Breaking Down 1-800-FLOWERS.COM, Inc. (FLWS) Financial Health: Key Insights for Investors

You're looking at 1-800-FLOWERS.COM, Inc. (FLWS) and seeing a gift-giving giant, but the fiscal year 2025 numbers show a company struggling with the consumer spending squeeze and operational hiccups-so the near-term outlook requires a realist's eye. The headline is a significant revenue drop and a steep loss: total consolidated revenues fell 8.0% year-over-year to $1.69 billion, and the company posted a massive GAAP net loss of $200.0 million, which includes a non-cash goodwill impairment charge of $143.8 million. Honestly, the adjusted figures aren't defintely much better, with Adjusted EBITDA collapsing to just $29.2 million from $93.1 million in the prior year, plus free cash flow turned sharply negative at $67.8 million. That kind of performance, driven by a highly promotional market and a shrinking customer base, is why the stock dropped over 23% following the Q4 earnings release, but the management's focus on cost-cutting and the 'Work Smarter' program offers a clear path to margin recovery-if they can fix their new order management system issues, that is.

Revenue Analysis

You need to know where 1-800-FLOWERS.COM, Inc. (FLWS) makes its money, especially given the current economic climate. The direct takeaway is that the company faced a significant contraction in Fiscal Year 2025, with net revenues declining 8.0% year-over-year to $1.685 billion.

This revenue decline, a drop of $145.8 million from the prior year, wasn't isolated to one area. It was a broad-based slowdown, mainly driven by softer demand for everyday gifting as inflation and macroeconomic uncertainty hit consumer discretionary spending. Honestly, when people tighten their belts, flowers and gourmet food are often the first things to go. Plus, a highly promotional environment during the holidays squeezed margins and sales.

The company's revenue streams primarily flow through three segments, and the breakdown for the full Fiscal Year 2025 shows how reliant the business is on its two largest divisions:

• Gourmet Foods & Gift Baskets: Contributed $810.9 million.
• Consumer Floral & Gifts: Accounted for $776.7 million.
• BloomNet: The smallest segment, bringing in $98.7 million.

Here's the quick math on how those segments stack up against the total revenue of $1.685 billion:

What this table clearly shows is that the Gourmet Foods & Gift Baskets segment, which includes brands like Harry & David, is now the largest revenue driver, just edging out the core Consumer Floral & Gifts division. Still, both saw material declines-the Consumer Floral segment was hit the hardest with an 8.6% drop.

Shifting Revenue Mix and E-commerce Risk

The biggest change in the revenue streams is the company's deliberate shift away from an over-reliance on its pure e-commerce channels. In FY2025, e-commerce revenue was $1.46 billion, but this was down a substantial 9.3% from the previous year. The 'Other' revenue category, which includes things like wholesale and retail expansion efforts, was a small bright spot, increasing 1.8% to $221.2 million. This is defintely a key signal.

Management is now focusing on channel expansion, piloting pop-up stores, and experimenting with digital marketplaces and subscription models to diversify revenue beyond the core e-commerce sites. This strategic pivot is crucial because relying too heavily on search platform marketing and the core e-commerce model proved challenging. The company is trying to build a more resilient 'gifting ecosystem,' which you can read more about in their Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS). The action here is to watch their variable contribution margin (VCM) and customer retention rates, not just the top-line revenue number, as they execute this strategy.

Profitability Metrics

You're looking at 1-800-FLOWERS.COM, Inc. (FLWS) to understand if the core business is generating cash, and the simple answer for the 2025 fiscal year is: not yet. The company's profitability metrics show a significant step backward, largely due to a promotional sales environment, fixed cost deleveraging on lower sales, and a substantial non-cash impairment charge. This is a turnaround story that is currently in the red.

For the full fiscal year 2025 (ended June 29, 2025), 1-800-FLOWERS.COM, Inc. reported a net loss of $200.0 million, a sharp increase from the $6.1 million net loss in fiscal 2024. This translates to deeply negative profit margins, which is the key takeaway for any investor right now. Here's the quick math on the core margins:

Gross Margin Holds, Operating Margin Crumbles

The 38.7% gross profit margin shows the company still maintains a decent markup on its products, which is the percentage of revenue remaining after subtracting the Cost of Goods Sold (COGS). Still, this was a decrease of 140 basis points from the prior year, driven by increased merchandise costs and the effect of spreading fixed costs over lower sales volume (deleveraging). What this estimate hides is the operational drag-the cost to actually run the business and sell the product.

