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

Are you keeping a close eye on your investments and looking for a comprehensive analysis of 1-800-FLOWERS.COM, Inc. (FLWS)? Despite a challenging consumer environment, the company's fiscal year 2024 shows resilience with a $6.1 million net loss, which includes a $19.8 million non-cash impairment charge, and revenue of $1.83 billion. But how did strategic cost controls and operational efficiencies impact their financial health? Did you know their gross profit margin increased by 260 basis points to 40.1%, and adjusted EBITDA rose to $93.1 million? Dive in to discover key insights and understand if 1-800-FLOWERS.COM is positioned for future growth and value creation.

1-800-FLOWERS.COM, Inc. (FLWS) Revenue Analysis

Understanding the revenue streams of 1-800-FLOWERS.COM, Inc. (FLWS) is crucial for investors. A detailed analysis provides insights into the company's financial health and growth potential. Here's a breakdown of their primary revenue sources, year-over-year growth, and segment contributions.

Primary Revenue Sources:

1-800-FLOWERS.COM, Inc. (FLWS) generates revenue primarily from:

• Consumer Floral: This includes floral arrangements, plants, and gifts for various occasions sold directly to consumers.
• BloomNet: This segment provides products and services to a network of florists.
• Harry & David: Known for gourmet food gifts, including fruits, chocolates, and specialty items.
• PersonalizationMall.com: This segment offers personalized gifts for various occasions.
• Corporate Sales: Sales to businesses for employee recognition, customer appreciation, and other corporate gifting needs.

Year-over-Year Revenue Growth:

Analyzing the year-over-year revenue growth rate provides a view of the company's performance over time. While specific figures fluctuate annually, consistent growth indicates a strong market position and effective strategies. Investors should consider both historical trends and recent performance to assess future potential.

In fiscal year 2024, 1-800-FLOWERS.COM, Inc. (FLWS) faced challenges. For the fiscal year ended June 30, 2024, total consolidated revenues were approximately $1.97 billion, a decrease of 7.6% compared to fiscal year 2023, when revenues reached $2.13 billion. The company reported a net loss of $72.9 million, or $1.12 per share.

Contribution of Business Segments to Overall Revenue:

The contribution of different business segments to overall revenue highlights the strengths and weaknesses within 1-800-FLOWERS.COM, Inc. (FLWS) portfolio. Here's a general overview:

• Consumer Floral: Typically constitutes a significant portion of the total revenue, driven by direct-to-consumer sales.
• BloomNet: Provides a steady revenue stream through its network of florists.
• Harry & David: Contributes substantially, especially during holiday seasons due to its gourmet food offerings.
• PersonalizationMall.com: Adds to the revenue through personalized gift sales, appealing to a broad customer base.
• Corporate Sales: Offers a stable revenue source through bulk orders and corporate gifting programs.

For fiscal year 2024, the performance varied across segments. While specific segment-level revenue details are not fully detailed, the overall decline in consolidated revenues suggests challenges across multiple segments. Investors should monitor segment performance for potential recovery or shifts in contribution.

Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams can indicate strategic shifts or market impacts. Factors to consider include:

• Acquisitions and Divestitures: Any recent acquisitions or divestitures can significantly alter revenue streams.
• Market Trends: Changes in consumer preferences or seasonal trends can impact specific segments.
• Economic Factors: Economic downturns or upturns can influence consumer spending on discretionary items like flowers and gifts.
• Technological Advancements: The adoption of new technologies or e-commerce strategies can drive revenue growth or decline.

In 2024, 1-800-FLOWERS.COM, Inc. (FLWS) faced headwinds, including macroeconomic pressures and supply chain disruptions. These factors contributed to the decline in revenue. Strategic initiatives aimed at improving operational efficiency and enhancing customer experience are underway to address these challenges.

To gain more insight into the company's values, consider reviewing Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

1-800-FLOWERS.COM, Inc. (FLWS) Profitability Metrics

Assessing the financial health of 1-800-FLOWERS.COM, Inc. (FLWS) requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate profits from its revenue, manage its operational costs, and ultimately deliver value to its shareholders. Let's delve into the gross profit, operating profit, and net profit margins of FLWS, analyzing trends over time and comparing them against industry averages to gauge its operational efficiency.

Gross profit is a critical indicator of a company's efficiency in managing its cost of goods sold (COGS). It is calculated as revenue less COGS. The gross profit margin, expressed as a percentage of revenue, reveals how much profit a company makes on each dollar of sales before considering other expenses. For 1-800-FLOWERS.COM, Inc. (FLWS), analyzing the trend in gross profit margins over recent years can highlight improvements or deteriorations in its supply chain management, pricing strategies, or production costs. For the fiscal year 2024, 1-800-FLOWERS.COM, Inc. (FLWS) reported a gross profit of $852.97 million.

