1-800-FLOWERS.COM, Inc. has recently released its 10-Q report, providing detailed insights into the company's financial performance and operations. The company operates through three segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. It offers a wide range of products, including fresh-cut flowers, floral and fruit arrangements, plants, gifts, personalized products, dipped berries, gourmet foods, and gift baskets, among others. The company operates under various brand names such as 1-800-Flowers.com, Harry & David, and Simply Chocolate.
In the 10-Q report, the company's "Management’s Discussion and Analysis of Financial Condition and Results of Operations" highlighted the impact of broader macro-economic conditions on consumer spending. The report indicated that the company's total consolidated revenues in the first quarter of Fiscal 2025 decreased by 10.0% to $242.1 million compared to the same period in the prior year. It also noted that the first quarter, which lacks major holiday occasions, primarily comprises everyday or just-because gift giving, contributing to the sales decline.
The report also detailed two significant acquisitions. On July 1, 2024, the company completed the acquisition of certain assets of Scharffen Berger, a chocolate manufacturing company, expanding its product offerings in the Gourmet Foods & Gift Baskets Segment. The acquisition was funded using cash on the company's balance sheet. Additionally, on April 3, 2024, the company completed the acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding its presence in the greeting card category across all brands.
Looking ahead, the company expects its revenue trend to improve as the fiscal year progresses. For Fiscal 2025, it anticipates total revenues to be in a range of flat to a decrease in the low single digits compared with the prior year. The company also expects its Adjusted EBITDA to be in a range of $85 million to $95 million, with Free Cash Flow projected to be in a range of $45 million to $55 million.
The report also provided definitions of non-GAAP financial measures used by the company, such as EBITDA, Adjusted EBITDA, adjusted net loss, and segment contribution margin, along with reconciliations for these measures. These non-GAAP financial measures are used to supplement the GAAP results and provide additional insights into the company's performance. Following these announcements, the company's shares moved -4.4%, and are now trading at a price of $7.95. For the full picture, make sure to review 1-800-FLOWERS.COM's 10-Q report.
