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The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. 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Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 29, 2024

 

or 

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

 

Commission File No. 0-26841

qlinearlogforcover20percent.jpg

 

1-800-FLOWERS.COM, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

11-3117311

(State of incorporation)

(I.R.S. Employer Identification No.)

Two Jericho Plaza, Suite 200, Jericho, NY 11753

(516) 237-6000

(Address of principal executive offices) (Zip code)

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Class A common stock

FLWS

The Nasdaq Stock Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐         

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☑   No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

☐Large accelerated filer

☑Accelerated filer

☐Non-accelerated filer

☐Smaller reporting company

 

☐Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☑

 

The number of shares outstanding of each of the Registrant’s classes of common stock as of January 24, 2025:

 

Class A common stock: 36,532,944

Class B common stock: 27,068,221

 

 
Table of Contents

   

 

1-800-FLOWERS.COM, Inc.

FORM 10-Q

For the quarterly period ended December 29, 2024

TABLE OF CONTENTS

 

   

Page

Part I.

Financial Information

  

Item 1.

Condensed Consolidated Financial Statements

1
 

Condensed Consolidated Balance Sheets – December 29, 2024 (Unaudited) and June 30, 2024

1
 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) – Three and Six Months Ended December 29, 2024 and December 31, 2023

2
 

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) – Three and Six Months Ended December 29, 2024 and December 31, 2023

3
 

Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months Ended December 29, 2024 and December 31, 2023

5
 

Notes to Condensed Consolidated Financial Statements (Unaudited)

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34
     

Part II.

Other Information

34

Item 1.

Legal Proceedings

34

Item 1A.

Risk Factors

34

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 3.

Defaults upon Senior Securities

35

Item 4.

Mine Safety Disclosures

35

Item 5.

Other Information

35

Item 6.

Exhibits

36
     

Signatures

37

 

 
Table of Contents
 

PART I. – FINANCIAL INFORMATION

 

ITEM 1. – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except for share data)

 

  

December 29, 2024

  

June 30, 2024

 
  

(unaudited)

     

Assets

        

Current assets:

        

Cash and cash equivalents

 $247,220  $159,437 

Trade receivables, net

  61,352   18,024 

Inventories

  157,438   176,591 

Prepaid and other

  26,884   31,680 

Total current assets

  492,894   385,732 
         

Property, plant and equipment, net

  223,178   223,789 

Operating lease right-of-use assets

  110,455   113,926 

Goodwill

  156,648   156,537 

Other intangibles, net

  115,079   116,216 

Other assets

  39,516   36,448 

Total assets

 $1,137,770  $1,032,648 
         

Liabilities and Stockholders' Equity

        

Current liabilities:

        

Accounts payable

 $113,588  $80,005 

Accrued expenses

  193,558   121,303 

Current maturities of long-term debt

  -   10,000 

Current portion of long-term operating lease liabilities

  18,490   16,511 

Total current liabilities

  325,636   227,819 
         

Long-term debt, net

  157,474   177,113 

Long-term operating lease liabilities

  102,038   105,866 

Deferred tax liabilities, net

  17,905   19,402 

Other liabilities

  39,610   36,106 

Total liabilities

  642,663   566,306 
         

Commitments and contingencies (See Note 13)

          
         

Stockholders' equity:

        

Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued

  -   - 

Class A common stock, $0.01 par value, 200,000,000 shares authorized, 59,281,253 and 58,792,695 shares issued at December 29, 2024 and June 30, 2024, respectively

  593   588 

Class B common stock, $0.01 par value, 200,000,000 shares authorized, 32,348,221 shares issued at December 29, 2024 and June 30, 2024

  323   323 

Additional paid-in capital

  405,450   399,165 

Retained earnings

  295,136   264,978 

Accumulated other comprehensive loss

  (127)  (127)

Treasury stock, at cost, 22,596,217 and 21,645,290 Class A shares at December 29, 2024 and June 30, 2024, respectively and 5,280,000 Class B shares at December 29, 2024 and June 30, 2024

  (206,268)  (198,585)

Total stockholders’ equity

  495,107   466,342 

Total liabilities and stockholders’ equity

 $1,137,770  $1,032,648 

 

See accompanying Notes to Condensed Consolidated Financial Statements. 

