1-800-FLOWERS.COM, Inc.

Consolidated fourth-quarter revenue declined 12.9% to $293.1 million, and full-year revenue declined 10.8% to $1.5 billion. Q4 adjusted gross margin was 34.7% versus 35.5% in the prior year period, and full-year adjusted gross margin was 38% versus 39.1%. Q4 adjusted EBITDA was a loss of $31 million versus a loss of $24.2 million, while full-year adjusted EBITDA was $2.9 million versus $29.2 million last year. At year-end, cash was $11 million, net debt was $128 million, term debt was $139 million, inventory was $153 million, and free cash flow improved by $55 million versus the prior year. For fiscal 2027, the company expects revenue to decline in the mid-single-digit range and adjusted EBITDA to be $10 million-$15 million, including about $12 million of additional variable compensation expense versus fiscal 2026. Management said the revenue outlook does not assume any incremental benefit from investments funded through the capital-raising process or potential divestitures.

Adolfo Villagomez framed fiscal 2026 as a year of rebuilding the foundation: strengthening leadership, simplifying the organization, modernizing digital and marketing capabilities, and creating clearer accountability across the customer journey. He emphasized a shift to function-based teams, more customer-first merchandising, and a redesigned Harry & David website with mobile-first design, improved navigation, AI-powered search, and A/B testing. His tone was constructive and candid: revenue trends remain challenged, but he said the company is now better positioned to translate its investments into improving performance over time.

James Langrock focused on liquidity, capital structure, and the math behind guidance. He said the amended credit agreement extends covenant relief and gives flexibility to retain some asset-sale proceeds for reinvestment, while Guggenheim Securities has been retained to help evaluate debt, equity, divestitures, and other capital structure options. On results, he cited Q4 adjusted gross margin of 34.7%, full-year adjusted gross margin of 38%, Q4 adjusted EBITDA of a $31 million loss, and the full-year $2.9 million adjusted EBITDA result. He also highlighted $50 million of run-rate cost savings achieved ahead of plan, another $15 million-$20 million of opportunities expected to be executed in fiscal 2027, cash of $11 million, and net debt of $128 million.

Analysts pressed on the fiscal 2027 EBITDA bridge, the Easter shift in Gourmet Foods, gross margin pressure, the credit-facility amendment, marketplace partnerships, Mother's Day, marketing productivity, the sales cadence through the year, and possible divestitures. Management said the $10 million-$15 million EBITDA guide starts from $2.9 million adjusted EBITDA and is helped by the full benefit of the $50 million cost savings, offset by mid-single-digit revenue declines, reinvestment in marketing and digital, and about $12 million of incremental variable compensation. They said the Easter timing reduced Gourmet Foods revenue by about 2.5-3.5 percentage points in that segment and about 1.5% of total quarterly revenue, and that marketplaces like Amazon, DoorDash, Instacart, and Uber Eats are growing rapidly from a small base with little cannibalization. On sales cadence, they said revenue decline should moderate as 2027 progresses, though not linearly quarter to quarter.