The chart below shows how FLWS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FLWS sees a +5.99% change in stock price 10 days leading up to the earnings, and a -0.16% change 10 days following the report. On the earnings day itself, the stock moves by -1.87%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Holiday Season Delivery Success: Successfully delivered over 7,000,000 orders during the holiday season, demonstrating strong operational capacity despite challenges.
Cost Management Success: Adjusted operating expenses declined by $2,900,000 to $239,000,000 compared to the prior year, reflecting effective cost management initiatives.
Stable Gross Margin Performance: Gross margin remained stable at 43.3%, consistent with the prior year, indicating resilience in profitability amidst a promotional environment.
Strong Cash Position: Cash balance at the end of Q2 was $247,000,000, providing a solid liquidity position to support future growth initiatives.
Revenue Diversification Success: The wholesale gift baskets business saw an increase, offsetting some declines in e-commerce, highlighting diversification in revenue streams.
Negative
E-commerce Revenue Decline: Q2 revenue declined 5.7%, with e-commerce revenue down 8.3%, indicating weaker consumer demand and corporate gifting orders.
Order Management System Impact: The implementation of a new order management system caused an estimated $20 million revenue loss, significantly impacting overall performance during the holiday season.
Order Value Decline: Average Order Value (AOV) decreased by 1.2%, reflecting reduced spending from corporate partners and fewer items per order.
Adjusted EBITDA Decline: Adjusted EBITDA fell to $116.3 million from $130.1 million year-over-year, with an estimated $4.8 million impact from OMS-related costs.
Corporate Gifting Revenue Decline: Corporate gifting revenue dropped 17.5% year-over-year, from $84 million to $70 million, highlighting a significant decline in this segment.
Earnings call transcript: 1-800-FLOWERS.com Q2 2025 misses EPS, stock drops
FLWS.O
-6.7%