1-800-FLOWERS.COM, Inc. (FLWS) Bundle
A Brief History of 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. has established itself as a leading provider of floral and gourmet food gifts. As of 2024, the company has continued to navigate challenges in the retail environment, particularly in the e-commerce sector.
Financial Performance Overview
For the three months ended September 29, 2024, 1-800-FLOWERS.COM reported:
| Item | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Total Net Revenues | $242,090,000 | $269,050,000 | -10.0% |
| Net Loss | $(34,190,000) | $(31,242,000) | -9.8% |
| Adjusted Net Loss | $(32,937,000) | $(31,242,000) | -5.4% |
| Basic and Diluted Net Loss per Share | $(0.53) | $(0.48) | -10.4% |
| Free Cash Flow | $(189,316,000) | $(150,858,000) | -25.5% |
The decline in total net revenues is attributed to lower order volume across the company's segments, reflecting ongoing macroeconomic pressures that have affected consumer discretionary spending. The e-commerce segment, which is a significant revenue driver, saw a decrease of 8.0% in sales compared to the previous year.
Segment Performance
1-800-FLOWERS.COM operates through three primary segments: Consumer Floral & Gifts, BloomNet, and Gourmet Foods & Gift Baskets. The financial performance by segment for the three months ended September 29, 2024, is as follows:
| Segment | Net Revenues (Q1 2024) | Net Revenues (Q1 2023) | Change (%) |
|---|---|---|---|
| Consumer Floral & Gifts | $135,180,000 | $142,194,000 | -4.9% |
| BloomNet | $23,075,000 | $28,870,000 | -20.1% |
| Gourmet Foods & Gift Baskets | $84,003,000 | $98,109,000 | -14.4% |
Operating Expenses
The company's operating expenses for the three months ended September 29, 2024, were as follows:
| Expense Type | Amount (Q1 2024) | Amount (Q1 2023) | Change (%) |
|---|---|---|---|
| Marketing and Sales | $82,097,000 | $82,518,000 | -0.5% |
| Technology and Development | $15,639,000 | $15,304,000 | 2.2% |
| General and Administrative | $28,526,000 | $28,489,000 | 0.1% |
| Depreciation and Amortization | $13,038,000 | $13,194,000 | -1.2% |
Cash Flow and Liquidity
As of September 29, 2024, the company reported cash and cash equivalents of $8.4 million, a significant decrease from $159.4 million as of June 30, 2024. The decrease in cash flow was primarily driven by net cash used in operating activities of $177.2 million, attributed to the net loss and seasonal changes in working capital.
The company had a working capital of $118.7 million at the end of the quarter, down from $157.9 million at the end of the previous fiscal quarter.
Conclusion of Financial Highlights
1-800-FLOWERS.COM, Inc. continues to face challenges in a competitive market, with significant impacts on revenue and profitability. The company remains focused on strategic initiatives to enhance operational efficiencies and improve customer engagement.
A Who Owns 1-800-FLOWERS.COM, Inc. (FLWS)
Ownership Structure
As of 2024, the ownership structure of 1-800-FLOWERS.COM, Inc. (FLWS) is primarily comprised of institutional and retail investors. The company has two classes of common stock: Class A and Class B. The Class A shares are publicly traded on the NASDAQ under the ticker symbol FLWS, while Class B shares are typically held by insiders and have enhanced voting rights.
| Share Class | Percentage of Total Shares Outstanding | Voting Rights |
|---|---|---|
| Class A | 64.0% | 1 vote per share |
| Class B | 36.0% | 10 votes per share |
Major Shareholders
The following table outlines the major shareholders of 1-800-FLOWERS.COM, Inc. as of September 29, 2024:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Intercontinental Exchange, Inc. | 4,500,000 | 7.6% |
| BlackRock, Inc. | 4,200,000 | 7.1% |
| The Vanguard Group, Inc. | 3,800,000 | 6.4% |
| FMR LLC (Fidelity) | 3,600,000 | 6.0% |
| Insider Holdings (Executive Team) | 10,000,000 | 16.7% |
Recent Stock Performance
As of the end of September 2024, 1-800-FLOWERS.COM, Inc. reported a stock price of $7.79 per share. This reflects a decrease of approximately 10% from the previous year’s closing price of $8.66. The company has faced challenges in revenue growth attributed to macroeconomic conditions impacting consumer spending.
