1-800-Flowers.com Q2 Sales Dip Slightly, Expenses Remain High

Ticker: FLWS · Form: 10-Q · Filed: Jan 31, 2025 · CIK: 1084869

Sentiment: neutral

Topics: earnings, revenue, expenses

TL;DR

1-800-Flowers sales down slightly to $587.9M, expenses still high. Watch margins.

AI Summary

1-800-Flowers.com, Inc. filed its 10-Q for the period ending December 29, 2024. The company reported net sales of $587.9 million for the six months ended December 29, 2024, a slight decrease from $592.8 million in the prior year period. Operating expenses, including corporate expenses and stock-based compensation, were $216.5 million for the six months ended December 29, 2024.

Why It Matters

This filing provides insight into 1-800-Flowers.com's recent financial performance, indicating a slight revenue decline and significant operating costs which could impact future profitability.

Risk Assessment

Risk Level: medium — The company's slight decrease in net sales and substantial operating expenses suggest potential challenges in maintaining profitability and market share.

Key Numbers

Key Players & Entities

FAQ

What was the net sales for the six months ended December 29, 2024?

Net sales for the six months ended December 29, 2024, were $587,926,950.

How do the net sales for the six months ended December 29, 2024, compare to the prior year period?

Net sales decreased slightly from $592,812,530 for the six months ended December 29, 2023, to $587,926,950 for the six months ended December 29, 2024.

What are included in the company's corporate expenses?

Corporate expenses include Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-based compensation.

What was the total operating expenses for the six months ended December 29, 2024?

Total operating expenses for the six months ended December 29, 2024, were $216,452,900.

What is the company's fiscal year end?

The company's fiscal year ends on June 29.

Filing Stats: 4,399 words · 18 min read · ~15 pages · Grade level 14.9 · Accepted 2025-01-31 13:55:32

Key Financial Figures

Filing Documents

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34 Part II. Other Information 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 Table of Contents

– FINANCIAL INFORMATION

PART I. – FINANCIAL INFORMATION

– CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except for share data) December 29, 2024 June 30, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 247,220 $ 159,437 Trade receivables, net 61,352 18,024 Inventories 157,438 176,591 Prepaid and other 26,884 31,680 Total current assets 492,894 385,732 Property, plant and equipment, net 223,178 223,789 Operating lease right-of-use assets 110,455 113,926 Goodwill 156,648 156,537 Other intangibles, net 115,079 116,216 Other assets 39,516 36,448 Total assets $ 1,137,770 $ 1,032,648 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 113,588 $ 80,005 Accrued expenses 193,558 121,303 Current maturities of long-term debt - 10,000 Current portion of long-term operating lease liabilities 18,490 16,511 Total current liabilities 325,636 227,819 Long-term debt, net 157,474 177,113 Long-term operating lease liabilities 102,038 105,866 Deferred tax liabilities, net 17,905 19,402 Other liabilities 39,610 36,106 Total liabilities 642,663 566,306 Commitments and contingencies (See Note 13 ) Stockholders' equity: Preferred stock, $ 0.01 par value, 10,000,000 shares authorized, none issued - - Class A common stock, $ 0.01 par value, 200,000,000 shares authorized, 59,281,253 and 58,792,695 shares issued at December 29, 2024 and June 30, 2024, respectively 593 588 Class B common stock, $ 0.01 par value, 200,000,000 shares authorized, 32,348,221 shares issued at December 29, 2024 and June 30, 2024 323 323 Additional paid-in capital 405,450 399,165 Retained earnings 295,136 264,978 Accumulated other comprehensive loss ( 127 ) ( 127 ) Treasury stock, at cost, 22,596,217 and 21,645,290 Class A shares at December 29, 2024 and June 30, 2024, respectively and 5,280,000 Class B shares at December 29, 202

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