The operating profit margin, which accounts for selling, general, and administrative expenses (SG&A), plummeted to -12.15%. This massive swing into negative territory is the result of a $143.8 million non-cash goodwill and intangible impairment charge, plus the effects of declining revenue. The company's Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a cleaner view of core operating cash flow, dropped significantly to $29.2 million in fiscal 2025, down from $93.1 million in 2024. That's a huge drop-off in operational efficiency.

Net Profit and Industry Comparison

The bottom line, or net profit margin, sits at -11.86%. This persistent unprofitability is a major red flag, especially when you look at the sector. While a direct industry average for net margin in e-commerce gifting is tough to pin down, the consensus is clear: 1-800-FLOWERS.COM, Inc. is struggling to turn a profit, with net margins failing to improve.

The market reflects this financial weakness. For context, the company's Price-To-Sales (P/S) ratio of 0.1x is substantially lower than the industry average of 0.4x and a peer average of 6.5x. The market is telling you it sees little value in each dollar of the company's $1.69 billion in revenue right now. The new management is focused on operational efficiency and a margin turnaround, but structural trends like higher digital marketing costs and supply pressure make it an uphill battle.

• Monitor the gross margin for stabilization above 38%.
• Watch for a positive operating margin, which signals the turnaround is working.
• Look for Adjusted EBITDA guidance to show a clear path back toward the $93.1 million level.

You can read more about the company's financial state in this full post: Breaking Down 1-800-FLOWERS.COM, Inc. (FLWS) Financial Health: Key Insights for Investors. Defintely track their next quarterly report to see if the operational improvements are taking hold.

Debt vs. Equity Structure

You need to know exactly how 1-800-FLOWERS.COM, Inc. (FLWS) funds its operations, and the short answer is that the company leans heavily on a balanced mix of long-term debt and shareholder equity, though its leverage has recently spiked. At the close of fiscal year 2025 (June 29, 2025), the company's total shareholder equity stood at $268.2 million, a foundational piece of its capital structure.

The company's reliance on debt financing is clear, but it's not out of line with its industry. The Debt-to-Equity (D/E) ratio for 1-800-FLOWERS.COM, Inc. is approximately 120.9% (or 1.21), meaning for every dollar of equity, the company uses about $1.21 in debt. Here's the quick math: The industry average for a related sector like Apparel Retail sits right around 1.2, so FLWS is operating at a comparable level of leverage. A D/E ratio between 1.0 and 1.5 is generally considered a healthy balance for capital-intensive retail businesses.

Still, the near-term trend is concerning. The company's net debt-total debt minus cash-increased sharply to $114 million at the end of fiscal 2025, a significant jump from $31 million a year prior. This increase points to a greater reliance on borrowed funds to cover operational needs and capital expenditures, especially given the reported net loss of $200 million for the year.

Debt Composition and Near-Term Actions

The company's debt is primarily structured as long-term obligations. At the fiscal 2025 year-end, the company reported $160 million in term debt, which is its core long-term borrowing. Short-term debt, which is often used for seasonal working capital needs, is managed through a revolving credit facility (a corporate credit card, essentially).

The use of this revolving credit facility gives us a concrete example of how they balance debt and equity financing:

• At the fiscal year-end (June 29, 2025), there were no borrowings under the revolving credit facility.
• In the first quarter of fiscal 2026 (October 2025), the company had already borrowed $110 million under the facility to prepare for the crucial holiday season.
• They expect to repay these revolver borrowings fully during the second fiscal quarter of 2026, which is standard practice for a seasonal retailer.

This seasonal debt cycle is normal, but the significant increase in net debt suggests a structural shift. Management is aware of the cost of this debt, as they have stated they will actively consider refinancing high-cost debt to improve the balance sheet. You should watch for any announcements on new bond issuances or credit facility renegotiations, as those will directly impact future interest expense and cash flow. For a deeper dive into the company's strategic direction, you can review their Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

Liquidity and Solvency

You're looking at 1-800-FLOWERS.COM, Inc. (FLWS) and wondering if they have the cash to manage their day-to-day business, especially with the economic headwinds we've seen. Honestly, the liquidity picture for fiscal year 2025 is tight, but not immediately catastrophic. The company's short-term financial health, or liquidity, rests on its ability to cover current obligations with current assets.

