated with the use
of Segment Contribution Margin and Adjusted Segment Contribution
Margin is that they are an incomplete measure of profitability as
they do not include all operating expenses or non-operating income
and expenses. Management compensates for this limitation when using
these measures by looking at other GAAP measures, such as Operating
Income and Net Income.
Adjusted Net Income (Loss) and Adjusted or Comparable Net
Income (Loss) Per Common Share:
We define Adjusted Net Income (Loss) and Adjusted or Comparable
Net Income (Loss) Per Common Share as Net Income (Loss) and Net
Income (Loss) Per Common Share adjusted for certain items affecting
period-to-period comparability. See Selected Financial Information
below for details on how Adjusted Net Income (Loss) Per Common
Share and Adjusted or Comparable Net Income (Loss) Per Common Share
were calculated for each period presented. We believe that Adjusted
Net Income (Loss) and Adjusted or Comparable Net Income (Loss) Per
Common Share are meaningful measures because they increase the
comparability of period-to-period results. Since these are not
measures of performance calculated in accordance with GAAP, they
should not be considered in isolation of, or as a substitute for,
GAAP Net Income (Loss) and Net Income (Loss) Per Common Share, as
indicators of operating performance and they may not be comparable
to similarly titled measures employed by other companies.
Free Cash Flow:
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures. The Company considers Free
Cash Flow to be a liquidity measure that provides useful
information to management and investors about the amount of cash
generated by the business after the purchases of fixed assets,
which can then be used to, among other things, invest in the
Company’s business, make strategic acquisitions, strengthen the
balance sheet, and repurchase stock or retire debt. Free Cash Flow
is a liquidity measure that is frequently used by the investment
community in the evaluation of similarly situated companies. Since
Free Cash Flow is not a measure of performance calculated in
accordance with GAAP, it should not be considered in isolation or
as a substitute for analysis of the Company's results as reported
under GAAP. A limitation of the utility of Free Cash Flow as a
measure of financial performance is that it does not represent the
total increase or decrease in the Company's cash balance for the
period.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed
to help inspire customers to give more, connect more, and build
more and better relationships. The Company’s e-commerce business
platform features an all-star family of brands, including:
1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry
& David®, PersonalizationMall.com®, Shari’s Berries®,
FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn
Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and
Scharffen Berger®. Through the Celebrations Passport® loyalty
program, which provides members with free standard shipping and no
service charge on eligible products across our portfolio of brands,
1-800-FLOWERS.COM, Inc. strives to deepen relationships with
customers. The Company also operates BloomNet®, an international
floral and gift industry service provider offering a broad-range of
products and services designed to help members grow their
businesses profitably; Napco℠, a resource for floral gifts and
seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift
baskets and towers; Alice’s Table®, a lifestyle business offering
fully digital livestreaming and on demand floral, culinary and
other experiences to guests across the country; and Card Isle®, an
e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was
recognized among America’s Most Trustworthy Companies by Newsweek.
1-800-FLOWERS.COM, Inc. was also recognized as one of America’s
Most Admired Workplaces for 2025 by Newsweek and was named to the
Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are
traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For
more information, visit 1800flowersinc.com.
FLWS–COMP FLWS-FN
Special Note Regarding Forward Looking
Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements represent the Company’s
current expectations or beliefs concerning future events and can
generally be identified using statements that include words such as
“estimate,” “expects,” “project,” “believe,” “anticipate,”
“intend,” “plan,” “foresee,” “forecast,” “likely,” “should,”
“will,” “target” or similar words or phrases. These forward-looking
statements are subject to risks, uncertainties, and other factors,
many of which are outside of the Company’s control, which could
cause actual results to differ materially from the results
expressed or implied in the forward-looking statements, including,
but not limited to, statements regarding the Company’s ability to
achieve its guidance for the full Fiscal year; the Company’s
ability to leverage its operating platform and reduce its operating
expense ratio; its ability to successfully integrate acquired
businesses and assets; its ability to successfully execute its
strategic initiatives; its ability to cost effectively acquire and
retain customers; the outcome of contingencies, including legal
proceedings in the normal course of business; its ability to
compete against existing and new competitors; its ability to manage
expenses associated with sales and marketing and necessary general
and administrative and technology investments; its ability to
reduce promotional activities and achieve more efficient marketing
programs; and general consumer sentiment and industry and economic
conditions that may affect levels of discretionary customer
purchases of the Company’s products. The Company undertakes no
obligation to publicly update any of the forward-looking
statements, whether because of new information, future events or
otherwise, made in this release or in any of its SEC filings.
Consequently, you should not consider any such list to be a
complete set of all potential risks and uncertainties. For a more
detailed description of these and other risk factors, refer to the
Company’s SEC filings, including the Company’s Annual Reports on
Form 10-K and its Quarterly Reports on Form 10-Q.
