1-800-FLOWERS.COM reported fiscal 2026 consolidated revenue of $1.50 billion, down 10.8% from $1.69 billion a year earlier, as declining Consumer Floral & Gifts and Gourmet Foods & Gift Baskets sales weighed on results.
The company posted a fiscal-year net loss of $134.8 million, or $2.11 per diluted share, including a $45.2 million non-cash goodwill and intangible asset impairment charge.
That compared with a $200.0 million loss, or $3.13 per share, in fiscal 2025, which included a $143.8 million impairment charge.
Adjusted net loss was $77.5 million, or $1.21 per share, compared with $52.5 million, or $0.82 per share, a year earlier. Adjusted EBITDA declined to $2.9 million from $29.2 million.
Full-year gross margin decreased 70 basis points to 38.0%, reflecting lower sales volume, higher commodity costs and inventory reserves, partially offset by cost reductions and operational efficiency initiatives.
Fourth-quarter revenue decreased 12.9% to $293.1 million.
Consumer Floral & Gifts revenue declined 13.4%, Gourmet Foods & Gift Baskets fell 15.4%, while BloomNet revenue increased 1.9%.
The company reported a fourth-quarter net loss of $52.3 million, or $0.82 per share, and an adjusted EBITDA loss of $31.0 million.
For the full year, Gourmet Foods & Gift Baskets revenue declined 5.2% to $768.5 million, Consumer Floral & Gifts revenue fell 17.7% to $638.9 million and BloomNet revenue decreased 1.9% to $96.8 million.
Despite the earnings pressure, operating cash flow improved to $18.3 million from a use of $26.4 million a year earlier. Free cash flow improved to negative $13.0 million from negative $67.8 million.
Cash and cash equivalents ended the year at approximately $11.4 million.
As part of efforts to improve financial flexibility, 1-800-FLOWERS.COM amended its credit agreement to extend covenant relief and allow a portion of potential asset-sale proceeds to be invested in strategic initiatives.
The company is also evaluating potential public or private debt and equity financings, sales of non-strategic assets and other capital structure transactions. Guggenheim Securities has been retained as financial advisor. Management emphasized that the process is at an early stage and may not result in a transaction.
For fiscal 2027, the company expects net revenue to decline in the mid-single-digit percentage range from fiscal 2026.
Adjusted EBITDA is expected at $10 million to $15 million, including approximately $12 million of additional compensation expense compared with fiscal 2026. Management plans to reinvest a significant portion of cost savings in marketing technology, digital customer experience, personalization and customer acquisition and retention initiatives.
KEY QUOTES:
“Fiscal 2026 was a year of meaningful progress as we strengthened the foundation of our business and positioned the Company for its next phase of transformation. We strengthened our leadership team, began to modernize our digital and marketing capabilities, simplified how we operate, and became a more customer-first, data-driven organization. As we enter fiscal 2027, accelerating the recovery of our revenue trends is our highest priority. We will continue building these capabilities while increasingly putting them to work to improve customer acquisition, engagement, and retention and to drive better business performance over time.”
“As part of our continued efforts to enhance our financial flexibility and support the ongoing transformation of the business, we recently amended our credit agreement to provide additional financial flexibility. We are also evaluating a range of options, including the sale of non-strategic assets and capital raising options, intended to optimize our capital structure and support investments in our transformation and drive future growth. While this work is underway, we remain focused on executing our fiscal 2027 priorities and improving the fundamental drivers of our business.”
Adolfo Villagomez, Chief Executive Officer of 1-800-FLOWERS.COM