Here's the quick math on their core liquidity positions. As of the fiscal year ended June 29, 2025, the company reported Current Assets of $282.73 million and Current Liabilities of $221.39 million.

• The Current Ratio (Current Assets / Current Liabilities) is 1.28.
• The Quick Ratio (Acid-Test Ratio) is roughly 0.48.

A Current Ratio of 1.28 is acceptable; it means they have $1.28 in liquid assets for every dollar of short-term debt. But the Quick Ratio, which strips out inventory-a less liquid asset, especially for perishable goods like flowers and gourmet food-is only 0.48. That's the red flag. It tells you that without selling off a significant chunk of their $177.13 million in inventory, they can't cover their current liabilities. Inventory is defintely the biggest swing factor here.

The working capital (Current Assets minus Current Liabilities) for 1-800-FLOWERS.COM, Inc. in FY 2025 was $61.3 million, which is a sharp compression from prior years and increases their liquidity sensitivity. This trend, coupled with the low Quick Ratio, means the company is heavily reliant on quick inventory turnover and the seasonal cash flow from major holidays like Valentine's Day and Mother's Day to stay ahead of its bills. You should check out Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS) to see how their strategic focus aligns with their operational cash needs.

When you look at the Cash Flow Statement, the trends are concerning. The company's ability to generate cash from its core business, which is Cash Flow from Operating Activities (CFO), turned negative in FY 2025, coming in at $-26.36 million. This is a critical reversal from the prior year and signals that their operations are currently consuming cash, not generating it. This is a massive headwind for liquidity.

Here's a snapshot of the cash flow activities for the fiscal year ended June 29, 2025 (in millions USD):

The Investing Cash Flow of $-44.46 million was primarily driven by capital expenditures, which is normal for a business needing to maintain its fulfillment infrastructure. However, the Financing Cash Flow of $-42.11 million indicates a net outflow, meaning they were paying down debt or other obligations, which is a positive sign for long-term solvency, but it adds immediate pressure when operating cash is negative. The combination of negative cash flow from operations and continued investment/debt servicing led to a net decrease in cash of $112.94 million for the year, leaving them with an ending cash balance of $46.50 million.

The immediate liquidity strength is their Current Ratio, but the weakness is the low Quick Ratio and, more importantly, the negative operating cash flow. This means they're relying on external financing or asset sales to cover their cash burn, which is not sustainable. The clear action here is to monitor their Q1 2026 results to see if the management's cost-cutting and efficiency initiatives can flip that operating cash flow back to positive. Management: Report on Q1 2026 operating cash flow forecast by next Friday.

Valuation Analysis

You are looking at 1-800-FLOWERS.COM, Inc. (FLWS) and asking the right question: Is it a value trap or a deep-value opportunity? Based on the latest fiscal year data through November 2025, the market is signaling a clear undervaluation on a book-value basis, but the profitability metrics show significant near-term risk. The stock is cheap, but it's cheap for a reason.

The stock price has been hit hard, falling a substantial 59.10% over the last 12 months, with a recent closing price of approximately $3.09 as of November 21, 2025. The 52-week range of $2.93 to $9.17 shows the dramatic decline in investor sentiment. This kind of volatility is a red flag, but it also creates the potential for outsized gains if the turnaround plan works. You need to look past the price alone.

Key Valuation Multiples (Fiscal Year 2025)

Valuation multiples tell a mixed story, which is typical for a company in a challenging turnaround phase. Here's the quick math on the Trailing Twelve Months (TTM) figures:

• Price-to-Book (P/B): The P/B ratio is a low 0.91. This is the clearest signal of potential undervaluation, suggesting the market values the company at less than its net asset value (what shareholders would theoretically get if the company liquidated its assets and paid off all liabilities).
• Price-to-Earnings (P/E): The TTM P/E ratio is effectively N/A or negative because the company reported a Diluted Earnings Per Share (EPS) of -$3.44 TTM. A negative P/E means the company is currently unprofitable, so this metric is useless for comparison right now.
• Enterprise Value-to-EBITDA (EV/EBITDA): The TTM EV/EBITDA is reported at 11.43. What this estimate hides is that the TTM Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is actually negative at -$5.03 million, which complicates the interpretation of this multiple. A positive EV/EBITDA figure in this context likely relies on a forward-looking or adjusted EBITDA that excludes non-recurring costs.

