1-800-FLOWERS.COM — Fiscal 2026 Earnings Summary

Financial Performance

• Total consolidated revenue for Fiscal 2026 was $1.50 billion, a 10.8% decrease from $1.69 billion in the prior year; Q4 2026 revenue was $293.1 million, a 12.9% decrease year-over-year.
• Net loss for Fiscal 2026 was $134.8 million ($2.11 per diluted share), including a $45.2 million non-cash goodwill and intangible impairment charge; Q4 2026 net loss was $52.3 million ($0.82 per diluted share).
• Adjusted net loss for Fiscal 2026 was $77.5 million ($1.21 per diluted share), compared to $52.5 million ($0.82 per share) in the prior year; Q4 2026 adjusted net loss was $51.6 million ($0.80 per share).
• Adjusted EBITDA for Fiscal 2026 was $2.9 million, down from $29.2 million in the prior year; Q4 2026 adjusted EBITDA loss was $31.0 million.
• Gross profit margin for Fiscal 2026 decreased 70 basis points to 38.0% (38.7% prior year); Q4 2026 margin decreased 80 basis points to 34.7% (35.5% prior year).
• Operating expenses for Fiscal 2026 decreased $158.6 million to $698.5 million; Q4 2026 operating expenses decreased $16.7 million to $158.2 million.
• Cash and cash equivalents ended Fiscal 2026 at $11.4 million, down from $46.5 million at the end of the prior year.
• Free cash flow for Fiscal 2026 was $(12.972) million, compared to $(67.826) million in the prior year.
• Long-term debt, net, decreased to $112.2 million from $134.8 million in the prior year; current maturities of long-term debt increased to $24.0 million from $21.0 million.

Guidance and Future Outlook

• For Fiscal 2027, the Company expects net revenues to decline in the mid-single digit range compared to Fiscal 2026.
• Fiscal 2027 adjusted EBITDA is expected to be between $10 million and $15 million, which includes approximately $12 million of additional compensation expense versus Fiscal 2026.
• The Company plans to reinvest a significant portion of cost savings from operational efficiency initiatives into strategic growth investments, including marketing modernization, technology platform development, and digital customer experience enhancements.

Business Segments and Product Lines

• Consumer Floral & Gifts: Fiscal 2026 revenue decreased 17.7% to $638.9 million; Q4 2026 revenue decreased 13.4% to $182.8 million. Gross margin increased 10 basis points to 39.4% for the full year and 220 basis points to 40.7% for the quarter.
• Gourmet Foods & Gift Baskets: Fiscal 2026 revenue decreased 5.2% to $768.5 million; Q4 2026 revenue decreased 15.4% to $85.8 million. Gross margin decreased 130 basis points to 35.5% for the full year and 830 basis points to 17.7% for the quarter.
• BloomNet: Fiscal 2026 revenue decreased 1.9% to $96.8 million; Q4 2026 revenue increased 1.9% to $24.7 million. Gross margin decreased 10 basis points to 48.4% for the full year and increased 190 basis points to 48.8% for the quarter.

Market and Competitive Landscape

• The Company is executing a strategic shift to improve marketing effectiveness and profitability, resulting in lower sales volumes but improved operational focus.
• Management identified the recovery of revenue trends as the highest priority for Fiscal 2027.

Risks and Challenges

• Fiscal 2026 results included significant non-cash impairment charges ($45.2 million in 2026 vs. $143.8 million in 2025).
• The Company faces deleveraging impacts on sales declines, higher commodity costs, and inventory reserves affecting gross margins.
• The Company is evaluating capital raising options and potential divestitures of non-strategic assets to optimize capital structure.

Management Commentary and Tone

• CEO Adolfo Villagomez described Fiscal 2026 as a year of "meaningful progress" focused on strengthening the business foundation, modernizing digital/marketing capabilities, and becoming a more customer-first, data-driven organization.
• Management emphasized that while the foundation is strengthened, accelerating revenue recovery is the top priority for Fiscal 2027.
• The Company amended its credit agreement to extend covenant relief and enhance financial flexibility.

Other Key Points

• The Company retained Guggenheim Securities, LLC as its financial advisor to evaluate capital raising options, which may include public or private debt/equity financings or asset divestitures.
• A conference call to discuss results was held on September 10, 2026, at 8:00 a.m. ET.
• The Company reported a $7 million benefit related to tariff refunds in Q4 2026.
• Goodwill on the balance sheet decreased significantly from $37.6 million in 2025 to $3.1 million in 2026 due to the impairment charge.