1-800-FLOWERS.COM, Inc.
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Item 1. BUSINESS
The Company
1-800-FLOWERS.COM, Inc. and its subsidiaries (collectively, the “Company”) is a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Scharffen Berger®, and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, the Company strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad range of products and services designed to help its members grow their businesses profitably; Napco®, a resource for floral gifts and seasonal décor; DesignPac®, a manufacturer of gift baskets and towers; and Card Isle®, an e-commerce greeting card service.
Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
References in this Annual Report on Form 10-K to “1-800-FLOWERS.COM” and the “Company” refer to 1-800-FLOWERS.COM, Inc. and its subsidiaries. The Company’s principal offices are located at Two Jericho Plaza, Suite 200, Jericho, NY 11753 and its telephone number at that location is (516) 237-6000.
Narrative Description of Business
The Origins of 1-800-FLOWERS.COM
The Company’s operations began in 1976 when James F. McCann, the Company’s founder and current Executive Chairman of the Board of Directors, acquired a single retail florist in New York City, which he subsequently expanded to a 14-store chain. Thereafter, the Company modified its business strategy to take advantage of the rapid emergence of toll-free calling. The Company acquired the right to use the toll-free telephone number 1-800-FLOWERS, adopted it as its corporate identity and began to aggressively build a national brand around it.
The Company’s Strategy
The Company’s objective is to be the leading authority on thoughtful gifting, to serve an expanding range of our customers’ celebratory needs, thereby helping our customers express themselves and connect with the important people in their lives. The Company will continue to build on the trusted relationships with our customers by providing them with ease of access, tasteful and appropriate gifts, and superior service. By engaging with our customers, we help to inspire more human expression and connection – sentiments that are more important than ever in the current environment.
The Company believes that 1-800-FLOWERS.COM® is one of the most recognized brands in the floral and gift industries. The strength of its brand has enabled the Company to extend its product offerings beyond the floral category into complementary products, which include gourmet popcorn, cookies and related baked and snack food products, premium chocolate and confections, wine gifts, gourmet gift baskets, fruit arrangements, and gift-quality fruit baskets, dipped berries, steaks, chops, seafood and prepared meals, as well as an extensive selection of personalized products. On April 3, 2024, the Company completed its acquisition of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across its brands. On July 1, 2024, the Company completed its acquisition of certain assets of Scharffen Berger®, a manufacturer of giftable premium chocolate and specialty treats, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets segment. This extended line of gift offerings helps our customers with their celebratory occasions and will enable the Company to increase the purchase frequency and average order value for existing customers who have come to trust the 1-800-FLOWERS.COM brand, as well as continue to attract new customers. The platform that the Company has built allows it to expand rapidly into new product categories using a “marketplace” concept, providing its customers with a wider selection of solutions to help them express, connect and celebrate life's occasions and recipients – including themselves.
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The Company’s consolidated customer database and multi-brand website is designed to dynamically engage our customers, further enhancing the Company’s position as a leading, one-stop destination for our customers’ gifting and celebratory needs. The Company is focused on deepening relationships with its customers through content and community and inspiring our customers to give more and to build better and more meaningful relationships. We have a large customer file, including 0.8 million Celebrations Passport members who, along with our multi-brand customers, represent our best customer cohorts in terms of frequency, retention and average spend, and thus customer lifetime value. Celebrations Passport and multi-brand customers spend an average of 2x to 3x the amount spent by other customers. Multi-brand customers and Celebrations Passport members represent approximately 20% of customers and approximately 35% of revenue.
As part of the Company’s continuing effort to serve the thoughtful gifting needs of our customers, and leverage its business platform, the Company continues to execute its vision to build a “Celebratory Ecosystem”, including a collection of premium gifting brands, and a suite of products and services designed to help our customers deliver smiles to the important people in their lives.
