1-800-FLOWERS.COM, Inc. — Fiscal 2027 First Quarter Earnings Summary

Financial Performance:

• Total consolidated revenues decreased 11.1% year-over-year to $171.4 million.
• Net loss from continuing operations was $50.6 million ($0.79 per diluted share), compared to a net loss of $49.0 million ($0.77 per share) in the prior year period.
• Adjusted net loss from continuing operations was $49.8 million ($0.78 per diluted share), compared to $49.0 million ($0.77 per share) in the prior year.
• Adjusted EBITDA loss from continuing operations was $31.9 million, compared to a loss of $31.7 million in the prior year.
• Gross profit margin decreased 120 basis points to 34.1% from 35.3% in the prior year period.
• Operating expenses decreased $10.3 million year-over-year to $105.0 million; excluding non-recurring charges and non-qualified deferred compensation plan impacts, expenses decreased $10.6 million to $102.3 million.
• Net cash used in operating activities from continuing operations was $126.1 million, compared to $130.9 million in the prior year.
• Capital expenditures were $3.7 million, compared to $5.6 million in the prior year.
• Free cash flow was $(129.8) million, compared to $(136.5) million in the prior year.
• Cash and cash equivalents ended the quarter at $9.4 million, down from $11.4 million at the beginning of the period.
• Current maturities of long-term debt increased to $185.7 million from $24.0 million in the prior period.
• Long-term debt, net, decreased to $81.6 million from $112.2 million in the prior period.

Guidance and Future Outlook:

• Updated fiscal 2027 outlook reflects the divestiture of PersonalizationMall.com and Things Remembered and the reinvestment of proceeds into revenue-generating initiatives.
• For fiscal 2027, the Company expects total revenues to decline between 2% and 5%.
• For fiscal 2027, the Company expects Adjusted EBITDA to be approximately $10 million to $15 million.

Business Segments and Product Lines:

• E-Commerce segment revenues declined 12.3% to $128.4 million, reflecting weakness in other websites and B2B operations, partially offset by improving demand trends on primary websites.
• Wholesale and Other segment revenues decreased 10.7% to $20.5 million.
• BloomNet segment revenues decreased 3.6% to $22.3 million.
• Primary websites (1-800-Flowers.com and Harry & David) showed improving net order demand trends and a moderation in the pace of year-over-year declines.
• Net Order Demand for primary brands in Q1 2027 was $105.2 million, a decrease of 8.0% from $114.3 million in Q1 2026.
• Net Order Demand for other websites in Q1 2027 was $15.5 million, a decrease of 36.0% from $24.2 million in Q1 2026.
• Total Net Order Demand for Q1 2027 was $120.7 million, a decrease of 12.9% from $138.5 million in Q1 2026.
• The Company revised its reportable segment structure to E-Commerce, Wholesale and Other, and BloomNet, replacing previous Consumer Floral & Gifts and Gourmet Foods & Gift Baskets segments.

Market and Competitive Landscape:

• The Company focuses on strengthening its primary websites, 1-800-Flowers.com and Harry & David, which represent the greatest opportunity to improve overall performance.
• Management notes continued weakness across the Company's other websites and B2B operations.
• The Company is simplifying its business and optimizing its capital structure.

Risks and Challenges:

• Gross profit margin was negatively impacted by lower sales volume, higher fuel surcharges, and promotional strategy testing.
• The Company faces challenges in driving purchase frequency and retaining customers cost-effectively.
• Forward-looking statements are subject to risks including general consumer sentiment, industry and economic conditions affecting discretionary purchases, and the ability to successfully execute strategic priorities.
• The Company incurred a net loss from a fire event of $750,000 in the quarter.

Management Commentary and Tone:

• CEO Adolfo Villagomez stated the Company entered fiscal 2027 with a priority on strengthening primary websites and observed encouraging signs of progress, including improving net order demand trends.
• CFO James Langrock highlighted progress in simplifying the business, strengthening the financial position, and optimizing the capital structure through asset sales.
• Management indicated that while the transformation is in early stages, initiatives are beginning to take hold.

Other Key Points:

• The Company completed the sale of PersonalizationMall.com and Things Remembered during the fiscal second quarter.
• The Company entered into an agreement to sell its Jacksonville, FL facility for approximately $10 million, subject to due diligence and closing conditions.
• Proceeds from the Jacksonville facility sale are expected to support debt reduction and strategic investments.
• The Company updated its segment reporting structure to better align with its operating model and management evaluation.
• The Company now provides a breakdown of net order demand trends between primary websites and other websites.
• Transaction costs of $54,000 were recorded in the quarter.
• The Company conducted a conference call on November 5, 2026, to discuss results.