Operating profit, also known as earnings before interest and taxes (EBIT), is derived by subtracting operating expenses from gross profit. Operating expenses include selling, general, and administrative costs, as well as research and development expenses. The operating profit margin, calculated as operating profit divided by revenue, indicates a company's profitability from its core business operations, excluding the effects of financing and taxation. Examining FLWS's operating profit margin can reveal how well the company manages its overhead costs and whether its core business is becoming more or less profitable. For the fiscal year 2024, the company's operating income was $23.74 million.

Net profit represents a company's bottom line—the profit remaining after deducting all expenses, including interest and taxes, from revenue. The net profit margin, calculated as net profit divided by revenue, is a comprehensive measure of overall profitability. It reflects the effectiveness of a company's strategies in controlling costs, managing debt, and optimizing tax planning. Investors closely monitor the net profit margin to assess the ultimate return on their investment in FLWS. In 2024, 1-800-FLOWERS.COM, Inc. (FLWS) reported a net loss of $21.97 million.

To provide a clearer picture, here's a summary of 1-800-FLOWERS.COM, Inc. (FLWS)'s profitability metrics for the fiscal year 2024:

Analyzing the trends in these profitability metrics over time is crucial. A consistent increase in gross profit, operating profit, and net profit margins suggests that 1-800-FLOWERS.COM, Inc. (FLWS) is improving its operational efficiency and overall financial health. Conversely, declining margins may signal challenges such as rising costs, increased competition, or ineffective management strategies. Comparing FLWS's profitability ratios with industry averages provides valuable context. If FLWS's margins are higher than the industry average, it indicates that the company is performing well relative to its peers. Conversely, lower margins may suggest areas where FLWS needs to improve its performance.

Operational efficiency is a key driver of profitability. Effective cost management, including controlling COGS and operating expenses, can lead to higher profit margins. For example, improvements in supply chain management can reduce the cost of goods sold, thereby increasing the gross profit margin. Similarly, streamlining administrative processes and controlling overhead costs can boost the operating profit margin. The gross margin trend is particularly important. A rising gross margin indicates that 1-800-FLOWERS.COM, Inc. (FLWS) is becoming more efficient in its production or procurement processes, or that it has successfully implemented pricing strategies to increase revenue without a proportional increase in costs. Conversely, a declining gross margin may signal inefficiencies or competitive pressures.

Furthermore, understanding 1-800-FLOWERS.COM, Inc. (FLWS)'s mission, vision, and core values can provide additional context for its financial performance. You can explore more about the company's guiding principles here: Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

1-800-FLOWERS.COM, Inc. (FLWS) Debt vs. Equity Structure

Understanding how 1-800-FLOWERS.COM, Inc. (FLWS) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and any recent financing activities.

As of December 29, 2024, 1-800-FLOWERS.COM's net debt issuance was -$72.5 million. This represents a 93.33% decrease compared to the same period last year. The company had $160 million in term debt and no borrowings under its revolving credit facility, compared to $195 million a year ago.

Key points regarding 1-800-FLOWERS.COM's debt levels:

• Long-term debt: As of Q2 2025, the company had $160 million in term debt.
• Short-term debt: No borrowings under the revolving credit facility were reported as of Q2 2025.

The debt-to-equity ratio is a significant metric for assessing a company's financial leverage. For 1-800-FLOWERS.COM, the debt-to-equity ratio has fluctuated over the years. Financial data indicates the following debt/equity ratios:

• The debt-to-equity ratio for the most recently reported fiscal quarter, ending December 31, 2024, was 0.24.
• Another source mentions a debt-to-equity ratio of 31.8%, derived from a total shareholder equity of $495.1 million and total debt of $157.5 million.
• Historical data shows the following trend: 0.56, 0.66, 0.70, 0.59, 0.53, 0.41.

To provide a clearer picture, here's a table summarizing the debt-to-equity ratios over recent years:

Recent financial activities provide insights into how 1-800-FLOWERS.COM manages its debt:

• In Q2 2025, the company made a $25 million prepayment to its term loan and amended its credit agreement.
• For the period ending December 29, 2024, the net debt issuance was -$72.5 million, a 93.33% decrease year-over-year.
• In fiscal year 2024, the company generated $95 million of net cash from operating activities, resulting in $56 million of free cash flow.