A summary of the Company’s brands and/or businesses follows:
Although the Company’s family of brands maintain their own sense of identity, the Company has taken a holistic approach towards operating its brand portfolio. A key feature of this approach is that the Company proactively shares best practices across its functional areas, through centralized operational centers of excellence focused on identifying initiatives designed to enhance top and bottom-line growth opportunities.
| CONSUMER FLORAL & GIFTS SEGMENT | |||||
| Direct-to-consumer, multi-channel provider of fresh flowers, plants, fruit and gift basket products, balloons, candles, keepsake gifts, jewelry and plush stuffed animals. | |||||
| Direct-to-consumer, multi-channel provider of artistically carved fresh fruit arrangements. | |||||
| Franchisor and operator of retail flower shops. | |||||
| E-commerce provider of personalized gifts and keepsakes. | |||||
| E-commerce provider of personalized gifts and keepsakes, which operations are integrated within the PersonalizationMall.com brand. | |||||
| BLOOMNET SEGMENT | |||||
| Provider of products and services to the professional florist. | |||||
| Wholesale merchandiser and marketer of floral industry and related products. | |||||
| Provider of digital and physical greeting cards to sister brands, as well as independent florist and other wholesale customers, acquired in April 2024. | |||||
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| GOURMET FOODS & GIFT BASKETS SEGMENT | |||||
| Multi-channel specialty retailer and producer of premium gift quality fruit, gourmet food products and other gifts marketed under the Harry & David® and Cushman’s® brands. | |||||
| Manufacturer and retailer of indulgent bakery gifts, including super-thick English muffins, toppings, and desserts. | |||||
| Multi-channel retailer and manufacturer of small batch gourmet buttery caramel and chocolate covered popcorn. | |||||
| E-commerce provider of wild-caught seafood and sustainably harvested shellfish, pastured proteins, organic foods, and marine-sourced nutritional supplements. | |||||
| Manufacturer of giftable premium popcorn and specialty treats. | |||||
| Multichannel retailer and baker of premium cookies, baked gifts, and related products, including Mrs. Beasley’s®, a baker of cakes, muffins and gourmet gift baskets. | |||||
| E-commerce retailer of gift baskets and towers. | |||||
| Designer, assembler and distributor of wholesale gift baskets, gourmet food towers and gift sets. | |||||
| E-commerce retailer of artisan chocolates and confections. | |||||
| E-commerce retailer of dipped berries and other specialty treats. | |||||
| Manufacturer of giftable premium chocolate and specialty treats, acquired in July 2024. | |||||
The Company’s Products and Service Offerings
The Company offers a wide range of products including fresh-cut flowers, floral and fruit arrangements and plants, gifts, greeting cards, personalized products, dipped berries, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy, wine, and gift-quality fruit. In order to maximize sales opportunities, products are not exclusive to certain brands and may be sold across business categories. The Company’s differentiated and value-added product offerings create the opportunity to have a relationship with customers who purchase items not only for gift-giving occasions but also for everyday consumption. The Company’s product development team works closely with its production team to select and design its floral, gourmet foods and gift baskets, as well as other gift-related products that accommodate our customers’ needs to celebrate a special occasion or convey a sentiment. As part of this continuing effort, the Company intends to continue to develop differentiated products and signature collections that customers have embraced and come to expect.
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Flowers, Plants, and Personalized Gifts. The Company’s flagship 1-800-Flowers.com® brand offers fresh-cut flowers and floral and fruit arrangements for life's occasions and holidays, available for same-day delivery. The Company provides its customers with a curated choice of florist designed products, including traditional floral and gift offerings, and the Company’s line of fruit arrangements, under the FruitBouquets.com® brand, and flowers delivered fresh from the farm. The Company also offers a wide variety of popular plants to brighten the home and/or office, and accent gardens and landscapes. In addition, through its Personalization Mall® and Things Remembered® brands, the Company offers a wide assortment of products using sublimation, embroidery, digital printing, engraving, and sandblasting to provide a unique, personalized experience to our customers.
Gourmet Foods & Gift Baskets. Harry & David is a vertically integrated, multi-channel specialty retailer and producer of branded, premium gift-quality fruit, food products, land and sea-based proteins, and gifts marketed under the Harry & David®, Wolferman’s Bakery®, Vital Choice®, Cushman’s®, Moose Munch® and Scharffen Berger®
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) is intended to provide an understanding of our financial condition, change in financial condition, cash flow, liquidity and results of operations. The following MD&A discussion should be read in conjunction with the consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-K. The following discussion contains forward-looking statements that reflect the Company’s plans, estimates and beliefs. The Company’s actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to any differences include, but are not limited to, those discussed under Item 1A — “Risk Factors.”
