1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to inspire customers to give more, connect more, and build more meaningful relationships. Founded in 1976, the company has a rich history of innovation and resilience, navigating through various challenges to emerge as a premier player in the floral, gourmet foods, and gift basket industries.
Business Overview and History
1-800-FLOWERS.COM started as a single floral shop in New York, founded by Jim McCann. Over the years, the company has transformed itself from a traditional brick-and-mortar florist into a diversified e-commerce and multi-brand retailer. The company expanded to a network of retail stores across the United States, establishing a strong physical presence before venturing into the world of telecommunications and e-commerce.
A significant milestone in the company's history came in 1992 when it launched its 1-800-FLOWERS toll-free number. This innovative approach allowed customers nationwide to easily order flowers and gifts via telephone, extending the company's reach beyond its local markets and setting the stage for its subsequent expansion into the digital realm.
In the late 1990s, 1-800-FLOWERS.COM embraced the emerging e-commerce trend, launching its website and becoming one of the early movers in the online floral and gifting space. This proved to be a successful strategy, with online orders becoming a major driver of the company's growth. The company's e-commerce platform and multi-channel distribution model have allowed it to reach a wide customer base, offering a comprehensive suite of gifting solutions.
Over the next two decades, 1-800-FLOWERS.COM continued to expand its e-commerce capabilities and product offerings through strategic acquisitions. The company added several complementary brands to its portfolio, including Cheryl's Cookies, Harry & David, and Wolferman's, further diversifying its product offerings and strengthening its position in the gourmet foods and gift basket markets.
The company faced challenges during the 2008 financial crisis, which impacted consumer spending on discretionary items like flowers and gifts. However, 1-800-FLOWERS.COM successfully navigated through this downturn by focusing on cost controls and enhancing its e-commerce platform. In the early 2010s, the company also had to adapt to changes in the online marketing landscape, as search engine algorithms and social media platforms altered the way businesses reach customers.
Today, 1-800-FLOWERS.COM operates a diversified portfolio of consumer floral, gourmet food, and gift brands, serving customers through its e-commerce, telephone, and retail channels. The company has established itself as a leading provider of gifts and celebratory products, with a strong focus on building lasting customer relationships through its Celebrations Passport loyalty program and other innovative initiatives.
Financial Performance and Liquidity
1-800-FLOWERS.COM has experienced mixed financial performance in recent years. For the fiscal year 2024, the company reported annual revenue of $1.83 billion, with a net loss of $6.11 million. The company generated $95 million in annual operating cash flow and $56.37 million in annual free cash flow.
In the most recent quarter (Q2 2025), 1-800-FLOWERS.COM reported revenue of $775.49 million, representing a 5.7% decrease compared to the same period in the previous year. However, net income increased by 2.3% to $64.35 million. The revenue decline was attributed to softer than anticipated consumer demand and reduced corporate gifting orders. Additionally, the company faced challenges with the implementation of a new order management system for the Harry & David brand, which negatively impacted revenue by an estimated $20 million.
The company's liquidity position remains relatively strong, with a current ratio of 1.51 and a quick ratio of 1.03 as of December 29, 2024. Cash and cash equivalents stood at $247.22 million, providing the company with the necessary resources to fund its ongoing operations and strategic initiatives. The company also has access to a $225 million revolving credit facility, with no amounts outstanding as of December 29, 2024.
1-800-FLOWERS.COM's debt-to-equity ratio is 0.67, with total debt of $309.49 million and stockholders' equity of $466.34 million. This indicates a relatively balanced capital structure, allowing the company to maintain financial flexibility while pursuing growth opportunities.
Business Segments and Performance
1-800-FLOWERS.COM operates through three main business segments: Consumer Floral & Gifts, BloomNet, and Gourmet Foods & Gift Baskets.
The Consumer Floral & Gifts segment includes the operations of the 1-800-Flowers.com, PersonalizationMall, Things Remembered, and Alice's Table brands. This segment experienced a decrease in net revenues of 8.0% and 6.9% during the three and six months ended December 29, 2024, respectively, compared to the same periods in the prior year. The decline was attributed to continued macroeconomic pressures and increased use of promotional offerings in the competitive environment. E-commerce orders declined by 7.3% and 5.8% during the three and six-month periods, while the average order value decreased by 0.8% and 1.1%, respectively, due to a shift towards lower-priced items and higher promotions.
