Company Reports Q2 Revenue of $702.2M, Exceeding Expectations
Reports Q2 revenue $702.2M, consensus $700.58M. "Our teams remained focused on executing against our key strategic priorities throughout the holiday period, which continues to reflect the early stages of our broader transformation," said CEO Adolfo Villagomez. "While the topline impact of our initiatives will take time as we address structural challenges within the business, we made solid progress in the second quarter on our cost-optimization and organizational-streamlining efforts, including meaningful steps toward transforming our structure into a more functional and efficient organization. These actions are strengthening our operating foundation and better positioning the Company to achieve sustainable, profitable growth. I am proud of how our teams supported our customers and advanced the operational improvements and strategic priorities that are essential to our long-term success."
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- Earnings Surprise: 1-800-Flowers.com reported an 11% increase in adjusted net income to $76.7 million, or $1.20 per share, exceeding Wall Street's estimate of $0.86, indicating a significant enhancement in profitability.
- Revenue Decline: Despite a 9.5% year-over-year revenue drop to $702.2 million, management emphasized prioritizing profitability through reduced marketing spend, laying the groundwork for a sustainable demand generation model.
- Cost Optimization: The shift to a function-based operating model allowed the company to cut operating expenses by $23.4 million to $221.1 million, demonstrating substantial progress in cost control and organizational streamlining amid structural challenges.
- Positive Market Reaction: As of 1:35 p.m. EST, shares of 1-800-Flowers.com surged 18.71% to $4.80, reflecting investor optimism regarding the company's potential for future profit growth.
- Profit Growth: 1-800-Flowers.com reported a net profit of $70.55 million for Q2, translating to $1.10 per share, which marks a significant increase from last year's $64.35 million and $1.00 per share, indicating improved profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $76.66 million or $1.20 per share, demonstrating strong core business profitability despite the overall revenue decline.
- Revenue Decline: The company's revenue fell 9.5% to $702.18 million from $775.49 million last year, reflecting challenges from weakened market demand and intensified competition.
- Market Outlook: Despite the revenue drop, the improvement in profitability may support the company's future strategic adjustments, particularly in optimizing costs and enhancing customer experience.
- Earnings Highlights: 1-800 FLOWERS.COM reported a Q2 Non-GAAP EPS of $1.20, while revenue fell to $702.2 million, down 9.5% year-over-year, indicating pressure in market competition.
- Adjusted EBITDA Decline: The adjusted EBITDA for the quarter was $98.1 million, a decrease from $116.3 million in the prior year, reflecting challenges in cost control and profitability.
- Future Outlook: The company expects a slight decline in adjusted EBITDA for the second half of Fiscal Year 2026, although normalized figures suggest a modest year-over-year increase, indicating cautious optimism from management regarding future profitability.
- Cost Impact: Anticipated incentive compensation and consultant costs of approximately $12 million in the second half of Fiscal Year 2026 will affect overall profitability, necessitating close monitoring of its potential impact on cash flow.

- Revenue Decline: In Q2 of Fiscal 2026, 1-800-Flowers.com reported total revenues of $702.2 million, a 9.5% year-over-year decline, reflecting ongoing challenges in improving marketing spend efficiency that may impact future competitiveness.
- Adjusted EBITDA Outlook: The company anticipates a slight decline in Adjusted EBITDA for the second half of Fiscal 2026, although a normalized basis suggests a slight year-over-year increase, indicating pressure on profitability despite ongoing cost optimization efforts.
- Strategic Transformation Progress: CEO Adolfo Villagomez highlighted that the company remained focused on executing key strategic priorities during the holiday period, achieving significant progress in organizational streamlining and cost optimization, which lays a foundation for future sustainable growth despite structural challenges.
- Future Outlook: The company expects revenues to decline in the low double-digit range for the second half of Fiscal 2026, primarily due to changes in search engine results pages and increased paid placements, indicating a need for adjustments in marketing strategies amid a more competitive market environment.
- Earnings Release Companies: Major companies expected to report earnings before Thursday's open include Altria Group (MO), Caterpillar (CAT), Lockheed Martin (LMT), Mastercard (MA), and Nokia (NOK), all of which hold significant positions in their respective industries.
- Additional Earnings Forecast: Furthermore, other companies anticipated to release earnings include ALGM, AMP, AOS, among nearly 70 others, indicating strong market interest in the upcoming earnings season.
- Market Reaction Expectations: Investor reactions to these earnings reports could significantly impact the stock price volatility of the respective companies, especially amid increasing economic uncertainty, making the results a crucial indicator of market sentiment.
- Importance of Earnings Season: The earnings season is typically a critical time for investors to assess company performance and future prospects, particularly in the current economic climate where corporate profitability and growth potential will be closely scrutinized.
- Earnings Announcement Date: 1-800 FLOWERS.COM is set to release its Q2 earnings on January 29 before market open, with a consensus EPS estimate of $0.86, reflecting a 20.4% year-over-year decline, indicating profitability pressures for the company.
- Revenue Decline Forecast: The anticipated revenue for Q2 is $700.58 million, down 9.7% year-over-year, suggesting that the company may face significant sales challenges in a competitive market environment.
- Earnings Estimate Revisions: Over the past three months, there have been no upward revisions to EPS estimates and two downward revisions, indicating a weakening analyst confidence in the company's future profitability.
- Historical Performance Review: Over the last two years, 1-800 FLOWERS.COM has only beaten EPS and revenue estimates 25% of the time, reflecting significant performance volatility that may impact investor confidence.








