Yahoo Finance 1-800-Flowers.com Inc (FLWS) Reports Fiscal Q3 Results: Misses Revenue and Earnings Estimates
Revenue: Reported at $379.4 million, falling short of the estimated $383.9 million.
Net Loss: Recorded at $16.9 million, above the estimated loss of $13.77 million.
Earnings Per Share (EPS): Reported at -$0.26, slightly worse than the estimated -$0.25 per share.
Gross Profit Margin: Improved by 300 basis points to 36.6%, indicating a significant recovery.
Adjusted EBITDA: Loss of $5.7 million, compared with a loss of $5.5 million in the prior year period, showing minimal change.
Workforce Reduction: Implemented during the fiscal third quarter as part of cost management efforts.
Company Guidance: Fiscal 2024 guidance reiterated, indicating stable future expectations despite current losses.
On May 2, 2024, 1-800-Flowers.com Inc (NASDAQ:FLWS) disclosed its fiscal 2024 third-quarter results through its 8-K filing. The company reported revenues of $379.4 million and a net loss of $16.9 million, or $0.26 per share. Adjusted for specific financial measures, the net loss was $18.0 million, or $0.28 per share. These figures fell short of analyst expectations, which estimated a smaller net loss of $13.77 million and higher revenue of $383.90 million.
1-800-Flowers.com Inc, a prominent player in the gifting industry, operates a diverse portfolio of brands such as 1-800-Flowers.com, Cheryl's Cookies, and Harry & David, among others. The company is known for its Celebrations Passport loyalty program, which enhances customer engagement through benefits like free shipping.
Financial and Operational Highlights
The company's gross profit margin saw an improvement, rising 300 basis points to 36.6%. Despite this, the overall revenue declined, influenced by a challenging consumer environment. CEO Jim McCann highlighted efforts to optimize operations, including workforce reductions, as part of their "Work Smarter" initiative.
McCann also reassured stakeholders by emphasizing the company's robust position compared to past years and reiterated the long-term revenue growth outlook. He stressed ongoing strategic initiatives aimed at making 1-800-Flowers.com the preferred platform for expressive gifting.
Detailed Financial Performance
The balance sheet shows a healthy liquidity position with $183.956 million in cash and cash equivalents as of March 31, 2024, an increase from $126.807 million on July 2, 2023. However, the company faced a significant operating loss of $27.929 million during the quarter, compared to an operating loss of $84.644 million in the prior year's corresponding period.
Segment-wise, the Gourmet Foods and Gift Baskets, and Consumer Floral and Gifts segments reported reduced revenue, while the BloomNet segment saw a 26.1% decline in revenue. These segments are crucial for the company's diversified business model, which aims to mitigate risks associated with economic fluctuations.
Market and Future Outlook
1-800-Flowers.com Inc reiterated its fiscal 2024 guidance, indicating stability in its future expectations despite the current quarter's setbacks. The management's commentary suggests a focus on long-term growth and operational efficiency, which could appeal to investors looking for recovery and growth potential in the retail-cyclical sector.
The company's strategic positioning, coupled with a broad array of brands and a strong online presence, provides a solid foundation for navigating the competitive and ever-changing retail landscape. As consumer spending patterns evolve, 1-800-Flowers.com's adaptability will be critical in sustaining growth and profitability.
For detailed financial figures and future projections, investors and interested parties are encouraged to refer to the official documents and earnings call recordings available on the company's investor relations website.
Explore the complete 8-K earnings release (here) from 1-800-Flowers.com Inc for further details.
This article first appeared on GuruFocus.