The low P/B of 0.91 is a strong value indicator. The negative earnings, however, mean you are buying a turnaround story, not a stable cash-flow generator. The lack of a dividend-the yield is 0.00% as of November 2025-confirms the focus is on conserving cash for operations, not returning capital to shareholders.

Analyst Consensus and Forward View

The institutional view is cautious but not entirely bearish. The consensus recommendation from analysts is currently a Hold, with a consensus price target of $6.00. This target implies a significant upside of nearly 94% from the current price of $3.09, suggesting analysts believe the stock should trade closer to its historical average once profitability stabilizes. To be fair, some technical models have flagged the stock as a 'Strong Sell' candidate, reflecting the recent momentum and trend breakdown.

Your action item here is clear: The $6.00 price target is your benchmark for a successful turnaround. If you see sustained improvement in gross margins and a return to positive TTM EPS in the next two quarters, that target is defintely achievable. For a deeper dive into who is buying the dip, you should check out Exploring 1-800-FLOWERS.COM, Inc. (FLWS) Investor Profile: Who's Buying and Why?

Next Step: Re-run a discounted cash flow (DCF) model using a conservative 2026 EBITDA forecast that is at least $20 million to see if the implied fair value supports the $6.00 consensus target.

Risk Factors

You're looking at 1-800-FLOWERS.COM, Inc. (FLWS) and seeing a company in the middle of a significant turnaround, but you need to map the risks that could derail it. The direct takeaway is this: the biggest near-term risks are operational execution and a continued squeeze on the consumer's discretionary spending, both of which hammered the company's bottom line in fiscal year 2025.

Honesty, the numbers from the fiscal year 2025 10-K and earnings calls paint a clear picture of the challenge. Consolidated revenue dropped by a significant 8.0% to $1,685.7 million, and the net loss widened dramatically to $200.0 million, up from a loss of $6.1 million in the prior year. That's a massive swing, and it tells you the internal and external pressures are very real. Exploring 1-800-FLOWERS.COM, Inc. (FLWS) Investor Profile: Who's Buying and Why?

Operational and Financial Execution Risks

The most immediate and concerning risks are centered on the company's internal operations and financial stability. A key issue was the botched implementation of a new Order Management System (OMS) for Harry & David, which management admitted led to an estimated $20 million in lost sales and an additional $11 million in extra costs. That's a colossal operational misstep.

On the financial side, the balance sheet is showing strain. Net debt ballooned to $114 million at the end of fiscal 2025, a sharp increase from $31 million a year prior. Plus, with the Federal Reserve keeping rates elevated, the company is exposed to interest rate risk; a simple 50 basis point hike in current interest rates would have increased their interest expense by approximately $1.0 million in fiscal 2025. This is a business that needs to generate cash flow, and fast.

• Operational Execution: OMS issues cost $20M in sales.
• Debt Load: Net debt is up $83M year-over-year.
• Profitability: Full-year Adjusted EBITDA fell to $29.2 million from $93.1 million.

External and Strategic Headwinds

Externally, 1-800-FLOWERS.COM, Inc. is navigating a tough macro environment where consumers are pulling back on discretionary spending, like flowers and gourmet gifts. This is compounded by intense industry competition, which is forcing a highly promotional sales environment and squeezing gross margins. The full-year gross margin (excluding one-time costs) dropped by 100 basis points to 39.1%. Less money per sale means less cushion.

Also, the digital marketing landscape is a minefield. The company noted that traditional Search Engine Optimization (SEO) continues to decline, and their bottom-of-the-funnel marketing investments didn't yield the expected results. They are defintely struggling to acquire new customers efficiently, which is why the customer count fell in line with the revenue decline, ending the year with 9.5 million customers. Another external factor is the tariff headwind, which remains a cost pressure, though mitigation efforts have reduced the exposure from an earlier high of $55 million to about $15 million today.

