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- **Revenue Challenges**: Q2 revenue down 9.5% YoY, driven by strategic marketing cuts and direct traffic decline. Consumer Floral & Gifts segment (-22.7%) underperformed, offset by Food segment growth (+3.8%).
- **Cost Savings Progress**: Achieved $15M annualized cost savings, targeting $50M by FY2027. Consultant costs (~$11M) expected to roll off by FY2027.
- **Strategic Shifts**: Abandoned pop-up stores due to low ROI, testing year-round retail models. New CIO to drive AI and technology modernization.
- **Valentine's Day Outlook**: Despite challenging Saturday placement, prepared with merchandising adjustments. AOV up 5.2% Q2, signaling customer basket improvement.
- **Commodity Risks**: Cocoa prices remain elevated, but other commodities stabilizing. External marketplaces growth offsets top-line pressure.

**【CEO Summary Section】**
- **Operational Strength During Holidays**: Despite revenue slightly below expectations, operations ran smoothly, addressing past order management system issues. Direct traffic declined due to increased paid placements and AI-driven content, offset by stronger B2B and wholesale performance.
- **Organizational Restructuring**: Transitioned to a function-based structure to improve efficiency, reduce costs, and streamline decision-making. Achieved $15M annualized cost savings, with $50M total savings target by FY2027.
- **New Leadership**: Hired Alex Zelikovsky as CIO to modernize technology and support AI initiatives. Testing new retail models, abandoning pop-up stores due to low ROI, focusing on year-round store concepts.
- **Marketing Strategy**: Focused on profitable traffic, improving ad-to-sales ratio, and reducing unprofitable initiatives. AOV up 5.2%, order volume down 16%.

**【CFO Financial Commentary】**
- **Revenue and Margin**: Q2 revenue declined 9.5% YoY, driven by Consumer Floral & Gifts (-22.7%) and Gourmet Foods (-3.8%). Gross margin fell 120bps to 42.1% due to cost pressures and lower absorption. Adjusted EBITDA was $98.1M, down from $116.3M YoY.
- **Cost Management**: Operating expenses decreased $23.4M YoY, with $15M annualized savings. Consultant costs (~$11M) are front-loaded but expected to roll off by FY2027. Second half revenue expected to decline in the low double digits, with EBITDA slightly lower YoY.
- **Balance Sheet**: Net cash of $42.3M, with no revolver borrowings. Focused on disciplined capital allocation and cost savings acceleration.

**【Q&A Highlights】**
- **Segment Performance**: Pmall decline (-22.7%) due to inefficient marketing spend, while Food segment (+3.8%) benefited from B2B growth. Valentine's Day on a Saturday may impact sales, but merchandising adjustments are in place.
- **Consumer Insights**: Higher-income households show resilience, while lower-income segments remain soft. Loyalty program improvements planned to enhance member value.
- **Commodity Trends**: Cocoa prices elevated, but eggs, butter, and sugar stabilizing. External marketplaces (e.g., Amazon, Uber) growing rapidly, expanding reach.
- **Capital Allocation**: Prioritizing operational efficiency, customer experience, and technology. No immediate plans for acquisitions or asset sales, focusing on core stabilization.

1-800-FLOWERS.COM, Inc. (FLWS) Q2 2026 Earnings Call Transcript

- **Strategic Shift to Marketing Efficiency**: Focused on contribution margin, reducing $17 million in costs with $50 million savings potential.
- **New Channels Growth**: Amazon/Walmart sales and 9 holiday pop-ups testing physical retail concepts.
- **Financial Challenges**: 11.1% revenue decline, gross margin pressure from tariffs and transportation.
- **Holiday Season Outlook**: Wholesale orders shifted to Q2, positioning for peak sales.
- **Tariff Risks**: Potential Colombia flower tariffs could increase industry-wide costs.
- **Physical Retail Expansion**: Testing brand awareness and profitability through pop-ups.
- **Cost Savings Initiatives**: $50 million over two years via operational efficiency.
- **Competitive Pressures**: Rising marketing costs due to competitor activity.
- **Tax Considerations**: Cumulative losses require valuation allowance.
- **Commodity Cost Stability**: Tariffs and transportation costs offsetting savings.
- **Q&A Highlights**: Early success in third-party marketplaces, holiday sales optimism.


**【CEO Summary Section】**
- Shifted focus to marketing contribution margin, resulting in early positive trends and $50 million in potential cost savings over two years.
- Expanded into third-party marketplaces (Amazon, Walmart) and launched 9 holiday pop-up stores to test physical retail concepts.
- Hired Chief Marketing and Growth Officer to drive customer-centric strategies and AI-driven growth.