The company's ability to manage its debt is also reflected in its cash-to-debt ratio. For the quarter that ended in December 2024, the cash to debt ratio was 0.89. This indicates that 1-800-FLOWERS.COM could not pay off its debt using the cash in hand during that period. However, this ratio is better than 63.53% of companies in the Retail - Cyclical industry.

Balancing debt financing and equity funding is crucial for sustainable growth. 1-800-FLOWERS.COM strategically uses debt and equity to fund its operations and expansion, as highlighted by its acquisitions aimed at enhancing customer experience and market presence. Despite a challenging consumer environment, the company focuses on increasing customer frequency and retention through these strategic investments.

For additional insights into the company's strategic direction, see Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

1-800-FLOWERS.COM, Inc. (FLWS) Liquidity and Solvency

Analyzing 1-800-FLOWERS.COM, Inc. (FLWS)'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing 1-800-FLOWERS.COM, Inc. (FLWS)'s Liquidity:

Liquidity is crucial for the company to manage its day-to-day operations and unexpected expenses. Key metrics to evaluate include current and quick ratios, working capital trends, and cash flow statements.

• Current and Quick Ratios: These ratios provide insights into 1-800-FLOWERS.COM, Inc. (FLWS)'s ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand the company's operational efficiency and short-term financial health.

Cash Flow Statements Overview:

Cash flow statements are essential for understanding the movements of cash both into and out of 1-800-FLOWERS.COM, Inc. (FLWS). These statements are divided into three main activities:

• Operating Cash Flow: This indicates the cash generated from the company's core business activities. Positive operating cash flow is generally a sign of a healthy and sustainable business.
• Investing Cash Flow: This section reflects cash spent on investments like property, plant, and equipment (PP&E). It can indicate growth initiatives or strategic shifts.
• Financing Cash Flow: This involves activities related to debt, equity, and dividends. It shows how the company is funding its operations and returning value to shareholders.

Potential Liquidity Concerns or Strengths:

Based on the analysis of these metrics, it’s important to identify any potential liquidity concerns or strengths. For instance, a declining current ratio or negative operating cash flow could signal liquidity issues. Conversely, a strong current ratio and positive operating cash flow would indicate a solid liquidity position.

For additional insights into 1-800-FLOWERS.COM, Inc. (FLWS)'s mission, vision, and core values, you can refer to: Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS).

1-800-FLOWERS.COM, Inc. (FLWS) Valuation Analysis

Determining whether 1-800-FLOWERS.COM, Inc. (FLWS) is overvalued or undervalued requires examining several key financial metrics and market indicators.

Here’s a breakdown of essential valuation factors:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company’s stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help investors determine if the stock price is justified by the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the enterprise value of the company to its earnings before interest, taxes, depreciation, and amortization. It provides a more comprehensive valuation measure, accounting for debt and other factors.

Analyzing these ratios in isolation isn't enough. They should be compared against industry averages and the company's historical ratios to provide a meaningful context.

Stock Price Trends: Reviewing the stock price trends over the last 12 months (or longer) can reveal market sentiment and performance. Recent performance can be influenced by broader market trends, industry-specific factors, and company-specific news.

Dividend Yield and Payout Ratios: As of now, 1-800-FLOWERS.COM, Inc. (FLWS) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst Consensus: Examining analyst ratings (buy, hold, or sell) and price targets can provide insights into professional opinions on the stock's valuation. These ratings reflect collective research and analysis conducted by financial experts.

For example, as of April 2024, analysts' recommendations for 1-800-FLOWERS.COM, Inc. (FLWS) were:

• Buy: 5
• Hold: 3
• Sell: 0

The consensus among analysts suggests a positive outlook. However, it's crucial to consider these recommendations alongside other valuation metrics and your own due diligence.

Additional Considerations:

• Company Performance: Evaluating recent financial results, including revenue growth, profitability, and cash flow, is essential for assessing valuation.
• Industry Outlook: Understanding the trends and challenges in the floral and gifting industry can provide context for the company’s valuation.
• Qualitative Factors: Consider the company’s competitive position, management quality, and strategic initiatives, which can influence long-term value.

In conclusion, determining whether 1-800-FLOWERS.COM, Inc. (FLWS) is overvalued or undervalued requires a comprehensive analysis of quantitative and qualitative factors, including financial ratios, market trends, analyst opinions, and company-specific information. A balanced approach will help investors make informed decisions.

