1-800-FLOWERS’ fourth quarter saw management focus on operational stability and cost discipline amid a challenging sales environment. CEO Adolfo Villagomez credited smoother holiday operations and improvements in order system stability, noting, “The stability of our systems this holiday season represents a clear and substantial improvement.” Management cited a shift to more efficient marketing and changes in online search, which reduced direct traffic, as key drivers of weaker top-line performance. The positive market reaction reflected the company’s notable progress in profitability and organizational efficiency.
Is now the time to buy FLWS? Find out in our full research report (it’s free for active Edge members).
1-800-FLOWERS (FLWS) Q4 CY2025 Highlights:
- Revenue: $702.2 million vs analyst estimates of $700.6 million (9.5% year-on-year decline, in line)
- Adjusted EPS: $1.20 vs analyst estimates of $0.86 (39.5% beat)
- Adjusted EBITDA: $98.12 million vs analyst estimates of $96.85 million (14% margin, 1.3% beat)
- Operating Margin: 10.8%, down from 11.9% in the same quarter last year
- Market Capitalization: $262.7 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From 1-800-FLOWERS’s Q4 Earnings Call
- Anthony Lebiedzinski (Sidoti and Company) asked about the drivers behind the significant decline in the Consumer Floral and Gifts segment and the impact of marketing spend adjustments. CFO James Langrock explained that reduced marketing spend, particularly in PMOL, was the main driver of the decline, as the company shifted to a more disciplined approach.
- Anthony Lebiedzinski (Sidoti and Company) inquired about trends and potential changes in the Passport loyalty program. CEO Adolfo Villagomez acknowledged Passport members continue to outperform but said improvements to the loyalty value proposition are in development to drive greater engagement.
- Michael Kupinski (Noble Capital Markets) questioned management’s view on commodity cost trends, especially cocoa, and their expected impact. Langrock responded that while cocoa remains elevated, other commodities are stabilizing and no longer represent a major headwind.
- Doug Lane (Water Tower Research) sought clarification on consultant costs and their timeline. Langrock confirmed that consultant costs are front-loaded and expected to end after the current fiscal year, with future use only as needed for specific projects.
- Doug Lane (Water Tower Research) asked about the divergent performance between floral and food segments. Villagomez attributed food outperformance to strong B2B demand and more disciplined marketing, while floral was more affected by marketing pullbacks and competition.
Catalysts in Upcoming Quarters
Going forward, our team will watch (1) the pace and sustainability of cost savings as consultant expenses phase out, (2) the success of digital and third-party marketplace expansion in driving online traffic and conversions, and (3) the impact of loyalty program enhancements on customer retention and engagement. Progress in product discoverability and the evolution of omnichannel retail strategy will also be critical signposts.
1-800-FLOWERS currently trades at $4.06, in line with $4.04 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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