1-800-Flowers.com Q3 2025: Unpacking Key Contradictions in Sales, Consumer Behavior, and Market Strategy

Impact of system implementation issues on sales, consumer spending patterns and market share, same-day delivery expansion, market share in floral business, and retail strategy and consumer engagement are the key contradictions discussed in 1-800-FLOWERS.COM's latest 2025Q3 earnings call.



Sales Performance and Market Conditions:
- 1-800-Flowers.com reported a 12.6% decline in revenue for Q3 2025, with the Consumer Floral and Gifts segment down 11.4% and the Gourmet Foods and Gift Baskets segment down 18.2%.
- The company attributed this decline to macroeconomic pressures, including consumer confidence and sentiment decline, potential tariff impacts, and a softening labor market.
- They also noted that the sales and marketing spend of 25% of revenue has been largely ineffective due to shifts in digital platforms.

Order Management System Implementation:
- The implementation of a new order management system led to a $4.6 million hit in gross profit in Q3, with an estimated $20 million in lost sales during the previous quarter.
- The company acknowledged issues with system complexities, which overwhelmed customer service and affected critical holiday periods, particularly for the Harry & David brand.

Tariff Exposure and Impact:
- 1-800-Flowers.com is exposed to approximately $55 million in tariffs, primarily affecting the personalization and wholesale businesses.
- The company is working with vendors on concessions and modifying assortments to mitigate the impact, acknowledging potential pricing adjustments as a last resort.

Leadership and Strategic Initiatives:
- The company introduced Adolfo Villagomez as the new CEO and Henry Mori as Chief AI and Transformation Officer, enhancing their leadership team and Board of Directors.
- They are focusing on Celebrations Wave, a sixth wave of innovation that includes a new ecosystem with a celebrations app, website, and loyalty program, aiming to drive revenue through personalized customer experiences and engagement.