Note: The following tables are an integral
part of this press release without which the information presented
in this press release should be considered incomplete.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets
(in thousands)
September 29, 2024
June 30, 2024
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
8,407
$
159,437
Trade receivables, net
41,024
18,024
Inventories
275,323
176,591
Prepaid and other
60,960
31,680
Total current assets
385,714
385,732
Property, plant and equipment, net
225,239
223,789
Operating lease right-of-use assets
112,926
113,926
Goodwill
156,648
156,537
Other intangibles, net
115,531
116,216
Other assets
38,566
36,448
Total assets
$
1,034,624
$
1,032,648
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
63,732
$
80,005
Accrued expenses
128,926
121,303
Current maturities of long-term debt
57,500
10,000
Current portion of long-term operating
lease liabilities
16,836
16,511
Total current liabilities
266,994
227,819
Long-term debt, net
172,293
177,113
Long-term operating lease liabilities
104,398
105,866
Deferred tax liabilities, net
18,794
19,402
Other liabilities
38,728
36,106
Total liabilities
601,207
566,306
Total stockholders’ equity
433,417
466,342
Total liabilities and stockholders’
equity
$
1,034,624
$
1,032,648
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Operations
(in thousands, except for per
share data)
(unaudited)
Three Months Ended
September 29, 2024
October 1, 2023
Net revenues:
E-Commerce
$
193,174
$
209,911
Other
48,916
59,139
Total net revenues
242,090
269,050
Cost of revenues
149,771
167,122
Gross profit
92,319
101,928
Operating expenses:
Marketing and sales
82,097
82,518
Technology and development
15,639
15,304
General and administrative
28,526
28,489
Depreciation and amortization
13,038
13,194
Total operating expenses
139,300
139,505
Operating loss
(46,981
)
(37,577
)
Interest expense, net
3,360
3,482
Other (income)/expense, net
(1,767
)
474
Loss before income taxes
(48,574
)
(41,533
)
Income tax benefit
(14,384
)
(10,291
)
Net loss
$
(34,190
)
$
(31,242
)
Basic and diluted net loss per common
share
$
(0.53
)
$
(0.48
)
Basic and diluted weighted average shares
used in the calculation of net loss per common share
64,198
64,785
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Three Months Ended
September 29, 2024
October 1, 2023
Operating activities:
Net loss
$
(34,190
)
$
(31,242
)
Adjustments to reconcile net loss to net
cash provided by operating activities, net of acquisitions:
Depreciation and amortization
13,038
13,194
Amortization of deferred financing
costs
180
180
Deferred income taxes
(607
)
(579
)
Bad debt expense
84
586
Stock-based compensation
2,479
2,364
Other non-cash items
255
270
Changes in operating items:
Trade receivables
(23,025
)
(24,407
)
Inventories
(97,439
)
(89,287
)
Prepaid and other
(29,237
)
(14,764
)
Accounts payable and accrued expenses
(8,806
)
(42
)
Other assets and liabilities
27
(157
)
Net cash used in operating activities
(177,241
)
(143,884
)
Investing activities:
Acquisitions, net of cash acquired
(3,000
)
-
Capital expenditures
(12,075
)
(6,974
)
Net cash used in investing activities
(15,075
)
(6,974
)
Financing activities:
Acquisition of treasury stock
(1,255
)
(74
)
Proceeds from exercise of employee stock
options
41
-
Proceeds from bank borrowings
45,000
35,000
Repayment of bank borrowings
(2,500
)
(2,500
)
Net cash provided by financing
activities
41,286
32,426
Net change in cash and cash
equivalents
(151,030
)
(118,432
)
Cash and cash equivalents:
Beginning of period
159,437
126,807
End of period
$
8,407
$
8,375
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial Information
– Category Information
(dollars in thousands)
(unaudited)
Three Months Ended
September 29, 2024
System Implementation
Costs
As Adjusted (non-GAAP)
September 29, 2024
October 1, 2023
% Change
Net revenues:
Consumer Floral & Gifts
$
135,180
$
135,180
$
142,194
-4.9
%
BloomNet
23,075
23,075
28,870
-20.1
%
Gourmet Foods & Gift Baskets
84,003
84,003
98,109
-14.4
%
Corporate
89
89
270
-67.0
%
Intercompany eliminations
(257
)
(257
)
(393
)
34.6
%
Total net revenues
$
242,090
$
-
$
242,090
$
269,050
-10.0
%
Gross profit:
Consumer Floral & Gifts
$
53,929
$
53,929
$
56,322
-4.2
%