Financial Overview
For the three months ended September 29, 2024, the company reported the following financial figures:
| Financial Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Revenues | $242.09 million | $269.05 million |
| Net Loss | $(34.19 million) | $(31.24 million) |
| Basic and Diluted Loss per Share | $(0.53) | $(0.48) |
| Cash and Cash Equivalents | $8.4 million | $159.4 million |
Recent Acquisitions
1-800-FLOWERS.COM, Inc. has made two notable acquisitions in 2024:
- Scharffen Berger, acquired on July 1, 2024, for approximately $3.3 million.
- Card Isle, acquired on April 3, 2024, for approximately $3.6 million.
Stock Repurchase Program
The company has a stock repurchase program authorized for up to $40 million. As of September 29, 2024, approximately $20.3 million remains available under this program, with the company purchasing 160,413 shares at an average price of $7.79 during the three months ended.
1-800-FLOWERS.COM, Inc. (FLWS) Mission Statement
Overview of Mission Statement
The mission statement of 1-800-FLOWERS.COM, Inc. emphasizes delivering exceptional customer experiences through quality products and services in the floral and gourmet gift categories. The company aims to create meaningful connections between people by providing a wide range of gifting options for various occasions.
Core Values
- Customer Commitment: Focused on delivering outstanding service and value to customers.
- Quality Products: Ensuring high-quality flowers and gourmet gifts.
- Innovation: Continuously improving product offerings and services.
- Community Engagement: Actively participating in local communities and supporting charitable causes.
Financial Performance
As of the first quarter of fiscal year 2025, 1-800-FLOWERS.COM reported a net loss of $34.19 million, compared to a net loss of $31.24 million in the same period of the previous year. Total revenues decreased by 10.0%, from $269.05 million to $242.09 million.
| Financial Metrics | Q1 2024 | Q1 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $242.09 million | $269.05 million | -10.0% |
| Net Loss | $(34.19) million | $(31.24) million | 10.0% |
| EBITDA | $(33.94) million | $(24.38) million | 39.1% |
| Average Order Value | $78.25 | Not disclosed | Decreased by 1.5% |
Customer Engagement Strategies
1-800-FLOWERS.COM employs various strategies to enhance customer engagement, including personalized marketing, loyalty programs, and a user-friendly online shopping experience. The company reports fulfilling approximately 2.5 million orders through its e-commerce sales channel, reflecting a decline of 6.5% year-over-year.
Market Position
The company continues to face challenges due to macroeconomic conditions impacting consumer discretionary spending. The fiscal year 2025 is projected to see total revenues either flat or decreasing in the low single digits, indicating a cautious outlook amid economic pressures.
Segment Performance
The revenue breakdown by segment for the three months ended September 29, 2024, shows a decline across various categories:
| Segment | Net Revenues (Q1 2024) | Net Revenues (Q1 2023) | Change (%) |
|---|---|---|---|
| Consumer Floral & Gifts | $135.18 million | $142.19 million | -4.9% |
| BloomNet | $23.08 million | $28.87 million | -20.1% |
| Gourmet Foods & Gift Baskets | $84.00 million | $98.11 million | -14.4% |
| Total Net Revenues | $242.09 million | $269.05 million | -10.0% |
Future Outlook
The company plans to expand its product offerings and enhance customer experiences while navigating ongoing economic challenges. The acquisitions of Scharffen Berger and Card Isle are expected to bolster its gourmet foods and greeting card segments, respectively, although their contributions in the first quarter were not significant.
How 1-800-FLOWERS.COM, Inc. (FLWS) Works
Business Model
1-800-FLOWERS.COM, Inc. operates primarily through three business segments:
- Consumer Floral & Gifts
- BloomNet
- Gourmet Foods & Gift Baskets
The company generates revenue from the sale of floral and gourmet products through e-commerce and retail channels. In the three months ended September 29, 2024, the company fulfilled approximately 2.5 million orders, reflecting a decrease of 6.5% year-over-year.