Mitigation Strategies and Clear Actions

Management is not sitting still, which is the good news. They have launched a comprehensive cost reduction plan aimed at achieving approximately $40 million in annualized savings, with $17 million already implemented in fiscal 2025. That's a solid start.

Strategically, they are shifting their focus from simply chasing top-line revenue to prioritizing a better marketing contribution margin (MCM), a fancy term for making sure each dollar spent on marketing brings in more profit than it costs. They are also expanding their reach beyond their own e-commerce sites into third-party marketplaces like Amazon and Walmart.com, which is a smart move to diversify their customer acquisition channels.

Here's the quick math on the cost savings plan:

Growth Opportunities

You're looking at 1-800-FLOWERS.COM, Inc. (FLWS) and wondering if the recent financial struggles are a blip or a trend. My take: the company is undergoing a necessary, painful pivot, but their core assets give them a clear path to stabilization and eventual growth. The near-term is about execution risk, but the long-term opportunity hinges on their new, data-driven strategy.

In Fiscal Year 2025, the company reported total consolidated revenues of $1.69 Billion, an 8.0% year-over-year decline, and an Adjusted Net Loss of ($52.5) million, or ($0.82) per share. This is a tough starting point. However, management is now focused on a multi-year turnaround, which they call the 'Celebrations Wave' strategy, centered on efficiency and a smarter customer focus. The next year, Fiscal Year 2026, is explicitly viewed as a 'pivotal period of foundation setting.'

Key Growth Drivers and Strategic Initiatives

The new strategy is a four-pronged attack to stabilize the business and drive profitable growth, moving away from a reliance on costly, bottom-of-the-funnel marketing. They are defintely moving to a more sophisticated, data-driven approach.

• Cost & Efficiency: They are targeting an additional $50 million in gross cost savings over the next two fiscal years, building on the $17 million in annualized savings already implemented in Fiscal Year 2025. This includes centralizing procurement across their brands to leverage scale.
• Customer Focus: The push is to become a truly customer-centric, data-driven organization. This involves modernizing the digital experience and enhancing the merchandising strategy using stronger data infrastructure and Artificial Intelligence (AI) for better personalization.
• Channel Expansion: They are actively broadening their reach beyond their proprietary e-commerce sites by expanding sales into major third-party marketplaces like Amazon and walmart.com. This is a smart move to capture new customers without the full cost of direct acquisition.
• Product Innovation: Recent moves include the acquisition of Card Aisle and the expansion of bundled offerings, such as the Valentine's Day "Trios." They are also leveraging their BloomNet network for a new same-day delivery program, which is crucial for competing in the instant-gratification e-commerce world.

Future Financial Projections

The market is expecting a very modest rebound in the near-term, reflecting the 'foundation setting' nature of the current fiscal year. Here's the quick math on the analyst consensus for the next full fiscal year, which is a good baseline for your model:

What this estimate hides is the potential for a larger, more profitable recovery if the $50 million in cost savings hits the bottom line effectively and the new AI-driven marketing strategy significantly improves their marketing contribution margin (MCM). The current projection implies a continued loss, but a much smaller one, suggesting the cost and efficiency initiatives are starting to take hold.

Competitive Advantages

The company's biggest asset is its deep moat in the gifting ecosystem, which is difficult for a pure-play competitor to replicate. It's not just a flower company; it's a portfolio of gifting brands.

• Diversified Brand Portfolio: The company owns a family of strong brands beyond the core floral business, including Harry & David, Cheryl's Cookies, and Shari's Berries. This diversification insulates them from volatility in any single category.
• Brand Recognition & Loyalty: They have a high brand awareness of 78% in the gifting market. More importantly, 74% of their Fiscal Year 2025 revenue came from existing customers, with a repeat customer percentage of 42.6%. This loyal base is the engine for future profitability.
• BloomNet Network: Their proprietary B2B BloomNet segment provides a crucial logistical advantage, connecting them with local florists to facilitate same-day delivery and support their omnichannel retail strategy.

For a deeper dive into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

Next Step: Portfolio Manager: Adjust your valuation model to incorporate the $50 million in projected cost savings and run a sensitivity analysis on the impact of a 200 basis point improvement in marketing contribution margin from the new AI-driven strategy.