1-800-Flowers.com, Inc. reported a decline in financial performance for the three months ended September 29, 2024, with net revenues of $242.1 million, a decrease of 10.0% compared to $269.1 million for the same period in the previous year. This decline was attributed to lower order volumes across its three segments, influenced by persistent inflation and higher interest rates, which have moderated consumer discretionary spending. The company noted that the first quarter of Fiscal 2025 lacked major holiday occasions, impacting e-commerce sales primarily related to everyday gift-giving.
Gross profit for the quarter was $92.3 million, down 9.4% from $101.9 million in the prior year. The operating loss widened to $(47.0) million from $(37.6) million, while the net loss increased to $(34.2) million from $(31.2) million year-over-year. The basic and diluted net loss per common share was $(0.53), compared to $(0.48) in the previous year.
The company’s cash and cash equivalents significantly decreased to $8.4 million from $159.4 million at the end of the previous quarter. Trade receivables rose to $41.0 million, up from $18.0 million, and inventories increased to $275.3 million from $176.6 million. Total liabilities also rose to $601.2 million from $566.3 million, while total stockholders’ equity fell to $433.4 million from $466.3 million.
1-800-Flowers.com completed two acquisitions during the quarter: Scharffen Berger for $3.3 million and Card Isle for $3.6 million. Both acquisitions were funded by cash on hand and are deemed immaterial to the company’s consolidated financial statements.
The company’s e-commerce revenue decreased by 8.0%, with approximately 2.5 million orders fulfilled, a decline of 6.5% year-over-year. The average order value fell by 1.5% to $78.25. The Consumer Floral & Gifts segment saw a revenue decrease of 4.9%, while the BloomNet segment experienced a 20.1% decline in revenue.
Looking ahead, 1-800-Flowers.com anticipates improved sales trends during the upcoming holiday season, historically a strong period for gifting. For Fiscal 2025, the company expects total revenues to be flat or decrease in the low single digits compared to the prior year, with adjusted EBITDA projected between $85 million and $95 million. Free cash flow is expected to range from $45 million to $55 million.
About 1 800 FLOWERS COM INC
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