Financial Performance
For the three months ended September 29, 2024, 1-800-FLOWERS.COM reported the following financial results:
| Item | Q1 2024 | Q1 2023 | % Change |
|---|---|---|---|
| Net Revenues | $242,090,000 | $269,050,000 | -10.0% |
| Cost of Revenues | $149,771,000 | $167,122,000 | -10.4% |
| Gross Profit | $92,319,000 | $101,928,000 | -9.4% |
| Operating Loss | $(46,981,000) | $(37,577,000) | 24.3% |
| Net Loss | $(34,190,000) | $(31,242,000) | 9.3% |
| Basic and Diluted Loss per Share | $(0.53) | $(0.48) | 10.4% |
Revenue Breakdown by Segment
The company’s revenue by segment for the three months ended September 29, 2024, is as follows:
| Segment | Net Revenues (Q1 2024) | Net Revenues (Q1 2023) | % Change |
|---|---|---|---|
| Consumer Floral & Gifts | $135,180,000 | $142,194,000 | -4.9% |
| BloomNet | $23,075,000 | $28,870,000 | -20.1% |
| Gourmet Foods & Gift Baskets | $84,003,000 | $98,109,000 | -14.4% |
Operational Costs
Operating expenses for the company during the same period were as follows:
| Expense Type | Amount (Q1 2024) | Amount (Q1 2023) | % Change |
|---|---|---|---|
| Marketing and Sales | $82,097,000 | $82,518,000 | -0.5% |
| Technology and Development | $15,639,000 | $15,304,000 | 2.2% |
| General and Administrative | $28,526,000 | $28,489,000 | 0.1% |
| Depreciation and Amortization | $13,038,000 | $13,194,000 | -1.2% |
Liquidity and Capital Resources
As of September 29, 2024, the company reported working capital of $118.7 million, including cash and cash equivalents of $8.4 million. The company’s principal sources of liquidity are cash on hand, cash flows generated from operations, and available borrowings under its credit agreement.
Market Challenges
The company's performance has been affected by macroeconomic conditions, leading to a decline in consumer discretionary spending. The average order value decreased by 1.5% to $78.25.
Stock Repurchase Program
1-800-FLOWERS.COM has a stock repurchase program authorized for up to $40 million. As of September 29, 2024, approximately $20.3 million remained authorized under this plan.
How 1-800-FLOWERS.COM, Inc. (FLWS) Makes Money
Revenue Streams
1-800-FLOWERS.COM, Inc. generates revenue primarily through three business segments:
- Consumer Floral & Gifts
- BloomNet
- Gourmet Foods & Gift Baskets
Financial Performance
For the three months ended September 29, 2024, the company reported total net revenues of $242.09 million, a decrease of 10.0% from $269.05 million in the same period in the prior year.
| Segment | Net Revenues (2024) | Net Revenues (2023) | % Change |
|---|---|---|---|
| Consumer Floral & Gifts | $135.18 million | $142.19 million | -4.9% |
| BloomNet | $23.08 million | $28.87 million | -20.1% |
| Gourmet Foods & Gift Baskets | $84.00 million | $98.11 million | -14.4% |
| Corporate and Eliminations | $0.09 million | $0.27 million | -67.0% |
| Total | $242.09 million | $269.05 million | -10.0% |
Cost of Revenues
The cost of revenues for the same period was $149.77 million, down from $167.12 million in the previous year, leading to a gross profit of $92.32 million, which represents a gross profit margin of 38.1%.
Operating Expenses
Total operating expenses for the three months ended September 29, 2024, were $139.30 million, slightly down from $139.51 million in the same period of the prior year. Key components include:
- Marketing and sales: $82.10 million
- Technology and development: $15.64 million
- General and administrative: $28.53 million
- Depreciation and amortization: $13.04 million
Net Loss
1-800-FLOWERS.COM, Inc. reported a net loss of $34.19 million for the three months ended September 29, 2024, compared to a net loss of $31.24 million for the same period in the previous year. The basic and diluted net loss per common share was $0.53.
Adjusted EBITDA
The adjusted EBITDA for the company was $(27.95 million) for the three months ended September 29, 2024, compared to $(22.52 million) in the previous year, reflecting a decline in operational performance.
Order Fulfillment and Average Order Value
During the three months ended September 29, 2024, the company fulfilled approximately 2.5 million orders, a decrease of 6.5% compared to the previous year. The average order value was $78.25, down 1.5% year-over-year.
Conclusion on Business Model
1-800-FLOWERS.COM, Inc. employs a multi-channel approach to sales, leveraging both e-commerce and telephonic sales. The company continues to adapt its product mix to target a broader consumer base, particularly focusing on more modestly priced items amidst challenging macroeconomic conditions.
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Article updated on 8 Nov 2024
Resources:
- 1-800-FLOWERS.COM, Inc. (FLWS) Financial Statements – Access the full quarterly financial statements for Q1 2024 to get an in-depth view of 1-800-FLOWERS.COM, Inc. (FLWS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View 1-800-FLOWERS.COM, Inc. (FLWS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.