1-800-FLOWERS.COM Plunges to Deeper Loss Amid Revenue Decline

Ticker: FLWS · Form: 10-Q · Filed: Oct 30, 2025 · CIK: 1084869

Sentiment: bearish

Topics: E-commerce, Gifting, Seasonal Business, Net Loss, Cash Flow, Inventory Management, Debt

Related Tickers: FLWS, FTD

TL;DR

**FLWS is bleeding cash and revenue, avoid this stock until they prove they can turn around their core business.**

AI Summary

1-800-FLOWERS.COM, Inc. (FLWS) reported a significant net loss of $52.957 million for the three months ended September 28, 2025, a substantial increase from the $34.190 million net loss in the prior year period. This was driven by a 11.1% decrease in net revenues, falling from $242.090 million to $215.200 million. Gross profit declined by 16.8% to $76.762 million from $92.319 million. Operating loss widened to $50.513 million from $46.981 million, despite a reduction in total operating expenses from $139.300 million to $127.275 million. The company's cash and cash equivalents significantly decreased from $46.502 million at June 29, 2025, to $7.747 million at September 28, 2025, primarily due to $138.974 million in cash used in operating activities, largely for inventory build-up of $92.654 million. Long-term debt increased, with current maturities rising from $21.000 million to $134.000 million, reflecting increased borrowings of $110.000 million. The company acquired Scharffen Berger for $3.3 million in July 2024, expanding its Gourmet Foods & Gift Baskets segment.

Why It Matters

This filing reveals a challenging quarter for 1-800-FLOWERS.COM, with declining revenues and a widening net loss, which could signal a difficult holiday season ahead if trends persist. For investors, the significant cash burn from operations and increased debt raise concerns about liquidity and future profitability, especially given the seasonal nature of the business. Employees might face pressure if cost-cutting measures become more aggressive. Customers could see impacts on product availability or pricing if the company struggles to manage its inventory and operational efficiency in a competitive gifting market, where rivals like FTD and local florists vie for market share. The broader market may view this as a bellwether for consumer discretionary spending in the gifting sector.

Risk Assessment

Risk Level: high — The company reported a net loss of $52.957 million, a significant increase from $34.190 million in the prior year, and cash and cash equivalents plummeted from $46.502 million to $7.747 million. This substantial cash burn, coupled with a 11.1% revenue decline and a $113.000 million increase in current maturities of long-term debt, indicates severe liquidity and operational challenges.

Analyst Insight

Investors should consider reducing or avoiding positions in FLWS given the significant decline in cash, widening net loss, and increased debt. Monitor future filings closely for signs of revenue stabilization, improved cash flow from operations, and effective inventory management before considering any new investment.

Financial Highlights

debt To Equity
2.87
revenue
$215.200M
operating Margin
-23.47%
total Assets
$840.501M
total Debt
$262.940M
net Income
-$52.957M
eps
-$0.83
gross Margin
35.67%
cash Position
$7.747M
revenue Growth
-11.1%

Key Numbers

Key Players & Entities

FAQ

Why did 1-800-FLOWERS.COM's net loss increase in Q1 2026?

1-800-FLOWERS.COM's net loss increased to $52.957 million for the three months ended September 28, 2025, from $34.190 million in the prior year, primarily due to an 11.1% decrease in net revenues from $242.090 million to $215.200 million, and a widening operating loss.

What were the key revenue changes for 1-800-FLOWERS.COM in the last quarter?

Net revenues for 1-800-FLOWERS.COM decreased by 11.1%, from $242.090 million in the three months ended September 29, 2024, to $215.200 million for the three months ended September 28, 2025.

How did 1-800-FLOWERS.COM's cash position change in Q1 2026?

1-800-FLOWERS.COM's cash and cash equivalents significantly decreased from $46.502 million at June 29, 2025, to $7.747 million at September 28, 2025, largely due to $138.974 million in net cash used in operating activities.

What impact did inventory have on 1-800-FLOWERS.COM's cash flow?

Inventories increased by $92.654 million during the quarter, contributing significantly to the $138.974 million net cash used in operating activities for 1-800-FLOWERS.COM.

What is the strategic outlook for 1-800-FLOWERS.COM given these results?

The filing indicates a challenging start to the fiscal year, with significant losses and cash burn. The company's ability to manage its seasonal business, particularly the upcoming Thanksgiving through Christmas holiday season, will be critical for its strategic outlook and potential return to profitability.

What are the main risks highlighted in 1-800-FLOWERS.COM's 10-Q?

Key risks include the significant net loss of $52.957 million, substantial cash burn from operations of $138.974 million, and a large increase in current maturities of long-term debt to $134.000 million, indicating potential liquidity and operational challenges.

How does 1-800-FLOWERS.COM's debt situation look after this quarter?

1-800-FLOWERS.COM's current maturities of long-term debt increased from $21.000 million at June 29, 2025, to $134.000 million at September 28, 2025, reflecting increased bank borrowings of $110.000 million.

What was the purpose of 1-800-FLOWERS.COM's acquisition of Scharffen Berger?

1-800-FLOWERS.COM acquired certain assets of the Scharffen Berger brand for $3.3 million on July 1, 2024, to expand its product offerings within the Gourmet Foods & Gift Baskets segment.

What accounting changes is 1-800-FLOWERS.COM evaluating?

