1-800-FLOWERS.COM, Inc. (FLWS) Q2 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy FLWS?
Source: SeekingAlpha
Consolidated Revenue Decreased by 9.5% year-over-year. This was driven by a strategic shift towards more efficient marketing spending and a greater-than-expected decline in direct traffic.
Consumer Floral and Gifts Segment Revenue Declined by 22.7% year-over-year. This was primarily due to the strategic shift in marketing and a decline in direct traffic.
Gourmet Foods and Gift Baskets Segment Revenue Declined by 3.8% year-over-year. This was influenced by the same strategic marketing shift and traffic decline.
BloomNet Segment Revenue Declined by 3.1% year-over-year. This was also due to the strategic marketing changes and traffic decline.
Gross Margin Decreased by 120 basis points to 42.1% from 43.3% in the prior year. This was primarily due to deleveraging on the sales decline, higher tariff, commodity, and shipping costs.
Operating Expenses Decreased by $23.4 million to $221.1 million year-over-year, primarily due to lower marketing and labor costs. Excluding certain items, operating expenses declined by $25.9 million to $213.2 million.
Adjusted EBITDA Decreased to $98.1 million from $116.3 million year-over-year. This was influenced by the decline in revenue and gross margin, despite cost reduction efforts.
Net Cash Position $42.3 million at quarter end. Borrowings under the revolver were fully repaid during the fiscal second quarter.
Cash Balance $193.3 million at quarter end.
Inventory $148.9 million at quarter end.
Annualized Run Rate Cost Savings Achieved approximately $15 million for fiscal 2026. This is part of an ongoing initiative to achieve $50 million in total cost savings across fiscal 2026 and 2027.
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Analyst Views on FLWS
Wall Street analysts forecast FLWS stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 4.820
Low
7.50
Averages
8.25
High
9.00
Current: 4.820
Low
7.50
Averages
8.25
High
9.00
About FLWS
1-800-Flowers.Com, Inc. is a provider of gifts designed to help customers to give, connect, and build relationships. Its segments include Consumer Floral & Gifts, Gourmet Foods & Gift Baskets and BloomNet. Its e-commerce business platform features a 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, Scharffen Berger and Simply Chocolate. The Celebrations Passport loyalty program provides members with free standard shipping and no service charge on eligible products across its portfolio of brands. It operates BloomNet, an international floral and gift industry service provider; Napco, a resource for floral gifts and seasonal decor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table, a lifestyle business, and Card Isle, an e-commerce greeting card service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
1-800-Flowers (FLWS) Q3 2026 Earnings Transcript
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1-800-FLOWERS.COM Q3 FY2026 Earnings Call Insights
- Customer Experience Improvement: 1-800-FLOWERS.COM reported significant enhancements in customer satisfaction during Q3, with post-purchase satisfaction increasing and a decline in call center inquiries per order, indicating positive progress in customer experience improvements that may enhance customer loyalty.
- Significant Cost Savings: The company achieved its $50 million cost savings target in less than a year, with a core headcount reduction of approximately 20%, although short-term consultant costs and incentive compensation partially offset these savings, the overall cost control strategy remains effective.
- Decline in Financial Performance: Consolidated revenue for the quarter decreased by 11.6%, with the Consumer Floral and Gifts segment declining by 18.7%; despite improvements in gross margin, overall profitability was pressured by commodity costs and tariffs, resulting in an adjusted EBITDA loss of $31.2 million.
- Cautious Future Outlook: Management expects revenue to decline by approximately 10% to 12% for FY2026, with adjusted EBITDA projected to be breakeven within a range of ±$2 million, emphasizing ongoing impacts from changes in search engine results and pressure on direct traffic, reflecting uncertainty in the future market environment.
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- Significant Revenue Decline: Total consolidated revenues fell to $293 million, down 11.6% year-over-year, primarily reflecting a strategic shift that has reduced marketing effectiveness, highlighting pressures in a competitive market.
- Segment Performance: Consumer Floral & Gifts revenues dropped 18.7%, while Gourmet Foods & Gift Baskets remained flat, indicating significant impacts from prior inefficient marketing spend in the floral segment, necessitating a reevaluation of marketing strategies.
- Pessimistic Outlook: For Fiscal Year 2026, the company anticipates a revenue decline of approximately 10% to 12% and expects adjusted EBITDA to be near breakeven, reflecting ongoing challenges in cost management and profitability recovery that may affect long-term growth potential.
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- Historical Performance: Over the past two years, the company has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, reflecting significant volatility in performance that may impact investor confidence.
- Market Opportunity: The company has inked a national flower delivery deal with Instacart ahead of Valentine's Day, which could boost sales and enhance brand visibility, although overall financial performance remains a concern.
- Analyst Ratings: Seeking Alpha's Quant Rating on 1-800 FLOWERS.COM indicates a cautious market outlook, prompting investors to closely monitor the upcoming earnings report to assess the effectiveness of the company's strategic adjustments.
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- FTC Allegations: The Federal Trade Commission and 11 states have accused Walmart of misleading workers in its Spark Delivery network about base pay, incentive pay, and tips, potentially exposing the company to stricter regulatory scrutiny.