Business Overview
The Company is a leading provider of thoughtful expressions designed to help inspire customers to give more, connect more, and build more and better relationships. See Item 1 in Part I for a detailed description of the Company’s business.
Business Segments
The Company operates in the following three business segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. The Consumer Floral & Gifts segment includes the operations of the Company’s flagship brand, 1-800-Flowers.com, Personalization Mall, Things Remembered, FruitBouquets.com, and Flowerama, while the Gourmet Foods & Gift Baskets segment includes the operations of Harry & David, Wolferman’s Bakery, Vital Choice, Moose Munch, Cheryl’s Cookies, Mrs. Beasley’s, The Popcorn Factory, DesignPac, 1-800-Baskets.com, Simply Chocolate, Shari’s Berries, and Scharffen Berger. The BloomNet segment includes the operations of BloomNet, Napco, and Card Isle.
Fiscal 2026 Results
Fiscal 2026 was a year of meaningful progress as the Company strengthened the foundation of the business and positioned the Company for its next phase of transformation. Throughout the year, the Company strengthened the leadership team, began to modernize its digital and marketing capabilities, simplified its operations, and became a more customer-first, data driven organization. These actions strengthened the foundation of the business and better positioned the Company to drive sustainable, profitable growth over the long term.
During fiscal 2026, net revenues decreased by $182.1 million, or 10.8%, to $1,503.5 million, compared to fiscal 2025, primarily due to a focus on marketing effectiveness and profitability over near-term revenue growth, offset in part by increased wholesale volume.
Gross margins declined in fiscal 2026, ending at 38.0%; a 70-basis point decrease over fiscal 2025, primarily due to deleveraging on the sales decline, partially offset by the Company’s cost reduction and operational efficiency initiatives.
Net loss was $134.8 million, compared with a net loss of $200.0 million in fiscal 2025. Adjusted EBITDA for fiscal 2026 was $2.9 million, compared with $29.2 million in fiscal 2025, reflecting a decline in Adjusted EBITDA, driven by lower sales and reduced gross margin, offset in part by decreases in advertising costs (See Reconciliation of net loss to adjusted EBITDA (non-GAAP) below).
Goodwill and Intangible Asset Impairment
During the quarter ended March 29, 2026, the Company evaluated whether events or circumstances had changed such that it was more likely than not that the fair value of its goodwill, intangibles and other long-lived assets were less than their carrying amounts. After consideration of current and projected operating results, changes in macro-economic conditions, and a decline in the Company’s market capitalization, the Company concluded that a triggering event had occurred that required an interim impairment assessment of the goodwill, intangibles and other long-lived assets for its Consumer Floral & Gifts reporting unit as of March 29, 2026. Based on the impairment assessment performed, the Company recorded a non-cash goodwill and intangible impairment charge of $45.2 million, comprised of $34.6 million attributable to the Consumer Floral & Gifts reporting unit's goodwill and $10.6 million attributable to the Personalization Mall tradename (indefinite-lived intangible asset) within the same reporting unit. The Company concluded that definite-lived and other long-lived assets of the reporting unit were not impaired.
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In fiscal 2025, during the quarter ended March 30, 2025, the Company evaluated whether events or circumstances had changed such that it was more likely than not that the fair value of its goodwill, intangibles, and other long-lived assets were less than their carrying amounts. After consideration of current operating results, changes in macro-economic conditions, and a decline in the Company’s market capitalization, the Company concluded that a triggering event had occurred that required an interim impairment assessment of goodwill, intangibles, and other long-lived assets for its Consumer Floral & Gifts reporting unit. As such, the Company performed an impairment test of the reporting unit’s goodwill, intangibles and long-lived assets as of March 30, 2025, and recorded a non-cash goodwill and intangible impairment charge of $138.2 million, comprised of $113.4 million related to goodwill and $24.8 million attributable to the Personalization Mall tradename (indefinite-lived intangible asset). The Company concluded that definite-lived and other long-lived assets of the reporting unit were not impaired. In the fourth quarter of fiscal 2025, the Company recorded an immaterial adjustment of $5.6 million to increase the previously recognized non-cash goodwill impairment charge. The adjustment was the result of a change in the estimated allocation of the impairment charge between goodwill that is deductible and non-deductible for tax purposes.
In fiscal 2024, during the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company’s Personalization Mall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the Personalization Mall tradename - see Note 7 – Goodwill, trademarks with indefinite lives and other intangibles, net in Item 15.
