gross margin is continuing its reversion to the mean, improving 300 basis points to 36.6%.
— Bill Shea
03Detailed Report
FLWS
Company FLWS
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
1800FLOWERSCOM reported QQ3 2024 revenue of $379.4 million, down 9.1% year over year as mix-shifting consumer behavior and softer wholesale/BloomNet contributions weighed on the top line. The company continued its margin recovery trajectory, delivering an adjusted EBITDA loss of $5.7 million, roughly in line with the prior year, as it benefits from Work Smarter initiatives and commodity cost reversion. Management reinforced its commitment to portfolio expansion and pricing discipline, highlighting strong AOV uplift and continued growth in bundled offerings across its family of brands. Cost actions, including a program to reduce full-time headcount, are projected to yield more than $10 million in annual savings, with severance of $2.4 million recognized in the quarter. The company reaffirmed full-year guidance, projecting a total revenue decline of 7-9%, adjusted EBITDA of $95-100 million, and free cash flow of $60-65 million. Net cash position remained solid, with cash approx. $184 million at quarter-end, and a net debt position reflective of largely fixed debt with a deriveable cash balance. In sum, FLWS is navigating a challenging macro backdrop with a clear multi-brand, multi-channel strategy focused on higher-margin bundles, enhanced same-day capabilities via BloomNet, and selective tuck-in acquisitions to bolster capabilities and customer engagement.
Key Performance Indicators
Revenue
Decreasing
379.41M
QoQ: -53.85% | YoY: -4.86%
Gross Profit
Decreasing
125.49M
33.07% margin
QoQ: -64.72% | YoY: -15.13%
Operating Income
Decreasing
-27.93M
QoQ: -130.61% | YoY: -15.73%
Net Income
Increasing
-16.90M
QoQ: -126.87% | YoY: 25.03%
EPS
Increasing
-0.26
QoQ: -126.80% | YoY: 25.71%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability dynamics
- Third quarter revenue: $379.405 million, down 9.1% YoY and down 53.85% QoQ (Q2 2024 revenue was $822.054 million).
- Gross profit: $125.485 million; gross margin 33.07% (gross profit margin). YoY gross profit down 15.13%; QoQ down 64.72%.
- Operating income: -$27.929 million; operating margin -7.36%. QoQ deterioration of roughly 130.61% in operating margin; YoY change not explicitly stated in the data.
- Net income: -$16.903 million; net margin -4.46%. YoY net income up 25.03% but QoQ down 126.87% due to higher operating costs and non-cash charges in the prior year.
- EPS (diluted): -$0.26; YoY EPS up ~25.71%; QoQ down ~126.80%.
- Adjusted EBITDA: -$5.7 million, essentially flat vs prior year; reflects margin recovery from cost actions and commodity tailwinds despite revenue softness.
- AOV (average order value): $79, up ~1.5% YoY, aided by higher-priced bundles and premium offerings.
Segment performance and margin refinement
- Gourmet Food & Gift Baskets: revenue $131.0 million, down 11.4% YoY; gross margin 29.9% (+5.3pp YoY); adjusted segment contribution margin loss improved by $6.3 million to -$7.6 million (excluding severance and prior-year impairment).
- Consumer Floral & Gifts: revenue $221.2 million, down 5.1% YoY; gross margin 39.3% (+1.4pp YoY); segment contribution margin $22.8 million (excluding severance) versus $26.1 million in the prior year.
- BloomNet: revenue $27.3 million, down 26.1% YoY; gross margin 45.4% (+2.9pp YoY); segment contribution margin $7.6 million (excluding severance) versus $11.0 million prior year.
Cash flow and balance sheet
- Cash and cash equivalents: approximately $184 million at end of Q3.
- Total debt: about $312.6 million; net debt around $128.6 million (cash ~$184 million minus total debt).
- Inventory: $159.5 million (down from $191.9 million year-ago Q3).
- Working capital dynamics contributed to cash outflow: net cash provided by operating activities -$112.7 million; free cash flow -$121.4 million (reflecting working capital needs).
- Liquidity metrics: current ratio 1.89; quick ratio 1.13; cash ratio 0.88.
- Share repurchases: $9.2 million spent on repurchases in first three quarters (roughly 948k shares at $9.68).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
379.41M
-4.86%
-53.85%
Gross Profit
125.49M
-15.13%
-64.72%
Operating Income
-27.93M
-15.73%
-130.61%
Net Income
-16.90M
25.03%
-126.87%
EPS
-0.26
25.71%
-126.80%
Key Financial Ratios
Gross Profit Margin
Fair
33.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.07%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.04%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.89
Current ratio shows adequate liquidity to meet short-term obligations