 

1
Table of Contents
 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except for per share data)

(unaudited)

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
                                 

Net revenues

   $ 775,492     $ 822,054     $ 1,017,582     $ 1,091,104  

Cost of revenues (excludes depreciation and amortization)

     439,899       466,357       589,670       633,479  

Gross profit

     335,593       355,697       427,912       457,625  

Operating expenses:

                                

Marketing and sales

     187,003       188,557       269,100       271,075  

Technology and development

     15,973       14,822       31,612       30,126  

General and administrative

     27,410       27,154       55,936       55,643  

Depreciation and amortization

     14,130       14,152       27,168       27,346  

Intangible impairment

     -       19,762       -       19,762  

Total operating expenses

     244,516       264,447       383,816       403,952  

Operating income

     91,077       91,250       44,096       53,673  

Interest expense, net

     4,396       4,611       7,756       8,093  

Other income, net

     (1,164 )     (2,736 )     (2,931 )     (2,262 )

Income before income taxes

     87,845       89,375       39,271       47,842  

Income tax expense

     23,497       26,468       9,113       16,177  

Net income and comprehensive net income

     64,348       62,907       30,158       31,665  
                                 

Basic net income per common share

   $ 1.01     $ 0.97     $ 0.47     $ 0.49  
                                 

Diluted net income per common share

   $ 1.00     $ 0.97     $ 0.47     $ 0.49  
                                 

Weighted average shares used in the calculation of net income per common share:

                                

Basic

     63,836       64,835       64,017       64,814  

Diluted

     64,306       65,177       64,501       65,155  

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

2
Table of Contents
 

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(in thousands, except share data)

(unaudited)

 

 

   

Three Months Ended December 29, 2024 and December 31, 2023

  
                                                   

Accumulated

                          
   

Common Stock

    

Additional

            

Other

                    

Total

  
   

Class A

    

Class B

    

Paid-in

    

Retained

    

Comprehensive

    

Treasury Stock

    

Stockholders’

  
   

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Earnings

    

Loss

    

Shares

    

Amount

    

Equity

  
                                                                                 

Balance at September 29, 2024

     58,798,430     $ 588       32,348,221     $ 323     $ 401,685     $ 230,788     $ (127 )     27,085,703     $ (199,840 )   $ 433,417  

Net income

     -       -       -       -       -       64,348       -       -       -       64,348  

Stock-based compensation

     466,301       5       -       -       3,624       -       -       -       -       3,629  

Exercise of stock options

     16,522       -       -       -       141       -       -       -       -       141  

Acquisition of Class A treasury stock

     -       -       -       -       -       -       -       790,514       (6,428 )     (6,428 )

Balance at December 29, 2024

     59,281,253     $ 593       32,348,221     $ 323     $ 405,450     $ 295,136     $ (127 )     27,876,217     $ (206,268 )   $ 495,107  
                                                                                 

Balance at October 1, 2023

     58,309,547     $ 583       32,348,221     $ 323     $ 390,579     $ 239,841     $ (170 )     25,856,358     $ (188,265 )   $ 442,891  

Net income

     -       -       -       -       -       62,907       -       -       -       62,907  

Stock-based compensation

     429,312       5       -       -       2,226       -       -       -       -       2,231  

Exercise of stock options

     5,110       -       -       -       44       -       -       -       -       44  

Acquisition of Class A treasury stock

     -       -       -       -       -       -       -       512,978       (4,713 )     (4,713 )

Balance at December 31, 2023

     58,743,969     $ 588       32,348,221     $ 323     $ 392,849     $ 302,748     $ (170 )     26,369,336     $ (192,978 )   $ 503,360  