**【CFO Financial Commentary】**
- Q1 2026 revenue decreased 11.1% to $340 million, with a 240bps gross margin decline due to sales deleveraging and tariffs.
- Adjusted EBITDA loss of $32.9 million, showing year-over-year improvement.
- Borrowed $110 million for holiday season, with plans to repay by Q2.
- Anticipates $50 million in cost savings through operational efficiency and marketing optimization.

**【Q&A Highlights】**
- Tariffs and fuel surcharges remain challenges, but early sales on Amazon/Walmart are positive.
- Holiday season expected to drive revenue growth, with wholesale orders shifting from Q1 to Q2.
- Colombia tariffs could impact industry-wide flower prices.
- Physical retail pop-ups testing brand awareness and profitability.
- Tax expense due to cumulative losses requiring valuation allowance.
- Commodity costs stable, with tariffs and transportation costs offsetting savings.
- Competitive pressures in consumer floral market increasing marketing spend inefficiencies.


1-800-FLOWERS.COM, Inc. (FLWS) Q1 2026 Earnings Call Transcript

- **Strategic Shift Announced**: New CEO prioritizes cost-cutting, customer loyalty, and multi-channel expansion to reverse 8% FY25 revenue decline.
- **Financial Challenges**: Q4 EBITDA loss of $24.2M reflects operational inefficiencies and $15M tariff headwind.
- **Cost Savings Initiative**: Targeting $40M annual savings, with $17M already achieved and external consulting support.
- **Marketing Overhaul**: Shifting to full-funnel strategy, focusing on profitable customer acquisition and retention.
- **Retail Expansion**: Testing 9 new physical locations to expand beyond e-commerce, targeting self-consumption products.

**【CEO Summary Section】**
- **New Strategic Focus**: CEO Adolfo Villagomez introduced the 'Celebration Strategy,' emphasizing a customer-centric, data-driven transformation to address declining sales and inefficiencies. Key pillars include cost savings, modernized customer experience, multi-channel expansion, and talent development.
- **Immediate Challenges**: FY25 revenue declined 8% due to inefficient marketing, operational inefficiencies, and macroeconomic pressures. Q4 revenue fell 6.7%, with a 5.6% drop in transactions and 1.6% decrease in AOV.
- **Cost Optimization**: Launched a $40M annualized cost reduction plan, including $17M already implemented. Engaged external consultants to identify further efficiencies in procurement, supply chain, and IT.
- **Customer Loyalty & Retention**: Plans to enhance the Passport loyalty program, focusing on multi-branded sales (13% of customers, 29% of revenue) and personalized experiences. Q4 saw 9.5M customers, with 74% of revenue from repeat buyers.

**【CFO Financial Commentary】**
- **Financial Performance**: Q4 GAAP net loss was $24.2M (vs. $8.8M prior year), with FY25 EBITDA down 68% to $29.2M. Gross margin declined 290bps to 35.5% due to promotional activity and cost deleverage.
- **Cost Control Progress**: Operating expenses reduced $3.7M in Q4 and $10.9M annually, with marketing spend optimization. FY25 ended with $114M net debt and $47M cash.
- **Tariffs Impact**: $15M annualized tariff headwind remains, down from $55M peak. Other commodities are stabilizing, but cocoa prices remain elevated.

**【Q&A Key Highlights】**
- **Marketing Efficiency**: Shifted from bottom-funnel spend to full-funnel strategy, focusing on variable contribution margin. Q4 marketing pullback aligned with EBITDA focus.
- **Competitive Landscape**: General industry competition, not 'bad actors,' driven by evolving customer channels. Expanding into marketplaces and physical retail to meet customers where they shop.
- **Holiday Sales**: Mother's Day sales matched expectations, down YoY due to margin-focused approach. Easter shift from Q3 to Q4 partially offset Q4 decline.
- **Physical Retail Expansion**: Testing 3 Macy's pop-ups, 5 mall stores, and 1 standalone Harry &amp; David store. Focus on self-consumption products (e.g., cookies, olive oil) for broader appeal.
- **CapEx Outlook**: FY26 CapEx slightly below FY25, with investments in physical retail and digital infrastructure.


