1-800-Flowers.com Reports 11.1% Revenue Decline and Increased Net Loss in Q1 Fiscal 2026

1-800-Flowers.com, Inc. reported a decline in financial performance for the first quarter of fiscal 2026, ending September 28, 2025. The company recorded net revenues of $215.2 million, a decrease of 11.1% from $242.1 million in the same period last year. The gross profit also fell by 16.9% to $76.8 million, down from $92.3 million, resulting in a gross profit margin of 35.7%, compared to 38.1% in the prior year. The company experienced a net loss of $52.9 million, or $0.83 per share, compared to a net loss of $34.2 million, or $0.53 per share, in the previous year.

The decline in revenue was attributed to a strategic shift prioritizing marketing effectiveness and profitability over immediate revenue growth, alongside changes in wholesale order timing. The Consumer Floral & Gifts segment saw a 14.6% drop in revenue, while the Gourmet Foods & Gift Baskets segment experienced an 8.6% decrease. The BloomNet segment, however, reported a slight increase of 0.2% in revenues. The company fulfilled approximately 2.1 million orders through its e-commerce channels, a decrease of 14.4% year-over-year, although the average order value increased by 2.2% to $79.98.

In terms of operational metrics, the company’s total current assets rose to $358.2 million from $282.7 million, driven by an increase in inventories, which grew to $269.8 million from $177.1 million. Current liabilities also increased significantly, reaching $346.4 million compared to $221.4 million in the previous quarter, primarily due to a rise in current maturities of long-term debt. The company’s total liabilities increased to $623.0 million from $504.3 million, while stockholders' equity decreased to $217.5 million from $268.3 million.

Strategically, 1-800-Flowers.com completed the acquisition of the Scharffen Berger brand on July 1, 2024, for $3.3 million, enhancing its Gourmet Foods & Gift Baskets segment. The company is focusing on becoming a customer-centric, data-driven organization, with plans to drive cost savings, broaden its market reach, and strengthen its team. The company anticipates that the upcoming holiday season will generate over 40% of its annual revenues, which is critical for its financial recovery.

Looking ahead, the company aims to leverage its operational platform to improve profitability and manage working capital more effectively. While it believes its current liquidity sources will meet operational needs for the next twelve months, it acknowledges the uncertainty surrounding future cash flows and market conditions. The company remains committed to evaluating potential acquisitions and investments to enhance its business model and drive future growth.