Financial Loss And Revenue Drop
1-800-Flowers Reports $52.3M Loss as Sales Decline Amid Strategic Shift
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Key Points
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The fiscal-year net-loss improvement was largely an accounting effect: the prior year included a $143.8 million noncash goodwill and intangible-asset write-down, while fiscal 2026 included a $45.2 million charge. Excluding those charges, adjusted net loss widened from $52.5 million to $77.5 million.
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Free cash flow improved substantially, to negative $13.0 million in fiscal 2026 from negative $67.8 million a year earlier, helped by lower spending and reduced inventory, although it remained negative.
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The company’s quarterly gross-profit margin fell to 34.7% from 35.5%, even as operating expenses declined by $16.7 million to $158.2 million.
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Revenue fell 13.4% in Consumer Floral & Gifts and 15.4% in Gourmet Foods & Gift Baskets; the latter decline was partly affected by the timing of Easter, while BloomNet revenue increased 1.9%.
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The company’s shares fell 12.89% to $3.04 in premarket Nasdaq trading after the fiscal 2027 outlook was released.
1-800-Flowers reported a $52.3 million net loss for fiscal fourth-quarter 2026, as revenue fell 12.9% to $293.1 million. MarketScreener The company's balance sheet weakened further when adjusted EBITDA swung to a $31 million loss from a $24.2 million loss a year prior. Management cut costs but struggled to offset a strategic shift away from spending that hurt sales across its core flower and gourmet food businesses.
The stock fell 12.89% to $3.04 in premarket trading after the company guided for mid-single-digit revenue declines in fiscal 2027. Yahoo Finance Still, management projects adjusted EBITDA of $10 million to $15 million next year — a notable turnaround if achieved — though it includes $12 million in additional compensation costs.
Core Businesses Contracted Sharply in Q4
Consumer Floral & Gifts revenue dropped 13.4%, while Gourmet Foods & Gift Baskets fell 15.4%. MarketScreener The gourmet decline partly reflected Easter timing shifts. BloomNet, the company's floral network service, was the sole bright spot with a 1.9% revenue bump. Gross profit margin contracted to 34.7% from 35.5% despite $16.7 million in operating expense cuts.
Accounting Gains Mask Underlying Deterioration
The company's net loss improved to $52.3 million from $107.6 million — but mostly due to smaller noncash asset write-downs. GuruFocus Fiscal 2026 included a $45.2 million charge versus a $143.8 million goodwill write-down the prior year. Strip those charges out and adjusted net loss actually widened to $77.5 million from $52.5 million, showing the core business got worse.
Cash Burn Slowed But Remains Negative
Free cash flow improved to negative $13 million from negative $67.8 million, helped by lower spending and reduced inventory. MarketScreener For the full fiscal year, revenue slid 10.8% to $1.50 billion and adjusted EBITDA hit just $2.9 million. While the cash trend turned less dire, the company still burned cash and faces a long road back to profitability in a weakening consumer environment.
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