1-800-Flowers Earnings Report: Cost Cuts Drive Profit Beat Amid Revenue Decline
07.02.2026 - 22:00:04
The latest quarterly results from 1-800-Flowers.com, Inc. delivered a significant earnings surprise, as aggressive cost management helped the company overcome a notable drop in sales. While revenue fell year-over-year, disciplined spending measures provided a substantial boost to the bottom line, raising questions about the sustainability of this strategy in the face of persistent softness in core demand.
Key Financial Metrics (Fiscal Q2 2026):
* Earnings Per Share (EPS): $1.20, surpassing analyst expectations of $0.86.
* Total Revenue: $702.2 million, slightly above the anticipated $700.6 million but representing a 9.5% decrease compared to the same period last year.
A closer look at the company's business segments reveals the challenges behind the headline numbers. The performance was mixed, with the flagship Consumer Floral & Gifts division experiencing a severe contraction, with revenue plunging 22.7%. The Gourmet Food and Gift Baskets segment saw a more modest decline of 3.8%, and the BloomNet wire service revenue dipped by 3.1%. Furthermore, the company's gross margin contracted by 120 basis points to 42.1% versus the prior-year quarter.
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Efficiency Gains Offset Top-Line Weakness
In response to these headwinds, management has implemented a rigorous cost-reduction program. To date in fiscal 2026, the initiative has yielded approximately $15 million in annualized savings. The company has set a target to increase these cumulative savings to $50 million by the end of fiscal 2027. These efficiency gains were the primary driver behind the leap in EPS to $1.20. For the second quarter, adjusted EBITDA came in at $98.1 million, down from $116.3 million a year ago.
Looking ahead, the company's guidance anticipates continued pressure. For the second half of the fiscal year, revenue is projected to decline in the low double-digit percentage range. However, management expects adjusted EBITDA to show a slight improvement year-over-year, supported by the ongoing operational efficiency measures.
A near-term logistical challenge is the upcoming Valentine's Day holiday, which falls on a Saturday this year. The company is preparing for a complex seasonal shipping and demand pattern as a result. 1-800-Flowers is scheduled to release its next quarterly earnings report on May 14, 2026.
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