39.9
%
39.9
%
39.6
%
BloomNet
11,528
11,528
14,498
-20.5
%
50.0
%
50.0
%
50.2
%
Gourmet Foods & Gift Baskets
26,844
26,844
30,907
-13.1
%
32.0
%
32.0
%
31.5
%
Corporate
18
18
201
-91.0
%
20.2
%
20.2
%
74.4
%
Total gross profit
$
92,319
$
-
$
92,319
$
101,928
-9.4
%
38.1
%
-
38.1
%
37.9
%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP)
(a):
Consumer Floral & Gifts
$
4,944
$
4,944
$
8,826
-44.0
%
BloomNet
6,841
6,841
9,387
-27.1
%
Gourmet Foods & Gift Baskets
(12,253
)
913
(11,340
)
(11,028
)
-2.8
%
Segment Contribution Margin Subtotal
(468
)
913
445
7,185
-93.8
%
Corporate (b)
(33,475
)
867
(32,608
)
(31,568
)
-3.3
%
EBITDA (non-GAAP)
(33,943
)
1,780
(32,163
)
(24,383
)
-31.9
%
Add: Stock-based compensation
2,479
2.479
2,364
4.9
%
Add: Compensation charge related to NQDC
Plan Investment Appreciation (Depreciation)
1,738
1,738
(504
)
444.8
%
Adjusted EBITDA (non-GAAP)
$
(29,726
)
$
1,780
$
(27,946
)
$
(22,523
)
-24.1
%
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands, except for per
share data)
(unaudited)
Reconciliation of net loss to adjusted
net loss (non-GAAP):
Three Months Ended
September 29, 2024
October 1, 2023
Net loss
$
(34,190
)
$
(31,242
)
Adjustments to reconcile net loss to
adjusted net loss (non-GAAP)
Add: System Implementation Costs
1,780
-
Deduct: Income tax effect on
adjustments
(527
)
-
Adjusted net loss (non-GAAP)
$
(32,937
)
$
(31,242
)
Basic and diluted net loss per common
share
$
(0.53
)
$
(0.48
)
Basic and diluted adjusted net loss per
common share (non-GAAP)
$
(0.51
)
$
(0.48
)
Weighted average shares used in the
calculation of basic and diluted net loss and adjusted net loss per
common share
64,198
64,785
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net loss to adjusted
EBITDA (non-GAAP):
Three Months Ended
September 29, 2024
October 1, 2023
Net loss
$
(34,190
)
$
(31,242
)
Add: Interest expense and other, net
1,593
3,956
Add: Depreciation and amortization
13,038
13,194
Add: Income tax benefit
(14,384
)
(10,291
)
EBITDA
(33,943
)
(24,383
)
Add: Stock-based compensation
2,479
2,364
Add: Compensation charge related to NQDC
plan investment appreciation (depreciation)
1,738
(504
)
Add: System Implementation Costs
1,780
-
Adjusted EBITDA
$
(27,946
)
$
(22,523
)
(a) Segment performance is measured based
on segment contribution margin or segment Adjusted EBITDA,
reflecting only the direct controllable revenue and operating
expenses of the segments, both of which are non-GAAP measurements.
As such, management’s measure of profitability for these segments
does not include the effect of corporate overhead, described above,
depreciation and amortization, other income (net), and other items
that we do not consider indicative of our core operating
performance.
(b) Corporate expenses consist of the
Company’s enterprise shared service cost centers, and include,
among other items, Information Technology, Human Resources,
Accounting and Finance, Legal, Executive and Customer Service
Center functions, Stock-Based Compensation, as well as changes in
the fair value of the Company's NQDC plan. In order to leverage the
Company’s infrastructure, these functions are operated under a
centralized management platform, providing support services
throughout the organization. The costs of these functions, other
than those of the Customer Service Center, which are allocated
directly to the above categories based upon usage, are included
within corporate expenses as they are not directly allocable to a
specific segment.
1-800-FLOWERS.COM, Inc. and
Subsidiaries
Selected Financial
Information
(in thousands)
(unaudited)
Reconciliation of net cash used in
operating activities to free cash flow (non-GAAP):
Three Months Ended
September 29, 2024
October 1, 2023
Net cash used in operating activities
$
(177,241
)
$
(143,884
)
Capital expenditures
(12,075
)
(6,974
)
Free cash flow
$
(189,316
)
$
(150,858
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241031507666/en/
Investor Contact: Andy Milevoj
amilevoj@1800flowers.com Media
Contact: Cherie Gallarello cgallarello@1800flowers.com
1 800 Flowers Com (NASDAQ:FLWS)
Graphique Historique de l'Action
De Jan 2025 à Fév 2025
1 800 Flowers Com (NASDAQ:FLWS)
Graphique Historique de l'Action
De Fév 2024 à Fév 2025
