1-800-FLOWERS.COM Clocks 17.9% Dip In Q4 Topline, Forecasts Revenue To Rebound During Holiday Period

1-800-FLOWERS.COM, Inc. FLWS reported Q4 revenues of $398.81 million, missing the consensus of $413.31 million. Revenues slumped 17.9% Y/Y.

The company reported adjusted EPS of $(0.28) per share, beating the consensus of $(0.32) loss.

Segments: Gourmet Foods and Gift Baskets revenues declined 18.7% to $120.7 million, Consumer Floral & Gifts fell 17% to $248.3 million, and BloomNet revenues decreased 22.1% to $30 million.

The gross profit margin increased 340 basis points to 37.1%, thanks to lower ocean freight costs, the company's strategic pricing initiatives, and a decline in certain commodity costs.

Also Read: 1-800-FLOWERS.COM Bolsters Corporate Gifting Capabilities Via SmartGift Deal

Adjusted EBITDA for the quarter was a loss of $(6.6) million, narrower than the loss of $(16.8) million in the prior year period.

The company exited the quarter with cash and equivalents worth $126.80 million.

"As we look beyond the current horizon, we believe that the actions we have taken to enhance the customer experience, improve margins, and optimize expenses, combined with an improved consumer environment, will enable us to achieve our historical sales growth, gross profit margin and adjusted EBITDA margin rates," Jim McCann, Chairman and Chief Executive Officer said.

Guidance: FLWS expects FY24 total revenues on a percentage basis to decline in the mid-single digits compared to the prior year.

Adjusted EBITDA in FY24 is expected to be $95 million-$100 million. Free Cash Flow is projected to be $60 million-$65 million.

For FY24, the company expects revenues to remain pressured by a challenging consumer environment early in the year, but rebound during the holiday period and into the second half of the fiscal year. The company also expects continued improvement in gross margin.

Price Action: FLWS shares are trading higher by 5.87% to $7.39 premarket on the last check Thursday.