The following is a summary of the 1-800-FLOWERS.COM, Inc. (FLWS) Q1 2025 Earnings Call Transcript:
Financial Performance:
1-800-FLOWERS.COM reported a 10% decrease in consolidated Q1 revenue, aligning with expectations and mirroring previous quarter trends.
E-commerce revenue decreased by 8%, with a 6.5% decline in orders and a 1.5% decrease in Average Order Value (AOV).
The company experienced a gross profit margin increase to 38.1%, and successfully reduced operating expenses by $4.3 million excluding certain non-recurring items.Adjusted EBITDA for the quarter was reported as a loss of $27.9 million.
Business Progress:
Continuing to leverage last mile delivery capabilities, expanding offerings particularly in same-day delivery for Cheryl's Cookies and 1-800 Baskets, while integrating Scharffen Berger Chocolates into Harry & David.
Announced a strategic partnership with Macy's, opening six exclusive Harry & David pop-up shops for the holiday season in select Macy's stores.
Developed a new AI-driven platform for customer care to enhance customer service efficiency and experience, alongside a logistics optimization effort through a new Order Management System at Harry & David.
Opportunities:
Plans deepening of Relationship Innovation initiatives during the holiday season viewed as essential by consumers, expected to drive better performance especially within Gourmet Foods & Gifts.
Expansion into new markets and broadening of product ranges tailored across various pricing tiers.
Risks:
Potential impacts of broader economic factors such as persistent inflation affecting consumer discretionary spending.
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