Acquisition of Scharffen Berger
On July 1, 2024, the Company completed its acquisition of certain assets of Scharffen Berger®, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment. The Company used cash on its balance sheet to fund the approximately $3.3 million purchase. Scharffen Berger annual revenues and results of operations, based on its most recently available financial information at the time of acquisition, are deemed immaterial to the Company's consolidated financial statements and, as such, pro forma results of operations have not been presented - see Note 4 – Acquisitions in Item 15.
Acquisition of Card Isle
On April 3, 2024, the Company completed its acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands. The Company used cash on its balance sheet to fund the $3.6 million purchase. Card Isle annual revenue and results of operations, based on its most recently available financial information at the time of acquisition, are deemed immaterial to the Company's consolidated financial statements – see Note 4 – Acquisitions in Item 15.
Definitions of non-GAAP financial measures:
We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. See below for definitions and the reasons why we use these non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. These non-GAAP financial measures are referred to as “non-GAAP”, “adjusted” or “on a comparable basis” below, as these terms are used interchangeably. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.
EBITDA and adjusted EBITDA
We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan ("NQDC Plan") investment appreciation/depreciation, goodwill and intangible impairment and certain items affecting period-to-period comparability.
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The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors used to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and Adjusted EBITDA-related items to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates.
EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company’s working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company’s performance.
The following table presents the EBITDA and Adjusted EBITDA for the fiscal years ended June 28, 2026 and June 29, 2025, respectively. For EBITDA and Adjusted EBITDA for the fiscal year ended June 30, 2024, please refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
| Reconciliation of net loss to Adjusted EBITDA (non-GAAP): | Years Ended | ||||||||||
| June 28, 2026 | June 29, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net loss | $ | (134,765) | $ | (199,993) | |||||||
| Add: Interest expense and other, net | 7,652 | 8,544 | |||||||||
| Add: Depreciation and amortization | 53,617 | 53,618 | |||||||||
| Add: Income tax benefit | (4) | (13,364) | |||||||||
| EBITDA | (73,500) | (151,195) | |||||||||
| Add: Stock-based compensation | 11,256 | 11,891 | |||||||||
| Add: Compensation charge related to NQDC plan investment appreciation | 7,708 | 5,423 | |||||||||
| Add: System implementation costs | — | 13,401 | |||||||||
| Add: Goodwill and intangible impairment | 45,154 | 143,823 | |||||||||
| Add: Restructuring cost/Severance | 12,312 | 5,823 | |||||||||
| Adjusted EBITDA | $ | 2,930 | $ | 29,166 | |||||||
Adjusted net income (loss) and adjusted or comparable net income (loss) per common share
We define adjusted net income (loss) and adjusted or comparable net income (loss) per common share as net income (loss) and net income (loss) per common share adjusted for certain items affecting period-to-period comparability. We believe that adjusted net income (loss) and adjusted or comparable net income (loss) per common share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP net income (loss) and net income (loss) per common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.
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The following table presents the adjusted net loss for the fiscal years ended June 28, 2026 and June 29, 2025. For adjusted net income for fiscal year ended June 30, 2024, please refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
| Reconciliation of net loss to adjusted net loss (non-GAAP): | Years Ended | ||||||||||
| June 28, 2026 | June 29, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net loss | $ | (134,765) | $ | (199,993) | |||||||
| Adjustments to reconcile net loss to adjusted net loss (non-GAAP) | |||||||||||
| Add: System implementation costs | — | 13,401 | |||||||||
| Add: Restructuring cost/Severance | 12,312 | 5,823 | |||||||||
| Add: Goodwill and intangible impairment | 45,154 | 143,823 | |||||||||
| Deduct: Income tax effect on adjustments | (182) | (15,572) | |||||||||
| Adjusted net loss (non-GAAP) | $ | (77,481) | $ | (52,518) | |||||||
| Basic and diluted net loss per common share | $ | (2.11) | $ | (3.13) | |||||||
| Basic and diluted adjusted net loss per common share (non-GAAP) | $ | (1.21) | $ | (0.82) | |||||||
| Weighted average shares used in the calculation of basic and diluted net loss and adjusted net loss per common share | 63,912 | 63,807 | |||||||||
Segment contribution margin and adjusted segment contribution margin
We define segment contribution margin as earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. Adjusted segment contribution margin is defined as segment contribution margin adjusted for certain items affecting period-to-period comparability. When viewed together with our GAAP results, we believe segment contribution margin and adjusted segment contribution margin provide management and users of the financial statements meaningful information about the performance of our business segments.
