1-800-Flowers.com Reports 12.6% Revenue Decline and $178.2 Million Net Loss in Q3 Fiscal 2025

1-800-Flowers.com, Inc. reported a significant decline in financial performance for the third quarter of fiscal 2025, with net revenues of $331.5 million, down 12.6% from $379.4 million in the same period last year. For the nine months ending March 30, 2025, revenues also fell by 8.3% to $1.35 billion compared to $1.47 billion in the prior year. The company attributed this decline to reduced consumer discretionary spending and a highly promotional environment, particularly during key gifting occasions like Valentine's Day. The gross profit for the quarter was $105 million, a decrease of 24.3% year-over-year, reflecting a gross profit margin of 31.7%, down from 36.6% in the previous year.

The company faced a substantial non-cash impairment charge of $138.2 million during the quarter, primarily related to goodwill and intangible assets in its Consumer Floral & Gifts segment. This impairment was driven by a decline in market capitalization and unfavorable macroeconomic conditions. As a result, the company reported a net loss of $178.2 million for the quarter, compared to a loss of $16.9 million in the same quarter last year. The basic net loss per share was $(2.80), a significant drop from $(0.26) in the prior year.

In terms of operational metrics, 1-800-Flowers.com fulfilled approximately 3.7 million orders during the quarter, a decrease of 14.2% year-over-year. The average order value remained relatively stable at $79.38, while the company’s e-commerce revenues, which include online and telephonic sales, decreased by 14.2% for the quarter and 9.8% for the nine-month period. The company also reported a decrease in customer engagement, with a notable decline in orders across its segments.

Strategically, 1-800-Flowers.com has made recent acquisitions, including Scharffen Berger and Card Isle, to expand its product offerings. The company is also implementing a new initiative called Celebrations Wave, aimed at transforming the customer experience and optimizing operations. This initiative may incur restructuring costs between $10 million and $15 million over the next year. However, due to the uncertain macroeconomic environment, the company has withdrawn its near-term guidance, focusing instead on executing its long-term strategic plans.

Looking ahead, 1-800-Flowers.com is navigating a challenging landscape marked by fluctuating consumer confidence and inflationary pressures. The company is exploring alternative sourcing options to mitigate tariff impacts and is committed to enhancing its operational efficiency. Despite the current challenges, management remains focused on positioning the company for sustainable growth in the future.