10-Q · May 7, 2026
1-800-FLOWERS.COM reported disappointing Q3 2026 results with revenues of $293 million, down 11.6% year-over-year, and an EPS of -$0.77, missing expectations. The company faced significant challenges including an 18.7%…
Earnings analysis · 10-K
FLWS earnings analysis
Filed September 11, 2026 · Our reading of the company's report
The latest report
FLWS is implementing a broad multi-brand, loyalty and technology-led transformation, but fiscal 2026 results show continued deterioration: revenue declined 10.8%, gross margin fell to 38.0%, operating loss was $127.1…
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FLWS is implementing a broad multi-brand, loyalty and technology-led transformation, but fiscal 2026 results show continued deterioration: revenue declined 10.8%, gross margin fell to 38.0%, operating loss was $127.1 million and diluted EPS was $(2.11). The Consumer Floral & Gifts segment remains particularly weak, while wholesale growth in Gourmet Foods & Gift Baskets and lower marketing spend only partially offset the decline. Improved free cash flow and lower term debt are positives, but negative working capital, only $11.4 million of cash, heightened covenant restrictions and the Hebron facility fire leave the outlook materially pressured.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-2.11
What stood out
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Loyalty ecosystem supports customer lifetime value
The Company is pursuing a multi-brand “Celebratory Ecosystem” built around recognized gifting brands, cross-selling, personalization, AI-enabled marketing and the Celebrations Passport loyalty program. Its 0.8 million Passport members and multi-brand customers represent approximately 20% of customers but approximately 35% of revenue, and spend 2x to 3x more than other customers.
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Revenue contraction remains the central trend
Fiscal 2026 revenue fell 10.8% to $1.504 billion, following an 8.0% decline in fiscal 2025 and a 2024 base of $1.831 billion. Gross margin declined from 40.1% in fiscal 2024 to 38.7% in fiscal 2025 and 38.0% in fiscal 2026, while operating loss was $127.1 million in fiscal 2026 versus $204.8 million in fiscal 2025 and $2.1 million in fiscal 2024.
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Consumer Floral drives segment deterioration
Consumer Floral & Gifts was the largest negative contributor, with revenue down 17.7% to $638.9 million and segment contribution margin of only $0.6 million, versus a $94.6 million loss in fiscal 2025. Gourmet Foods & Gift Baskets declined 5.2% to $768.5 million, partly offset by wholesale revenue growth of 10.2% to $116.2 million; BloomNet declined 1.9% to $96.8 million.
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Cost reductions have not restored earnings
Cost actions improved cash generation but did not restore profitability: marketing and sales expense fell 16.2% to $402.8 million, while adjusted EBITDA declined 90.0% to $2.9 million from $29.2 million. Net loss improved to $134.8 million from $200.0 million, but diluted EPS remained negative at $(2.11), compared with $(3.13) in fiscal 2025 and $(0.09) in fiscal 2024.
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Cash burn narrowed but remains negative
Free cash flow improved to negative $13.0 million from negative $67.8 million in fiscal 2025, driven by $18.3 million of operating cash flow and lower capital expenditures of $31.3 million. Capital spending remained focused on technology initiatives, with total technology and development spending of $81.7 million, including $23.9 million capitalized.
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Debt repayment prioritized over buybacks
Capital allocation was defensive: the Company repurchased $1.2 million of stock, down from $10.2 million in fiscal 2025, while making no dividend payments. It repaid $196.0 million of bank borrowings against $175.0 million of new borrowings during fiscal 2026, ended the year with no revolver balance, and reduced term debt to $139.0 million from $160.0 million.
What to watch
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Tight liquidity and increased lender controls
Liquidity remains constrained, with cash and cash equivalents falling to $11.4 million from $46.5 million and working capital turning negative at $(17.8) million from positive $61.3 million. The September 9, 2026 credit amendment replaced existing financial covenants with a minimum-liquidity covenant through September 26, 2027 and added lender call and prepayment requirements; $24.0 million of term debt is due in fiscal 2027 and $115.0 million in fiscal 2028.
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Hebron facility fire creates execution risk
A fire at the Hebron, Ohio facility on July 29, 2026 damaged property, equipment and inventory. Operations had only partially resumed when the financial statements were issued, and management stated that the ultimate financial impact could not yet be reasonably estimated, although insurance coverage and business-interruption claims exist.
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New flower tariffs threaten margins and supply
The filing identifies newly imposed tariffs on cut flowers imported from Canada beginning in August 2026, in addition to tariffs on flowers from Colombia during fiscal 2025 and fiscal 2026. The Company states that changing tariffs and trade policies could increase costs, disrupt inventory availability, reduce gross margins and affect product quality; most U.S.-sold flowers are grown abroad, primarily in Colombia, Ecuador and Holland.
Management's outlook
The 10-K does not provide fiscal 2027 revenue or EPS guidance. It states that the Company expects to borrow under its revolving credit facility for pre-holiday inventory and manufacturing needs and expects to repay those borrowings before the end of fiscal Q2 2027. Quantitative fiscal 2027 outlook was provided in the September 10, 2026 earnings release rather than this filing.
Earlier filings 4
10-K · September 6, 2024
1-800-FLOWERS.COM positions itself as a leading e-commerce platform for thoughtful gifting, generating more than $1.8 billion in revenue and addressing a total addressable market of ~ $130 billion. The company…
10-Q · February 10, 2023
1-800-FLOWERS.COM reported Q2 net revenues of $897,877,000 and diluted EPS of $1.27. Revenue and gross profit declined modestly versus the prior-year quarter, while operating income remained essentially flat and the…
10-Q · May 6, 2022
1-800-Flowers reported Q3 net revenue of $469,576,000 (down from $474,234,000 a year earlier) and a Q3 operating loss of $26,256,000 versus an operating loss of $309,000 in the prior-year quarter. The company generated…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.