1-800-Flowers.Com Inc. Reports Challenging Fiscal 2025 Results
1-800-Flowers.Com Inc. has released its annual report for the fiscal year 2025, revealing significant challenges the company faced amidst a difficult economic environment. Despite its position as a leading provider of gifts aimed at fostering connections, the company experienced a notable decline in revenues and an increase in net losses.
1. Fiscal 2025 Overview
In fiscal 2025, 1-800-Flowers.Com Inc. reported net revenues of $1.685 billion, a decrease of $145.8 million or 8% compared to fiscal 2024. This decline was attributed to a slowdown in demand for everyday gifting, influenced by macroeconomic factors such as inflation and a softening labor market. Additionally, a highly promotional environment during the holiday season negatively impacted sales.
Revenue Breakdown by Segment
The company operates through three primary segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. The revenue by segments for fiscal 2025 is summarized below:
- Consumer Floral & Gifts: $776.7 million (down 8.6% from 2024)
- Gourmet Foods & Gift Baskets: $810.9 million (down 7.2% from 2024)
- BloomNet: $98.7 million (down 8.4% from 2024)
Revenue by Products and Services
A further breakdown of revenue by products and services indicates:
- E-commerce: $1.46 billion (down 9.3% from 2024)
- Other: $221.2 million (up 1.8% from 2024)
2. Financial Performance
1-800-Flowers.Com Inc. reported a gross margin of 38.7%, a decrease of 140 basis points from the previous year, primarily due to increased merchandise costs and the deleveraging of fixed costs. The company recorded a net loss of $200 million, a stark contrast to the net loss of $6.1 million in fiscal 2024. Adjusted EBITDA also suffered, dropping to $29.2 million from $93.1 million the previous year.
Income Statement Highlights
Key highlights from the income statement for fiscal 2025 include:
| Sep 2024 | Sep 2025 | |
|---|---|---|
Net Income | -6.10M | -199.9M |
Profit | -6.10M | -199.9M |
Net Income Continuing | -6.10M | -199.9M |
Income Tax Expense | 203K | -13.36M |
Pretax Income | -5.90M | -213.3M |
Non-operating Income | -3.83M | -8.54M |
Operating Income | -2.07M | -204.8M |
Revenue | 1.83B | 1.68B |
Costs and Expenses | 1.83B | 1.89B |
Cost of Revenue | 1.09B | 1.03B |
Operating Expenses | 736.8M | 857.0M |
Depreciation, Depletion & Amortization | 53.75M | 53.61M |
Impairment Expense | 19.76M | 143.8M |
Selling, General & Administrative | 603.0M | 597.3M |
Other Operating Expenses | 60.23M | 62.27M |
- Revenue: $1.685 billion
- Cost of Revenue: $1.03 billion
- Operating Expenses: $857 million
- Net Loss: $200 million
3. Impairment Charges
In light of the declining market conditions, the company recognized a non-cash goodwill and intangible asset impairment charge of $138.2 million, which included $113.4 million related to goodwill and $24.8 million for the Personalization Mall tradename. An additional adjustment of $5.6 million was made in the fourth quarter to refine the allocation of the impairment charge.
4. Strategic Acquisitions
Despite the challenging financial landscape, 1-800-Flowers.Com Inc. pursued strategic acquisitions to enhance its market presence. Key acquisitions included:
- Things Remembered: Acquired for $5.0 million in January 2023, integrated into PersonalizationMall.com.
- Scharffen Berger: Acquired for approximately $3.3 million in July 2024, bolstering the Gourmet Foods & Gift Baskets segment.
- Card Isle: Acquired for $3.6 million in April 2024, expanding the company’s footprint in the greeting card market.
5. Expense Management
The company attempted to manage its expenses effectively during fiscal 2025:
- Marketing and Sales Expenses: Decreased by 0.9%, although the percentage of revenue allocated to these expenses increased due to heightened advertising costs.
- Technology and Development Expenses: Rose by 3.4%, driven by enhancements to the technology platform.
- General and Administrative Expenses: Decreased by 1.0% due to lower labor costs.
Balance Sheet Overview
The balance sheet as of June 29, 2025, shows total assets of $772.6 million, a significant decrease from $996.2 million in 2024. Total liabilities amounted to $504.3 million, while total equity was reported at $268.2 million.
| Sep 2024 | Sep 2025 | |
|---|---|---|
Total Assets | 996.2M | 772.6M |
Total Current Assets | 385.7M | 282.7M |
Cash and Equivalents | 159.4M | 46.50M |
Net Inventories | 176.5M | 177.1M |
Accounts Receivable | 18.02M | 21.69M |
Prepaid Expenses | 31.68M | 37.40M |
Total Non-current Assets | 610.4M | 489.8M |
Intangible Assets | 272.7M | 126.9M |
Net PP&E | 223.7M | 215.5M |
Lease Assets | 113.9M | 107.4M |
Other Non-current Assets | 0 | 39.82M |
Total Liabilities and Equity | 1.03B | 772.6M |
Total Liabilities | 566.3M | 504.3M |
Total Current Liabilities | 227.8M | 221.3M |
Accounts Payable and Accrued Liabilities | 201.3M | 184.4M |
Current Debt | 26.51M | 36.91M |
Total Non-current Liabilities | 338.4M | 282.9M |
Long-term Debt | 177.1M | 134.7M |
Non-current Deferred Tax Liabilities | 19.40M | 6.67M |
Other Non-current Liabilities | 141.9M | 141.5M |
Total Equity and Non-controlling Interests | 466.3M | 268.2M |
Total Equity | 466.4M | 268.2M |
6. Cash Flow Analysis
In fiscal 2025, the company reported a net cash used for operating activities of $26.4 million, primarily due to changes in working capital. Cash used in investing activities totaled $44.5 million, largely for technology initiatives and acquisitions.
| Sep 2024 | Sep 2025 | |
|---|---|---|
Net Change in Cash | 32.63M | -112.9M |
Net Cash from Operating Activities | 94.99M | -26.36M |
Operating Profit | -6.10M | -199.9M |
Adjustment to Operating Profit | 101.1M | 173.6M |
Net Cash from Investing Activities | -42.30M | -44.46M |
Business & Interest in Affiliates | 3.67M | 3M |
Productive Assets | 38.63M | 41.46M |
Net Cash from Financing Activities | -20.06M | -42.10M |
Debt | -10M | -30M |
Equity Issuance/Repurchase | -10.06M | -9.89M |
Other Financing Activities | 0 | -2.21M |
7. Conclusion
The fiscal year 2025 was marked by significant challenges for 1-800-Flowers.Com Inc. The decline in revenues and the increase in net losses indicate the need for strategic adaptations in response to the economic headwinds. The company is focusing on operational efficiencies and strategic acquisitions to navigate the current landscape and position itself for future growth as it aims to regain its footing in the competitive gifting market.
