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1-800-FLOWERS.COM (FLWS) investor relations material
1-800-FLOWERS.COM Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for the fiscal 2026 second quarter was $702.2 million, down 9.5% year-over-year, reflecting a strategic shift to improve marketing effectiveness and profitability.
Operational performance during the holiday season was strong, with significant improvements in order management systems and overall stability compared to last year.
Organizational restructuring shifted from brand-based to function-based operations, resulting in cost reductions, workforce realignment, and improved collaboration.
Leadership team strengthened with the addition of a new CIO to drive technology modernization and AI initiatives.
Net income rose to $70.6 million ($1.10 per diluted share) from $64.3 million ($1.00 per share) in the prior year period; adjusted net income was $76.7 million ($1.20 per diluted share), up from $69.2 million ($1.08 per share).
Financial highlights
Gross margin declined 120 basis points to 42.1% due to lower sales, higher tariffs, commodity, and shipping costs.
Operating expenses fell by $23.4 million to $221.1 million, mainly from lower marketing and labor costs.
Adjusted EBITDA was $98.1 million, down from $116.3 million in the prior-year period.
Free cash flow for the six months ended December 28, 2025, was $156.6 million, up from $128.3 million in the prior year.
Cash and cash equivalents at quarter-end were $193.3 million, up from $46.5 million at the end of June 2025; revolver borrowings fully repaid.
Outlook and guidance
Revenue for the second half of fiscal 2026 expected to decline in the low double-digit range year-over-year.
Adjusted EBITDA for the second half projected to decline slightly, but to increase slightly on a normalized basis excluding $12 million in incentive and consultant costs.
Ongoing cost optimization and organizational streamlining expected to offset top-line pressure.
Full-year cost savings of $50 million targeted across fiscal 2026 and 2027, with $15 million already achieved.
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