Segment contribution margin and adjusted segment contribution margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of segment contribution margin and adjusted segment contribution margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using these measures by looking at other GAAP measures, such as Operating Income (loss) and Net Income (loss).
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The following table presents the net revenues, gross profit, segment contribution margin, and adjusted segment contribution margin from each of the Company’s business segments, for the fiscal years ended June 28, 2026 and June 29, 2025. For segment contribution margin and adjusted segment contribution margin for the fiscal year ended June 30, 2024, please refer to our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.
| Years Ended | |||||||||||||||||||||||||||||||||||||||||
| June 28, 2026 | Goodwill and Intangible Impairment | Restructuring Cost/ Severance | As Adjusted (non-GAAP) June 28, 2026 | June 29, 2025 | System Implementation Costs | Goodwill and Intangible Impairment | Restructuring Cost/ Severance | As Adjusted (non-GAAP) June 29, 2025 | % Change | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||||||||||||||||||||
| Consumer Floral & Gifts | $ | 638,931 | $ | - | $ | - | $ | 638,931 | $ | 776,781 | $ | - | $ | - | $ | - | $ | 776,781 | -17.7 | % | |||||||||||||||||||||
| BloomNet | 96,832 | - | - | 96,832 | 98,707 | - | - | - | 98,707 | -1.9 | % | ||||||||||||||||||||||||||||||
| Gourmet Foods & Gift Baskets | 768,520 | - | - | 768,520 | 810,941 | - | - | - | 810,941 | -5.2 | % | ||||||||||||||||||||||||||||||
| Corporate | 249 | - | - | 249 | 333 | - | - | - | 333 | -25.2 | % | ||||||||||||||||||||||||||||||
| Intercompany eliminations | (1,021) | - | - | (1,021) | (1,104) | - | - | - | (1,104) | 7.5 | % | ||||||||||||||||||||||||||||||
| Total net revenues | $ | 1,503,511 | $ | - | $ | - | $ | 1,503,511 | $ | 1,685,658 | $ | - | $ | - | $ | - | $ | 1,685,658 | -10.8 | % | |||||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||||||||||||||||||
| Consumer Floral & Gifts | $ | 251,517 | $ | - | $ | - | $ | 251,517 | $ | 305,508 | $ | - | $ | - | $ | - | $ | 305,508 | -17.7 | % | |||||||||||||||||||||
| 39.4 | % | 39.4 | % | 39.3 | % | 39.3 | % | ||||||||||||||||||||||||||||||||||
| BloomNet | 46,829 | - | - | 46,829 | 47,914 | - | - | - | 47,914 | -2.3 | % | ||||||||||||||||||||||||||||||
| 48.4 | % | 48.4 | % | 48.5 | % | 48.5 | % | ||||||||||||||||||||||||||||||||||
| Gourmet Foods & Gift Baskets | 272,569 | - | - | 272,569 | 298,052 | 6,625 | - | - | 304,677 | -10.5 | % | ||||||||||||||||||||||||||||||
| 35.5 | % | 35.5 | % | 36.8 | % | 37.6 | % | ||||||||||||||||||||||||||||||||||
| Corporate | 420 | - | - | 420 | 798 | - | - | - | 798 | -47.4 | % | ||||||||||||||||||||||||||||||
| 168.7 | % | 168.7 | % | 239.6 | % | 239.6 | % | ||||||||||||||||||||||||||||||||||
| Total gross profit | $ | 571,335 | $ | - | $ | - | $ | 571,335 | $ | 652,272 | $ | 6,625 | $ | - | $ | - | $ | 658,897 | -13.3 | % | |||||||||||||||||||||
| 38.0 | % | 38.0 | % | 38.7 | % | 39.1 | % | ||||||||||||||||||||||||||||||||||
| EBITDA (non-GAAP): | |||||||||||||||||||||||||||||||||||||||||
| Segment Contribution Margin (non-GAAP) (a): | |||||||||||||||||||||||||||||||||||||||||
| Consumer Floral & Gifts | $ | 573 | $ | 45,154 | $ | 2,859 | $ | 48,586 | $ | (94,620) | $ | - | $ | 143,823 | $ | 1,261 | $ | 50,464 | -3.7 | % | |||||||||||||||||||||
| BloomNet | 26,930 | - | 281 | 27,211 | 29,047 | - | - | 222 | 29,269 | -7.0 | % | ||||||||||||||||||||||||||||||
