On August 29, 2024, 1-800-Flowers.com Inc (FLWS, Financial) released its 8-K filing detailing its fiscal 2024 fourth quarter and year-end results. The company, a leading provider of gifts designed to help customers express, connect, and celebrate, reported a fiscal year 2024 revenue of $1.83 billion and a net loss of $6.1 million, which includes a non-cash impairment charge of $19.8 million recorded in the second quarter.
Company Overview
1-800-Flowers.com Inc is a provider of gifts designed to help customers express, connect, and celebrate. The company's e-commerce business platform features a variety of brands, including 1-800-Flowers.com, 1-800-Baskets.com, Cheryl's Cookies, Harry and David, PersonalizationMall.com, Shari's Berries, FruitBouquets.com, Moose Munch, The Popcorn Factory, Wolferman's Bakery, Stock Yards, and Simply Chocolate. Through the Celebrations Passport loyalty program, which provides members with free standard shipping and no service charge across its portfolio of brands, the firm strives to deepen relationships with customers. The company also operates BloomNet, an international floral and gift industry service provider; Napco, a resource for floral gifts and seasonal decor; and DesignPac Gifts, LLC.
Performance and Challenges
1-800-Flowers.com Inc faced a dynamic consumer environment that impacted discretionary consumer spending, especially among lower-income households. Despite these challenges, the company managed to grow its year-over-year adjusted EBITDA, benefiting from significant gross margin recovery and expense optimization efforts that more than offset the top-line decline.
Jim McCann, Chairman and CEO of 1-800-Flowers.com Inc, stated,
“During Fiscal 2024, through our Relationship Innovation initiatives, we significantly enhanced our gifting platform, including category expansion, broadening our price points, increasing our assortment of gifts available for same-day delivery, and enhancing the user experience. We also experienced a significant recovery in our gross profit margin, which benefitted from a reversion to the mean on a number of commodity costs combined with our Work Smarter initiatives to operate more efficiently.”
Financial Achievements
For fiscal year 2024, 1-800-Flowers.com Inc reported a gross profit margin increase of 260 basis points to 40.1%, and an adjusted EBITDA increase to $93.1 million. These achievements are crucial for the company as they indicate improved operational efficiency and cost management, which are vital in the retail-cyclical industry.
Key Financial Metrics
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Total Revenue | $1.83 billion | $2.02 billion |
| Net Loss | $(6.1) million | $(44.7) million |
| Gross Profit Margin | 40.1% | 37.5% |
| Adjusted EBITDA | $93.1 million | $91.2 million |
Income Statement Highlights
For the fiscal year ended June 30, 2024, 1-800-Flowers.com Inc reported total net revenues of $1.83 billion, a decrease from $2.02 billion in the prior year. The gross profit for the year was $734.8 million, down from $757.5 million in fiscal 2023. Operating expenses totaled $736.8 million, resulting in an operating loss of $2.1 million, a significant improvement from the $35.0 million operating loss in the previous year.
Balance Sheet and Cash Flow
As of June 30, 2024, the company reported total assets of $1.03 billion, slightly down from $1.05 billion in the previous year. Cash and cash equivalents increased to $159.4 million from $126.8 million. Net cash provided by operating activities was $95.0 million, compared to $115.4 million in the prior year.
Segment Results
For the full fiscal year, the Consumer Floral & Gifts segment reported revenues of $849.8 million, a decrease of 7.7% from the prior year. The BloomNet segment saw revenues decrease by 19.1% to $107.8 million, while the Gourmet Foods & Gift Baskets segment reported a 9.4% decline in revenues to $874.3 million.
Analysis
1-800-Flowers.com Inc's fiscal 2024 results reflect the challenges posed by a dynamic consumer environment and reduced discretionary spending. However, the company's efforts in enhancing its gifting platform and optimizing expenses have led to improved gross profit margins and adjusted EBITDA. The company's focus on Relationship Innovation initiatives and cost management strategies will be crucial as it navigates the uncertain consumer environment in fiscal 2025.
For more detailed financial information, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from 1-800-Flowers.com Inc for further details.