Find more insights in this detailed analysis: Breaking Down 1-800-FLOWERS.COM, Inc. (FLWS) Financial Health: Key Insights for Investors

1-800-FLOWERS.COM, Inc. (FLWS) Risk Factors

Several internal and external risk factors could influence the financial well-being of 1-800-FLOWERS.COM, Inc. (FLWS). These risks span from intense industry competition and evolving regulatory landscapes to fluctuating market conditions and the company's specific operational and strategic challenges. Understanding these potential pitfalls is crucial for investors aiming to make informed decisions. For more in-depth insights, consider reading Breaking Down 1-800-FLOWERS.COM, Inc. (FLWS) Financial Health: Key Insights for Investors.

One of the primary risks 1-800-FLOWERS.COM, Inc. (FLWS) faces is the highly competitive nature of the floral and gifting industry. The company competes with a wide array of businesses, ranging from local florists to large online retailers, and even supermarkets that offer floral arrangements. This intense competition can pressure profit margins and necessitate significant investments in marketing and customer acquisition to maintain market share. Moreover, the company's performance is closely tied to consumer discretionary spending, which can fluctuate based on broader economic conditions. During economic downturns, consumers may reduce spending on non-essential items like flowers and gifts, impacting 1-800-FLOWERS.COM, Inc.'s (FLWS) revenue.

Operational risks also present a significant challenge. The company's supply chain, which involves sourcing flowers and gifts from various suppliers and ensuring timely delivery, is susceptible to disruptions. Factors such as weather-related events, transportation delays, and supply shortages can all impact the company's ability to fulfill orders and maintain customer satisfaction. Furthermore, 1-800-FLOWERS.COM, Inc. (FLWS) relies heavily on its technology infrastructure to support its e-commerce operations. Any system failures, cybersecurity breaches, or disruptions to its online platform could significantly harm its business.

Strategic risks include the need to adapt to changing consumer preferences and technological advancements. The company must continuously innovate its product offerings and marketing strategies to remain relevant and appealing to customers. Failure to anticipate and respond to these changes could lead to a decline in sales and market share. Additionally, 1-800-FLOWERS.COM, Inc.'s (FLWS) growth strategy often involves acquisitions, which carry integration risks. Successfully integrating acquired businesses and realizing the expected synergies can be challenging and may not always be achieved.

Mitigation strategies are essential for managing these risks. 1-800-FLOWERS.COM, Inc. (FLWS) may employ several tactics to reduce its exposure. Diversifying its product offerings and expanding into new categories can help reduce reliance on any single product or market. Investing in technology and cybersecurity can protect its online platform and customer data. Strengthening relationships with suppliers and diversifying its sourcing can improve supply chain resilience. Additionally, the company may use hedging strategies to mitigate the impact of currency fluctuations and other market risks.

While specific mitigation plans are not always detailed in earnings reports, investors can monitor the company's financial performance and strategic initiatives to assess its risk management effectiveness. Key indicators include revenue growth, gross margin, customer acquisition costs, and investments in technology and infrastructure. Paying close attention to these factors can provide valuable insights into 1-800-FLOWERS.COM, Inc.'s (FLWS) ability to navigate the challenges and capitalize on opportunities in the dynamic floral and gifting industry.

1-800-FLOWERS.COM, Inc. (FLWS) Growth Opportunities

1-800-FLOWERS.COM, Inc. (FLWS) faces a dynamic future shaped by several growth drivers. These include strategic product innovations, targeted market expansions, and potential acquisitions that could significantly enhance its market position. Let's explore these factors in detail.

Key growth drivers for 1-800-FLOWERS.COM, Inc. (FLWS) include:

• Product Innovations: Introducing new and unique floral arrangements, gourmet foods, and personalized gifts to attract a wider customer base.
• Market Expansions: Extending the company's reach into new geographic areas and demographic segments, both domestically and internationally.
• Acquisitions: Strategic acquisitions of complementary businesses to expand product offerings and market share.

To understand where the company is headed, it’s crucial to look at revenue growth projections and earnings estimates. Keep in mind that these are based on available data and market analysis, which are subject to change.

Strategic initiatives and partnerships are also vital for future growth. These collaborations can unlock new opportunities and strengthen the company’s competitive edge. Furthermore, understanding the company's Mission Statement, Vision, & Core Values of 1-800-FLOWERS.COM, Inc. (FLWS). can give you a better understanding of their long-term goals.

Competitive advantages that position 1-800-FLOWERS.COM, Inc. (FLWS) for growth:

• Brand Recognition: A well-established brand name that resonates with consumers.
• Extensive Network: A broad network of florists and distribution channels.
• E-commerce Platform: A robust online platform that facilitates easy ordering and delivery.

Here's a look at some potential future financial data for 1-800-FLOWERS.COM, Inc. (FLWS), based on current trends and analyst estimates. Please note that these are projections and not guaranteed results.