1-800-FLOWERS.COM (FLWS) Q4 2021 earnings summary

Executive summary

• FY21 revenue rose 42.5% to $2.122B, surpassing $2B; the business had nearly doubled in scale since FY19.

• Added 6.5M+ new customers; active customers exceeded 13M, and existing customers generated more than 60% of FY21 revenue.

• Adjusted EBITDA increased 64.5% to $213.1M; free cash flow reached $118.1M.

Financial highlights

• Net revenue was $2,122.2M, up 42.5%; excluding PersonalizationMall, revenue grew 26.6%.

• Operating income rose to $149.1M from $80.4M; net income increased to $118.7M from $59.0M.

• Diluted EPS was $1.78 reported and $1.84 adjusted; adjusted EPS excludes acquisition litigation and transaction costs and Harry & David store closure recoveries.

• Gross profit increased 44.1% to $896.4M; gross margin was 42.2%, up 40 bps YoY.

• E-commerce revenue increased 52.8%; 26.0M orders were fulfilled, up 54.9%, while average order value declined 1.4% to $72.22.

Outlook and guidance

• FY22 guidance: revenue growth of 10%-12%, adjusted EBITDA growth of 5%-8%, EPS in line with FY21, and free cash flow above $100M.

• EPS guidance reflects expected EBITDA improvement offset by higher depreciation and a higher effective tax rate.

• Growth assumptions include continued e-commerce adoption, expanded products, customer-file gains, and Celebrations Passport membership growth.

• Planned investment in automation across manufacturing, warehouse, and distribution operations to support growth and reduce seasonal labor reliance.