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1-800-Flowers Squeezes Cash Amid Sales Slump
13 Sep
Summary
- Company revenue fell 10.8% to $1.5 billion in fiscal 2026.
- Free cash flow improved by $55 million due to cost savings.
- Inventory was reduced, and digital platforms were consolidated.
1-800-Flowers.com Inc. announced fiscal 2026 results on September 10, revealing a 10.8% year-over-year revenue decrease to $1.5 billion. The fourth quarter alone saw a 12.9% drop to $293.1 million, reflecting cautious consumer spending on gifts and gourmet items.
Despite the sales decline, the company demonstrated improved financial discipline. Inventory levels were reduced from $177 million to $153 million, and free cash flow saw a $55 million increase compared to the previous year. A two-year cost savings target of $50 million was achieved a full year ahead of schedule.
Operational changes included integrating brands under functional teams rather than siloed brand management. For example, the floral business unified merchandising teams, and Harry & David launched a redesigned, mobile-first website. Low-traffic sites were folded into larger ones to consolidate customer traffic.
However, overall transactions fell 17.6% for the year. Consumer floral and gifts decreased by 13.4%, and gourmet foods and gift baskets dropped by 15.4%. Adjusted EBITDA also significantly declined to $2.9 million from $29.2 million in the prior year.
