1-800-FLOWERS.COM (FLWS) Q1 2027 earnings summary

Executive summary

• Q1 FY27 continuing-operations revenue fell 11.1% YoY to $171.4M; net loss was $50.6M and Adjusted EBITDA loss was $31.9M.

• Primary-site demand improved sequentially, while other websites and B2B operations remained weak.

• Priorities include improving primary websites, focusing on profitable growth, simplifying the portfolio, and reducing operating costs.

Financial highlights

• Revenue was $171.4M versus $192.7M YoY; gross profit was $58.5M versus $68.1M, and operating loss was $46.5M versus $47.2M.

• Gross margin declined 120 bps to 34.1%, pressured by lower volume, fuel surcharges, and promotional testing, partly offset by cost-efficiency savings.

• Adjusted operating expenses, excluding non-recurring charges and deferred-compensation plan impacts, fell $10.6M to $102.3M.

• Continuing-operations net loss was $50.6M versus $49.0M; Adjusted EBITDA loss was $31.9M versus $31.7M.

• Continuing-operations free cash flow was negative $129.8M versus negative $136.5M; net cash used in operating activities was $126.1M.

Outlook and guidance

• FY27 guidance calls for revenue to decline 2%–5% and Adjusted EBITDA of $10M–$15M, reflecting divestitures and underlying-business expectations.

• Management is cautiously optimistic that primary-site demand improvement will continue into the holiday season; marketing and digital initiatives may contribute from Q2, with benefits building over time.

• Holiday seasonality is expected to generate over 40% of annual revenue and all annual earnings; holiday cash generation is expected to support repayment of working-capital borrowings.

• Network optimization savings are excluded from FY27 guidance; initial benefits are expected in FY28.