 

3
Table of Contents

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(in thousands, except share data)

(unaudited)

 

   

Six Months Ended December 29, 2024 and December 31, 2023

  
                                                   

Accumulated

                          
   

Common Stock

    

Additional

            

Other

                    

Total

  
   

Class A

    

Class B

    

Paid-in

    

Retained

    

Comprehensive

    

Treasury Stock

    

Stockholders’

  
   

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Earnings

    

Loss

    

Shares

    

Amount

    

Equity

  
                                                                                 

Balance at June 30, 2024

     58,792,695     $ 588       32,348,221     $ 323     $ 399,165     $ 264,978     $ (127 )     26,925,290     $ (198,585 )   $ 466,342  

Net income

     -       -       -       -       -       30,158       -       -       -       30,158  

Stock-based compensation

     467,301       5       -       -       6,103       -       -       -       -       6,108  

Exercise of stock options

     21,257       -       -       -       182       -       -       -       -       182  

Acquisition of Class A treasury stock

     -       -       -       -       -       -       -       950,927       (7,683 )     (7,683 )

Balance at December 29, 2024

     59,281,253     $ 593       32,348,221     $ 323     $ 405,450     $ 295,136     $ (127 )     27,876,217     $ (206,268 )   $ 495,107  
                                                                                 

Balance at July 2, 2023

     58,273,747     $ 583       32,348,221     $ 323     $ 388,215     $ 271,083     $ (170 )     25,845,875     $ (188,191 )   $ 471,843  

Net income

     -       -       -       -       -       31,665       -       -       -       31,665  

Stock-based compensation

     465,112       5       -       -       4,590       -       -       -       -       4,595  

Exercise of stock options

     5,110       -       -       -       44       -       -       -       -       44  

Acquisition of Class A treasury stock

     -       -       -       -       -       -       -       523,461       (4,787 )     (4,787 )

Balance at December 31, 2023

     58,743,969     $ 588       32,348,221     $ 323     $ 392,849     $ 302,748     $ (170 )     26,369,336     $ (192,978 )   $ 503,360  

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

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1-800-FLOWERS.COM, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

   

Six Months Ended

  
   

December 29,

    

December 31,

  
   

2024

    

2023

  
                 

Operating activities:

                

Net income

   $ 30,158     $ 31,665  

Reconciliation of net income to net provided by operating activities, net of acquisitions:

                

Intangible impairment

     -       19,762  

Depreciation and amortization

     27,168       27,346  

Amortization of deferred financing costs

     361       361  

Deferred income taxes

     (1,496 )     (6,108 )

Bad debt expense

     131       225  

Stock-based compensation

     6,108       4,595  

Other non-cash items

     (412 )     (385 )

Changes in operating items:

                

Trade receivables

     (43,400 )     (26,384 )

Inventories

     20,446       29,808  

Prepaid and other

     5,850       6,640  

Accounts payable and accrued expenses

     104,671       125,404  

Other assets and liabilities

     1,722       (169 )

Net cash provided by operating activities

     151,307       212,760  
                 

Investing activities:

                

Acquisitions, net of cash acquired

     (3,000 )     -  

Capital expenditures

     (23,023 )     (17,807 )

Net cash used in investing activities

     (26,023 )     (17,807 )
                 

Financing activities:

                

Acquisition of treasury stock

     (7,683 )     (4,787 )

Proceeds from exercise of employee stock options

     182       44  

Proceeds from bank borrowings

     110,000       82,000  

Repayment of bank borrowings

     (140,000 )     (87,000 )

Net cash used in financing activities

     (37,501 )     (9,743 )
                 

Net change in cash and cash equivalents

     87,783       185,210  

Cash and cash equivalents:

                

Beginning of period

     159,437       126,807  

End of period

   $ 247,220     $ 312,017  

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

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1-800-FLOWERS.COM, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

 

 

Note 1 – Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared by 1-800-FLOWERS.COM, Inc. and Subsidiaries (the “Company”) in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended December 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 29, 2025. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, which provides a more complete understanding of our accounting policies, financial position, operating results and other matters.