The BloomNet segment, which derives revenue from membership fees and product and service offerings, saw a 16.2% and 18.2% decrease in net revenues during the three and six months ended December 29, 2024, compared to the prior year periods. This decline was primarily due to lower service revenues resulting from a decrease in order volume processed through the BloomNet network.
The Gourmet Foods & Gift Baskets segment includes brands such as Harry & David, Wolferman's, Cheryl's Cookies, The Popcorn Factory, 1-800-Baskets, Shari's Berries, Vital Choice, and Scharffen Berger (acquired on July 1, 2024). Net revenues for this segment decreased by 4.0% and 5.6% during the three and six-month periods ended December 29, 2024, compared to the prior year. This decline was due to lower e-commerce revenues impacted by decreased demand, partially offset by increased wholesale volumes.
Overall, the company reported a 5.7% and 6.7% decrease in total net revenues during the three and six months ended December 29, 2024, respectively, compared to the same periods in the prior year. Gross profit decreased by 5.7% and 6.5% in the three and six-month periods, in line with the revenue decline. However, the company's gross profit margins remained relatively stable, increasing by 20 basis points during the six-month period due to improved performance in the BloomNet and Gourmet Foods & Gift Baskets segments.
Navigating Challenges and Adapting to Changing Consumer Trends
1-800-FLOWERS.COM has faced its share of challenges in recent years, including the impact of the COVID-19 pandemic and broader shifts in consumer behavior and preferences. The company has responded by accelerating its digital transformation and investing in its Relationship Innovation initiatives, which focus on enhancing customer engagement and building deeper relationships.
One of the key challenges the company has encountered is the normalization of pandemic-driven demand, as consumers have returned to their pre-COVID shopping habits. This shift has resulted in a decline in e-commerce revenues, which decreased by 8.3% in the second quarter of fiscal year 2025 compared to the same period in the prior year.
To address these changes, 1-800-FLOWERS.COM has been focused on broadening its product offerings and price points to cater to a wider range of customer preferences. The company has also placed a greater emphasis on its wholesale and corporate gifting segments, which have seen increased demand as the economy has recovered.
Furthermore, the company has faced operational challenges related to the implementation of a new order management system for its Harry & David brand. These issues had a temporary impact on the company's financial performance, reducing Q2 2025 e-commerce revenue by approximately $20 million and impacting Q2 2025 EBITDA by approximately $6.3 million. Management has stated that they are working to resolve the underlying problems and prevent similar disruptions in the future.
Outlook and Future Initiatives
Looking ahead, 1-800-FLOWERS.COM is focused on executing its Relationship Innovation strategy, which aims to deepen customer engagement and foster more meaningful connections. This includes leveraging advanced technologies, such as artificial intelligence and personalization tools, to provide tailored content and recommendations to its customers.
The company has also been actively exploring strategic acquisitions and partnerships to further expand its product portfolio and customer reach. Recent examples include the acquisitions of Scharffen Berger, a specialty chocolate manufacturer, and Card Isle, an e-commerce greeting card company.
In light of the challenges faced in Q2 2025, 1-800-FLOWERS.COM has updated its fiscal 2025 outlook. The company now expects full fiscal year 2025 revenue to decline in the mid-single digits. Adjusted EBITDA is projected to be in the range of $65 million to $75 million, while free cash flow is expected to be between $25 million and $35 million.
While the company faces ongoing challenges in the current macroeconomic environment, 1-800-FLOWERS.COM remains committed to adapting and innovating to meet the evolving needs of its customers. With its strong brand recognition, diverse product offerings, and digital capabilities, the company is working to navigate the changing retail landscape and improve its growth trajectory.
Conclusion
1-800-FLOWERS.COM's rich history and adaptability have allowed it to evolve from a single floral shop to a leading multi-brand gift and gourmet foods retailer. Despite facing recent headwinds, including softer consumer demand and operational challenges, the company's focus on Relationship Innovation, product diversification, and operational efficiency positions it to address the shifting consumer landscape. As the company works to overcome its recent setbacks and implement its strategic initiatives, it aims to deliver long-term value for its shareholders in an increasingly competitive and dynamic market.