1800FLOWERSCOM Inc Reports Fiscal Year 2024 Financial Results and Issues Fiscal Year 2025 Guidance
Intellectia.AI2024-08-29
1-800-FLOWERS.COM, Inc. Reports Fiscal Year 2024 Financial Results and Issues Fiscal Year 2025 Guidance
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to personalize connections, today reported its financial results for the fourth quarter and fiscal year ended June 30, 2024.
Key Financial Metrics
| Metric | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $1.83 billion | $2.02 billion | -9.2% |
| Net Loss | $(6.1) million | $(44.7) million | -86.3% |
| Earnings Per Share (EPS) | $(0.09) | $(0.69) | -86.9% |
| Adjusted EBITDA | $93.1 million | $91.2 million | +2.1% |
| Gross Profit Margin | 40.1% | 37.5% | +260 bps |
Despite a 9.2% decrease in total revenue, 1-800-FLOWERS.COM significantly improved its gross profit margin by 260 basis points to 40.1%, driven by lower freight costs and commodity prices, alongside logistics optimization efforts. Operating expenses saw a notable decline of $55.7 million. Adjusted EBITDA grew marginally from $91.2 million to $93.1 million, demonstrating cost efficiencies.
Revenue Performance by Segment
| Segment | Q4 2024 Revenue ($M) | Q4 2023 Revenue ($M) | YoY Change | FY 2024 Revenue ($M) | FY 2023 Revenue ($M) | YoY Change |
|---|---|---|---|---|---|---|
| Gourmet Foods & Gift Baskets | $105.2 | $120.5 | -12.8% | $874.3 | $965.0 | -9.4% |
| Consumer Floral & Gifts | $231.6 | $248.1 | -6.7% | $849.8 | $921.2 | -7.7% |
| BloomNet | $24.4 | $30.0 | -18.7% | $107.8 | $133.3 | -19.1% |
The year-over-year decline in revenues across all segments reflects a challenging consumer environment. However, improvements in gross profit margins across segments, especially in BloomNet at 49.7%, suggest successful cost management and logistical improvements.
Operational Highlights and Developments
- Acquisitions : Acquired the Scharffen Berger Chocolate Maker, enhancing the Company’s offerings within its gourmet food and gift basket business.
- Product Innovations : Enhanced gifting platform with new categories, a wider range of price points, and increased same-day delivery options.
- Expense Optimization : Continued to operate efficiently through the Company's "Work Smarter" initiatives.
Comments from Leadership
Jim McCann, Chairman and CEO, highlighted the company's ability to grow adjusted EBITDA amid a dynamic consumer environment by leveraging expense optimization efforts and gross margin recovery. McCann emphasized ongoing focus on improving sales trends and enhancing customer experiences through strategic initiatives and marketing enhancements.
Forward Guidance
For Fiscal Year 2025, the company expects: - Total revenues to be flat or decrease by low-single digits compared to FY 2024. - Adjusted EBITDA to range between $85 million to $95 million. - Free Cash Flow to range between $45 million to $55 million.
Stock Price Movement
Following the earnings release, the company's stock saw a negligible change, maintaining a 0.0% change in the after-event analysis.
1-800-FLOWERS.COM continues to navigate a challenging market while pursuing strategies to enhance profitability and market position for future growth.
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