 

The Company’s quarterly results may experience seasonal fluctuations. Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, is expected to generate over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother's Day, Valentine’s Day, Easter, and Administrative Professionals Week, revenues also have historically risen during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

Revenue Recognition

 

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

 

A description of our principal revenue generating activities is as follows:

 

●

E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

●

Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received.

●

Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

●

BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and, as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

 

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Deferred Revenues

 

Deferred revenues are recorded when the Company has received consideration (i.e. advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

 

Our total deferred revenue as of  June 30, 2024 was $25.0 million (included in “Accrued expenses” on our consolidated balance sheets), of which $9.0 million and $22.0 million was recognized as revenue during the three and six months ended December 29, 2024. The deferred revenue balance as of  December 29, 2024 was $36.1 million.

 

Impairment Evaluation

 

The Company performs its annual assessment of goodwill and indefinite-lived intangible impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist.  During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company's PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename.  This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

 

The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.  See Note 6 – Goodwill and other intangibles, net for further information.

 

Recently Issued Accounting Pronouncements

 

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.  ASU 2024-03 requires enhanced disclosures about a business entity's expenses, includes enhanced interim disclosure requirements, and requires additional disclosure about specific types of expenses included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses.  The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted.  ASU 2024-03 allows for either a prospective or retrospective approach on adoption.  The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

 
 

 

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Note 2 – Net Income (Loss) Per Common Share

 

Basic net income per common share is computed by dividing the net income during the period by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. 

 

The following table sets forth the computation of basic and diluted net income per common share:

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands, except per share data)

  

Numerator:

                                

Net income

   $ 64,348     $ 62,907     $ 30,158     $ 31,665  
                                 

Denominator:

                                

Weighted average shares outstanding

     63,836       64,835       64,017       64,814  

Effect of dilutive stock options and unvested restricted stock awards

     470       342       484       341  
                                 

Diluted weighted-average shares outstanding

     64,306       65,177       64,501       65,155  
                                 

Net income per common share

                                

Basic

   $ 1.01     $ 0.97     $ 0.47     $ 0.49  

Diluted

   $ 1.00     $ 0.97     $ 0.47     $ 0.49  
 

Note 3 – Acquisitions

 

Acquisition of Scharffen Berger

 

On July 1, 2024, the Company completed its acquisition of certain assets of Scharffen Berger®, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment. The Company used cash on hand to fund the purchase.

 

The total consideration of $3.3 million was primarily allocated to the identifiable assets acquired and liabilities assumed based on the preliminary estimates of their fair values on the acquisition date, including: property, plant and equipment of $2.0 million, inventory of $1.3 million and goodwill of $0.1 million (deductible for income tax purposes), offset by net liabilities of $0.1 million.  The Company is in the process of finalizing its allocation and this may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain additional intangible assets, revision of useful lives of intangible assets, and the determination of any residual amount that will be allocated to goodwill.

 

Scharffen Berger annual revenues and results of operations, based on its most recent available financial information, is deemed immaterial to the Company's consolidated financial statements and, as such, pro forma results of operations have not been presented.

 

Acquisition of Card Isle

 

On April 3, 2024, the Company, within its BloomNet segment, completed its acquisition of certain assets of Card Isle®, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on hand to fund the purchase.

 

The total consideration of $3.6 million was allocated to the identifiable assets acquired and liabilities assumed based on the estimates of their fair values on the acquisition date. During the quarter ended December 29, 2024, the Company finalized its purchase price allocation, and the consideration transferred was allocated to goodwill of $3.0 million (deductible for income tax purposes) and artist contracts of $0.6 million (5-year life). 

 

Card Isle annual revenues and results of operations, based on its most recently available financial information, is deemed immaterial to the Company's consolidated financial statements and, as such, pro forma results of operations have not been presented.
 