1-800-FLOWERS.COM is evaluating the impact of ASU 2024-03, 'Expense Disaggregation Disclosures,' effective for fiscal years beginning after December 15, 2026, and ASU 2023-09, 'Improvements to Income Tax Disclosures,' effective for fiscal years beginning after December 15, 2024.

What is the significance of the seasonal fluctuations for 1-800-FLOWERS.COM?

Due to the seasonal nature of its business, 1-800-FLOWERS.COM typically generates over 40% of its annual revenues and all of its earnings during the Thanksgiving through Christmas holiday season, which falls within its second fiscal quarter. This makes the first quarter's performance, with its significant losses, particularly concerning.

Risk Factors

Industry Context

The floral and gift industry is highly seasonal, with significant revenue concentrated around holidays. Companies like 1-800-FLOWERS.COM face intense competition from online retailers, brick-and-mortar stores, and direct-to-consumer brands. Trends include a growing demand for personalized gifts, sustainable sourcing, and faster delivery options. The economic sensitivity of discretionary spending also plays a crucial role.

Regulatory Implications

As a publicly traded company, FLWS is subject to SEC regulations and reporting requirements. Compliance with accounting standards (GAAP) is critical for accurate financial reporting. Potential regulatory risks could arise from data privacy laws concerning customer information and consumer protection regulations related to online sales and advertising.

What Investors Should Do

  1. Monitor inventory levels closely: The significant increase in inventory needs to be managed effectively to avoid write-downs and improve cash flow.
  2. Analyze debt structure: The sharp rise in current debt maturities requires careful monitoring of the company's ability to service its short-term obligations.
  3. Assess revenue drivers: Understand the reasons behind the 11.1% revenue decline and the company's strategy to reverse this trend.
  4. Evaluate profitability improvements: Scrutinize management's plans to address the widening net loss and improve operating margins.
  5. Track cash burn: Observe the trend in cash flow from operations to ensure the company can sustain its activities without further significant cash depletion.

Key Dates

Glossary

Current maturities of long-term debt
The portion of long-term debt that is due to be repaid within the next year. (An increase in this figure indicates a growing short-term debt obligation, potentially straining liquidity.)
Net cash used in operating activities
The total cash outflow from the company's core business operations during a period. (A large negative number, as seen here ($138.974M), signifies that the business is consuming cash to operate, which can be unsustainable if not addressed.)
Inventories
The value of raw materials, work-in-progress, and finished goods held by the company for sale. (A significant increase in inventory ($92.654M) can tie up cash and potentially lead to obsolescence or markdowns if not sold.)
Gross profit
The profit a company makes after deducting the costs associated with making and selling its products (cost of goods sold). (A decline in gross profit indicates either rising costs or falling prices, impacting overall profitability.)
Operating loss
The loss a company incurs from its normal business operations before accounting for interest and taxes. (An widening operating loss suggests that the core business is becoming less efficient or facing greater cost pressures.)

Year-Over-Year Comparison

Compared to the prior year period, 1-800-FLOWERS.COM, Inc. (FLWS) experienced a significant downturn. Net revenues fell by 11.1% to $215.200 million, and gross profit declined by 16.8%. The company's net loss widened substantially to $52.957 million from $34.190 million, and the operating loss also increased. A critical concern is the drastic reduction in cash and cash equivalents, down to $7.747 million from $46.502 million, alongside a sharp increase in current debt maturities from $21.000 million to $134.000 million.

Filing Stats: 4,567 words · 18 min read · ~15 pages · Grade level 15.5 · Accepted 2025-10-30 16:21:16

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 30 Item 4.

Controls and Procedures

Controls and Procedures 30 Part II. Other Information 30 Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults upon Senior Securities 31 Item 4. Mine Safety Disclosures 31 Item 5. Other Information 31 Item 6. Exhibits 32

Signatures

Signatures 33 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) September 28, 2025 June 29, 2025 (unaudited) Assets Current assets: Cash and cash equivalents $ 7,747 $ 46,502 Trade receivables, less allowances for credit losses of $ 2,257 and $ 2,440 , respectively 40,003 21,693 Inventories 269,781 177,127 Prepaid and other 40,657 37,405 Total current assets 358,188 282,727 Property, plant and equipment, net 209,571 215,596 Operating lease right-of-use assets 103,710 107,476 Goodwill 37,625 37,625 Trademarks with indefinite lives 86,673 86,673 Other intangibles, net 2,235 2,691 Other assets 42,499 39,829 Total assets $ 840,501 $ 772,617 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 73,938 $ 74,581 Accrued expenses 123,233 109,887 Current maturities of long-term debt 134,000 21,000 Current portion of long-term operating lease liabilities 15,277 15,918 Total current liabilities 346,448 221,386 Long-term debt, net 128,940 134,764 Long-term operating lease liabilities 96,403 99,644 Deferred tax liabilities, net 6,447 6,679 Other liabilities 44,755 41,862 Total liabilities 622,993 504,335 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, 59,544,423 and 59,470,528 shares issued at September 28, 2025 and June 29, 2025, respectively 595 594 Class B common stock, $ 0.01 par value, 200,000,000 shares authorized, 32,348,221 shares issued at September 28, 2025 and June 29, 2025 323 323 Additional paid-in capital 413,591 411,280 Retained earnings 12,028 64,985 Accumulated other comprehensive loss ( 140 ) ( 140 ) Treasury stock, at cost, 22,945,729 and 22,919,849 Class A shares at September 28, 2025 and June 29, 2025, respective

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