1-800-FLOWERS.COM Reports 10.8% Revenue Decline and $134.8 Million Net Loss in Fiscal Year 2026

1-800-FLOWERS.COM, Inc. reported a challenging fiscal year 2026, with net revenues declining by $182.1 million, or 10.8%, to $1.5 billion compared to the previous year. This decrease was attributed to a strategic shift prioritizing marketing effectiveness and profitability over immediate revenue growth, despite a slight increase in wholesale volume. The company's gross margin also fell to 38.0%, a 70-basis point decrease from fiscal 2025, primarily due to the impact of lower sales and operational inefficiencies.

The company recorded a net loss of $134.8 million for fiscal 2026, an improvement from the $200 million loss in fiscal 2025. Adjusted EBITDA decreased to $2.9 million from $29.2 million in the prior year, reflecting the challenges faced in sales and gross margin. Notably, the company recognized a non-cash goodwill and intangible impairment charge of $45.2 million, primarily related to its Consumer Floral & Gifts segment, which has been under pressure due to changing consumer preferences and economic conditions.

Strategically, 1-800-FLOWERS.COM expanded its product offerings through acquisitions, including Card Isle, an e-commerce greeting card company, and Scharffen Berger, a premium chocolate manufacturer, both completed in 2024. These acquisitions are expected to enhance the company's presence in the greeting card and gourmet food markets, respectively. The company also reported a customer base of approximately 0.8 million Celebrations Passport members, who represent a significant portion of its revenue, spending an average of 2x to 3x more than other customers.

Operationally, the company faced a decline in customer engagement, with total order volume dropping to 14.3 million, a decrease of 17.6% year-over-year. However, the average order value increased by 5.5% to $89.23, indicating that while fewer customers were ordering, those who did were spending more. The company continues to focus on enhancing its technology infrastructure and marketing strategies to improve customer experience and retention.

Looking ahead, 1-800-FLOWERS.COM aims to leverage its acquisitions and improve operational efficiencies to drive future growth. The company anticipates borrowing under its revolving credit facility to support pre-holiday inventory purchases, with plans to repay these borrowings by the end of the second quarter of fiscal 2027. Despite the challenges faced in fiscal 2026, the company remains committed to its long-term strategy of becoming a leading authority in thoughtful gifting and enhancing customer relationships through its diverse product offerings.