1-800-Flowers.com Reports 9.5% Revenue Decline in Q2 Fiscal 2026

1-800-Flowers.com, Inc. reported a decline in financial performance for the second quarter of fiscal 2026, with net revenues of $702.2 million, down 9.5% from $775.5 million in the same period last year. For the six months ended December 28, 2025, revenues also decreased by 9.8% to $917.4 million compared to $1.02 billion in the prior year. The company attributed this decline primarily to a strategic shift focusing on marketing effectiveness and profitability over immediate revenue growth, despite an increase in wholesale volume.

The company's gross profit for the quarter was $295.5 million, reflecting a decrease of 12% from $335.6 million year-over-year. The gross profit margin also fell to 42.1% from 43.3% in the previous year, driven by lower revenues and increased costs associated with tariffs and commodities. Operating income for the quarter was reported at $74.3 million, down from $91.1 million in the prior year, while net income increased to $70.6 million from $64.3 million, resulting in a basic net income per share of $1.11, up from $1.01.

In terms of operational metrics, the company fulfilled approximately 6.2 million orders during the quarter, a decrease of 16.4% compared to the same period last year. However, the average order value increased by 5.2% to $96.82. The Consumer Floral & Gifts segment saw a significant revenue drop of 22.7%, while the BloomNet segment experienced a smaller decline of 3.1%. The Gourmet Foods & Gift Baskets segment's revenue decreased by 3.8%, although it benefited from increased wholesale orders from major retailers.

Strategically, 1-800-Flowers.com completed the acquisition of the Scharffen Berger brand in July 2024, enhancing its Gourmet Foods & Gift Baskets segment. The company is also focusing on cost savings and organizational efficiency as part of its long-term growth strategy. As of December 28, 2025, the company reported cash and cash equivalents of $193.3 million, a significant increase from $46.5 million at the end of the previous fiscal period, indicating improved liquidity. The company anticipates that its available cash will be sufficient to meet operational needs through the remainder of fiscal 2026, despite the seasonal nature of its business.