1-800-FLOWERS.COM, Inc. (FLWS) Q4 2025 Earnings Call Transcript

- **Strategic Reset**: New CEO Adolfo Villagomez and AI-focused leadership team to drive **Celebrations Wave**, a sentiment-first ecosystem targeting everyday occasions.
- **Financial Challenges**: Q3 revenue down 12.6%, EBITDA loss widens to $34.9M, with tariffs and system failures exacerbating pressures.
- **Operational Focus**: $40M annual cost reduction plan underway, including $17M executed, with AI tools to cut marketing spend (25% of revenue).
- **Retail Experimentation**: Testing pop-up and year-round stores to re-engage customers and leverage brand visibility.
- **Customer Insights**: Higher-income customers resilient, while lower-income consumers pull back, highlighting need for affordable offerings.


**【CEO Opening Remarks】**
- Introduced the new long-term strategy, **Celebrations Wave**, aimed at transforming the company into a comprehensive celebrations ecosystem.
- Acknowledged past challenges, including macroeconomic pressures, retail closures, and system implementation failures, but emphasized a renewed focus on innovation and leadership.
- Highlighted the appointment of **Adolfo Villagomez** as incoming CEO and **Henry Mori** as Chief AI and Transformation Officer to drive digital transformation.

**【CFO Financial Review】**
- Q3 2025 revenue declined **12.6% YoY**, withConsumer Floral & Gifts (-11.4%), Gourmet Foods (-18.2%), and BloomNet (+4.5%).
- Adjusted gross margin dropped **350 bps** to 33.1%, driven by promotional sales and system implementation costs ($4.6M).
- EBITDA loss widened to **$34.9M** vs. $5.7M prior year, due to marketing inefficiencies and macroeconomic headwinds.
- Tariffs on imported goods (10% on non-China, 145% on China) estimated to impact **$55M annually**, primarily affecting Personalization Mall and wholesale businesses.

**【President on Celebrations Wave】**
- Launched a **celebrations app** and reimagined **Celebrations Passport loyalty program** to increase customer engagement and frequency.
- Utilizes AI for personalized gift recommendations and sentiment-driven experiences, aiming to reduce marketing costs (currently 25% of revenue).
- Targets everyday occasions (e.g., greeting cards, muggables) to complement holiday sales and attract younger, diverse customers.

**【Q&A Key Takeaways】**
- **Easter Shift Impact**: Adjusted Q3 revenue decline to **8.9%** (vs. reported 12.6%), with March and January weakness offsetting strong Valentine's Day sales.
- **System Implementation Costs**: $20M+ lost sales in Q2 and $11M incremental costs across Q2/Q3, with full resolution expected by end of fiscal 2025.
- **Tariff Mitigation**: Working with vendors to adjust componentry and pricing, with long-term focus on reshoring.
- **Retail Re-entry**: Testing **holiday pop-up stores** and a **year-round store in Long Island**, with Cheryl's Cookies as top seller.
- **Customer Segmentation**: Higher-income customers driving average ticket growth, while lower-income consumers reduce discretionary spending.


1-800-FLOWERS.COM, Inc. (FLWS) Q3 2025 Earnings Call Transcript

- **Revenue decline of 5.7% YoY**: Driven by consumer caution, corporate gifting pullback, and $20M in OMS-related revenue loss.
- **EBITDA impact**: $4.8M in incremental costs from OMS issues, resulting in Q2 EBITDA of $116.3M (-13.8% YoY).
- **Updated guidance**: Full-year EBITDA $65M-$75M, reflecting ongoing operational challenges.
- **Financial stability**: $247M cash balance, reduced debt, and $25M term loan prepayment.


**【CEO Summary Section】**
- Q2 revenue declined 5.7% YoY, driven by softer consumer demand, reduced corporate gifting orders, and challenges with the new Harry & David OMS system.
- Key issues included order management bottlenecks during peak holiday season, leading to cancellations and manual corrections.
- Management emphasized resolving OMS issues and optimizing marketing spend to improve future performance.

**【CFO Financial Commentary】**
- E-commerce revenue fell 8.3%, with $20M in lost revenue attributed to OMS implementation challenges.
- Adjusted EBITDA was $116.3M, down 13.8% YoY, impacted by $4.8M in incremental costs from OMS issues.
- Full-year guidance updated to revenue decline in mid-single digits, EBITDA $65M-$75M, and free cash flow $25M-$35M.
- Gross margin remained stable at 43.3%, with promotional activity and OMS-related costs offsetting improvements.

**【President's Operational Update】**
- Discussed challenges in adapting to evolving online marketing dynamics and the spillover effects of OMS issues on other brands.
- Highlighted ongoing efforts to resolve system bottlenecks and enhance customer care processes.

**【Key Financial Metrics】**
- Net cash: $87M (vs. $117M YoY)
- Inventory: $157M (down $4M YoY)
- Debt: $160M term loan (down $35M YoY)
- Prepaid $25M on term loan, amended credit agreement.


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