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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLWS is 8.25 USD with a low forecast of 7.50 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 4.020
Low
7.50
Averages
8.25
High
9.00
Current: 4.020
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.com Surprises with Earnings, Stock Jumps
- 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.
See More
1-800-Flowers.com Reports Increased Q2 Profit
- 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.
See More
1-800 FLOWERS.COM Q2 Earnings Report Analysis
- 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.
See More
1-800-Flowers.com Reports Q2 Fiscal 2026 Results Amid Strategic Transformation
- 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.
See More
Major Earnings Reports Expected Before Thursday's Open
- 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.
See More
1-800 FLOWERS.COM Set to Announce Q2 Earnings on January 29
- 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.
See More
1-800-Flowers.com Surprises with Earnings, Stock Jumps
- 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.
See More
1-800-Flowers.com Reports Increased Q2 Profit
- 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.
See More
1-800 FLOWERS.COM Q2 Earnings Report Analysis
- 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.
See More
1-800-Flowers.com Reports Q2 Fiscal 2026 Results Amid Strategic Transformation
- 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.
See More
Major Earnings Reports Expected Before Thursday's Open
- 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.
See More
1-800 FLOWERS.COM Set to Announce Q2 Earnings on January 29
- 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.
See More