| Gourmet Foods & Gift Baskets | 47,994 | - | 4,725 | 52,719 | 46,993 | 10,393 | - | 1,387 | 58,773 | -10.3 | % | ||||||||||||||||||||||||||||||
| Segment Contribution Margin Subtotal | 75,497 | 45,154 | 7,865 | 128,516 | (18,580) | 10,393 | 143,823 | 2,870 | 138,506 | -7.2 | % | ||||||||||||||||||||||||||||||
| Corporate (b) | (148,997) | - | 4,447 | (144,550) | (132,615) | 3,008 | - | 2,953 | (126,654) | -14.1 | % | ||||||||||||||||||||||||||||||
| EBITDA (non-GAAP) | (73,500) | 45,154 | 12,312 | (16,034) | (151,195) | 13,401 | 143,823 | 5,823 | 11,852 | -235.3 | % | ||||||||||||||||||||||||||||||
| Add: Stock-based compensation | 11,256 | - | - | 11,256 | 11,891 | - | - | - | 11,891 | -5.3 | % | ||||||||||||||||||||||||||||||
| Add: Compensation charge related to NQDC Plan Investment Appreciation | 7,708 | - | - | 7,708 | 5,423 | - | - | - | 5,423 | 42.1 | % | ||||||||||||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) (c) | $ | (54,536) | $ | 45,154 | $ | 12,312 | $ | 2,930 | $ | (133,881) | $ | 13,401 | $ | 143,823 | $ | 5,823 | $ | 29,166 | -90.0 | % | |||||||||||||||||||||
(a)Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income, net, and other items that we do not consider indicative of our core operating performance.
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(b)Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive, and stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions are included within corporate expenses as they are not directly allocable to a specific segment.
(c)See reconciliation of the Company's net loss to Adjusted EBITDA (non-GAAP) above.
Free Cash Flow
We define free cash flow as net cash provided by (used in) operating activities, less capital expenditures. The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet and repurchase stock or retire debt. Free cash flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since free cash flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company’s cash balance for the period.
The following table reconciles net cash provided by (used in) operating activities, a GAAP measure, to free cash flow, a non-GAAP measure.
| Years Ended | |||||||||||
| June 28, 2026 | June 29, 2025 | ||||||||||
| (in thousands) | |||||||||||
| Net cash provided by (used in) operating activities | $ | 18,308 | $ | (26,363) | |||||||
| Capital expenditures | (31,280) | (41,463) | |||||||||
| Free cash flow | $ | (12,972) | $ | (67,826) | |||||||
Results of Operations
The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to June 30. Fiscal years 2026, 2025, and 2024, which ended on June 28, 2026, June 29, 2025, and June 30, 2024, respectively, each consisted of 52 weeks.
Net Revenues
Next expected filings
- ~2026-10-28 10-Q expected by 2026-10-29 (in 46 days)
- ~2027-01-27 10-Q expected by 2027-01-28 (in 137 days)
- ~2027-05-05 10-Q expected by 2027-05-06 (in 235 days)
- ~2027-09-10 10-K expected by 2027-09-10 (in 363 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-09-11 10-K Annual Report
- 2026-09-10 8-K Material Agreement Entered; Earnings Release; Financial Statements and Exhibits
- 2026-05-07 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-07 10-Q Quarterly Report
- 2026-04-20 8-K Officer/Director Change
- 2026-01-29 10-Q Quarterly Report
- 2026-01-29 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-04 8-K Officer/Director Change
- 2025-10-30 10-Q Quarterly Report
- 2025-10-30 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-05 10-K Annual Report
- 2025-09-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-05-09 10-Q Quarterly Report
- 2025-05-08 8-K Material Agreement Entered; Earnings Release; Officer/Director Change; Financial Statements and Exhibits
- 2025-04-25 8-K Officer/Director Change