- Customer Misleading: Walmart is accused of falsely claiming that 100% of tips would go directly to drivers, which, if unaddressed, could damage consumer trust and negatively impact the brand's reputation.
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- Increased Average Expenditure: The survey indicates that the average consumer will spend approximately $200 on gifts, up from last year's average of $188.81, reflecting a growing willingness to invest in gifts.
- Diverse Gift Choices: Popular gifts include candy, flowers, greeting cards, dining experiences, and jewelry, with jewelry projected to account for $7 billion in spending, highlighting consumers' preference for luxury items.
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1-800-Flowers (FLWS) Q3 2026 Earnings Transcript
See More
1-800-FLOWERS.COM Q3 FY2026 Earnings Call Insights
- Customer Experience Improvement: 1-800-FLOWERS.COM reported significant enhancements in customer satisfaction during Q3, with post-purchase satisfaction increasing and a decline in call center inquiries per order, indicating positive progress in customer experience improvements that may enhance customer loyalty.
- Significant Cost Savings: The company achieved its $50 million cost savings target in less than a year, with a core headcount reduction of approximately 20%, although short-term consultant costs and incentive compensation partially offset these savings, the overall cost control strategy remains effective.
- Decline in Financial Performance: Consolidated revenue for the quarter decreased by 11.6%, with the Consumer Floral and Gifts segment declining by 18.7%; despite improvements in gross margin, overall profitability was pressured by commodity costs and tariffs, resulting in an adjusted EBITDA loss of $31.2 million.
- Cautious Future Outlook: Management expects revenue to decline by approximately 10% to 12% for FY2026, with adjusted EBITDA projected to be breakeven within a range of ±$2 million, emphasizing ongoing impacts from changes in search engine results and pressure on direct traffic, reflecting uncertainty in the future market environment.
See More
1-800 FLOWERS.COM Q3 Earnings Miss Expectations
- Disappointing Earnings: 1-800 FLOWERS.COM reported a Q3 non-GAAP EPS of -$0.77, missing expectations by $0.09, indicating challenges in profitability that could undermine investor confidence.
- Significant Revenue Decline: Total consolidated revenues fell to $293 million, down 11.6% year-over-year, primarily reflecting a strategic shift that has reduced marketing effectiveness, highlighting pressures in a competitive market.
- Segment Performance: Consumer Floral & Gifts revenues dropped 18.7%, while Gourmet Foods & Gift Baskets remained flat, indicating significant impacts from prior inefficient marketing spend in the floral segment, necessitating a reevaluation of marketing strategies.
- Pessimistic Outlook: For Fiscal Year 2026, the company anticipates a revenue decline of approximately 10% to 12% and expects adjusted EBITDA to be near breakeven, reflecting ongoing challenges in cost management and profitability recovery that may affect long-term growth potential.
See More
1-800 FLOWERS.COM to Announce Q3 Earnings on May 7
- Earnings Announcement: 1-800 FLOWERS.COM is set to release its Q3 earnings on May 7 before market open, with consensus EPS estimate at -$0.68 and revenue estimate at $293.97 million, indicating challenges in profitability.
- Historical Performance: Over the past two years, the company has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, reflecting significant volatility in performance that may impact investor confidence.
- Market Opportunity: The company has inked a national flower delivery deal with Instacart ahead of Valentine's Day, which could boost sales and enhance brand visibility, although overall financial performance remains a concern.
- Analyst Ratings: Seeking Alpha's Quant Rating on 1-800 FLOWERS.COM indicates a cautious market outlook, prompting investors to closely monitor the upcoming earnings report to assess the effectiveness of the company's strategic adjustments.
See More
Walmart to Pay $100 Million to Settle Driver Compensation Lawsuit
- Settlement Amount: Walmart will pay $100 million to settle a lawsuit alleging misleading compensation practices for delivery drivers, indicating significant financial implications for the company regarding employee pay transparency.
- FTC Allegations: The Federal Trade Commission and 11 states have accused Walmart of misleading workers in its Spark Delivery network about base pay, incentive pay, and tips, potentially exposing the company to stricter regulatory scrutiny.
- Customer Misleading: Walmart is accused of falsely claiming that 100% of tips would go directly to drivers, which, if unaddressed, could damage consumer trust and negatively impact the brand's reputation.
- Stock Performance: Despite facing FTC allegations, Walmart's shares have risen 10.34% year-to-date, although they fell 1.06% in the latest trading session, reflecting market caution regarding the company's future performance.
See More
Record $29.1 Billion Expected Spending for Valentine's Day
- Record Spending: According to the National Retail Federation's latest survey, Americans are expected to spend a record $29.1 billion this Valentine's Day, surpassing the previous record of $27.5 billion set in 2025 by nearly 6%.
- Increased Average Expenditure: The survey indicates that the average consumer will spend approximately $200 on gifts, up from last year's average of $188.81, reflecting a growing willingness to invest in gifts.
- Diverse Gift Choices: Popular gifts include candy, flowers, greeting cards, dining experiences, and jewelry, with jewelry projected to account for $7 billion in spending, highlighting consumers' preference for luxury items.
- Shift in Shopping Channels: Online shopping remains the primary channel, followed by department stores, discount stores, and specialty shops, indicating a gradual shift towards digital shopping as consumers adapt to new spending trends.
See More
