1-800-Flowers.com Reports Results

1-800-Flowers.com(NASDAQ:FLWS) reported fourth quarter and full year 2025 results on Aug. 27, 2025, with revenue declining 6.7% year over year for the quarter and 8% year over year for the full fiscal year. Management detailed a multi-year transformation plan focused on cost efficiency, customer engagement, and channel expansion, while shifting emphasis from top-line growth to variable contribution margin.

The following highlights key strategic and quantitative developments shaping the company’s long-term outlook.

1-800-Flowers.com launches cost reduction plan

Adjusted operating expenses decreased by $3.7 million in the fourth quarter and by $10.9 million for the full year, but adjusted EBITDA losses widened to $24.2 million in the fourth quarter and adjusted EBITDA was $29.2 million for fiscal year 2025, compared to $93.1 million in the prior year. The company ended the year with net debt of $114 million, an $83 million increase year-over-year, and cash of $47 million at year-end. Management has implemented $17 million of a $40 million annualized cost reduction plan and engaged an external consultant to identify further efficiencies.

"We have launched a comprehensive review of our structure, supply chain, procurement, and IT costs to simplify how we work, eliminate redundancy, and build greater agility. We have also engaged an external consultant to help us accelerate time to impact. Procurement is one clear example of improvement. Today, sourcing is fragmented across brands. By centralizing it, we can leverage scale, lower costs, and improve consistency. Similarly, we are reviewing level planning and our end-to-end supply chain to drive further efficiencies."
-- Adolfo Villagomez, Chief Executive Officer

Centralizing procurement and overhauling cross-brand operations is expected to drive sustainable cost savings and improve operational agility, which is critical given the company’s increased net debt and ongoing EBITDA pressure.

Data-driven strategy targets customer retention

At year-end, the company reported 9.5 million customers and over 900,000 Passport loyalty program members, with 74% of revenue from existing customers. Multi-branded customers represented 13% of the base and contributed 29% of revenues, while Passport members (9% of total customers) accounted for 19% of sales. Management is prioritizing retention, loyalty program expansion, and algorithm-driven merchandising, with a new marketing framework focused on variable contribution margin.

"We are transforming 1-800-Flowers.com into a customer-centric, data-driven organization with clear priorities and ROI-driven decision-making. Our plan centers on four key areas: achieving cost savings and organizational efficiency, strengthening our customer focus, expanding our reach beyond e-commerce into new channels, and enhancing talent and accountability. On our cost structure, the company has not sufficiently adjusted expenses to reflect lower revenues. We have launched a comprehensive review of our structure, supply chain, procurement, and IT costs to simplify how we work, eliminate redundancy, and build greater agility. We have also engaged an external consultant to help us accelerate time to impact. Procurement is one clear example of improvement. Today, sourcing is fragmented across brands. By centralizing it, we can leverage scale, lower costs, and improve consistency. Similarly, we are reviewing level planning and our end-to-end supply chain to drive further efficiencies."
-- Adolfo Villagomez, Chief Executive Officer

By shifting to a data-driven, retention-focused approach and optimizing marketing spend, the company aims to increase customer lifetime value and reduce reliance on costly customer acquisition, supporting long-term profitability.

Omni-channel expansion diversifies revenue streams

Fourth quarter segment declines included Consumer Floral and Gifts down 8.8% year over year, Gourmet Foods and Gift Baskets down 3.6% year over year, and BloomNet down 0.6% year over year. Management attributed stagnant growth to historic over-reliance on e-commerce and search platform marketing, and is now piloting pop-up stores at Macy’s and malls, experimenting with physical retail for Harry and David and Things Remembered, and testing digital marketplaces and subscription models.

"The way we're thinking about it is, wherever the customer is, we have products for them. We as I mentioned, it's I think beyond gifting, we're also focusing on self-consumption. And we have a lot of products for self-consumption. So, we're experimenting our way to grow. So, all of the things you mentioned, Doug, are options. We are fact-based. We are data-driven. So whatever delivers the best performance, that's where we are going to invest our capital. I think number one priority for me and for the team is, let's make sure that we drive profitable growth and the return on invested capital we provide to our shareholders is above their expectations."
-- Adolfo Villagomez, Chief Executive Officer

Expanding into new retail and digital channels is designed to reduce dependence on any single channel, capture new customer segments, and support profitable growth through diversified revenue streams.

Looking Ahead

Management did not provide specific quantitative guidance for fiscal 2026, instead characterizing the year as foundational for investments in cost discipline, digital modernization, and channel experimentation. The multi-year "celebration strategy" remains central, with objectives to drive cost savings, operational agility, customer retention, and incremental revenue through expanded distribution and product innovation. No formal revenue, EBITDA, or margin targets were issued for fiscal 2026.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,047%* — a market-crushing outperformance compared to 184% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of August 25, 2025

Motley Fool Markets Team is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. The Motley Fool takes ultimate responsibility for the content of these articles. Motley Fool Markets Team cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends 1-800-Flowers.com. The Motley Fool has a disclosure policy.