 

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Note 4 – Inventory

 

The Company’s inventory, valued at the lower of cost or net realizable value, includes purchased and manufactured finished goods for sale, packaging supplies, crops, raw material ingredients for manufactured products and associated manufacturing labor, and is classified as follows:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Finished goods

   $ 100,896     $ 94,590  

Work-in-process

     12,058       25,849  

Raw materials

     44,484       56,152  

Total inventory

   $ 157,438     $ 176,591  
 

Note 5 – Property, plant and equipment, net

 

The Company’s property, plant and equipment, net consists of the following:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Land

   $ 33,827     $ 33,827  

Orchards in production and land improvements

     20,917       20,604  

Building and building improvements

     70,035       69,089  

Leasehold improvements

     31,330       31,289  

Production equipment

     135,746       131,664  

Furniture and fixtures

     9,512       9,325  

Computer and telecommunication equipment

     43,951       42,159  

Software

     205,187       176,160  

Capital projects in progress

     11,223       23,172  

Property, plant and equipment, gross

     561,728       537,289  

Accumulated depreciation and amortization

     (338,550 )     (313,500 )

Property, plant and equipment, net

   $ 223,178     $ 223,789  
 

Note 6 – Goodwill and other intangibles, net

 

The following table presents goodwill by segment and the related change in the net carrying amount:

 

                   

Gourmet

          
   

Consumer

            

Foods &

          
   

Floral &

            

Gift

          
   

Gifts

    

BloomNet

    

Baskets

    

Total

  
   

(in thousands)

  

Balance at June 30, 2024

   $ 153,577     $ 2,960     $ -     $ 156,537  

Acquisition of Scharffen Berger

     -       -       111       111  

Balance at December 29, 2024

   $ 153,577     $ 2,960     $ 111     $ 156,648  

   

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The Company’s other intangible assets, net consist of the following:

 

         

December 29, 2024

    

June 30, 2024

  
         

Gross

                    

Gross

                  
   

Amortization

    

Carrying

    

Accumulated

            

Carrying

    

Accumulated

          
   

Period

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

  
   

(in years)

    

(in thousands)

  

Intangible assets with determinable lives

                                                      

Investment in licenses

   14 - 16     $ 7,420     $ 6,727     $ 693     $ 7,420     $ 6,674     $ 746  

Customer lists

   3 - 10       29,647       26,986       2,661       29,647       25,932       3,715  

Other

   5 - 14       2,946       2,694       252       2,946       2,664       282  

Total intangible assets with determinable lives

           40,013       36,407       3,606       40,013       35,270       4,743  

Trademarks with indefinite lives

           111,473       -       111,473       111,473       -       111,473  

Total identifiable intangible assets

         $ 151,486     $ 36,407     $ 115,079     $ 151,486     $ 35,270     $ 116,216  

 

Future estimated amortization expense is as follows: remainder of fiscal 2025 - $0.9 million, fiscal 2026 - $1.4 million, fiscal 2027 - $0.6 million, fiscal 2028 - $0.3 million, fiscal 2029 - $0.2 million and thereafter - $0.1 million.

 

The Company performs its annual assessment of goodwill and indefinite-lived intangibles impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment  may exist.

 

During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required. The Company’s impairment test for the indefinite-lived intangible asset encompassed calculating a fair value of the indefinite-lived intangible asset and comparing that result to its carrying value. To determine fair value of the indefinite-lived intangible asset, the Company used an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value. Based on the impairment assessment performed for the quarter ending December 31, 2023, the Company recorded a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename to its estimated fair value. This impairment charge was recorded in the Company’s Consumer Floral & Gifts reporting unit.  The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.
 
Note 7 – Investments

 

Equity investments without a readily determinable fair value

 

Investments in non-marketable equity instruments of private companies, where the Company does not possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method invest ments was $2.4 million as of  December 29, 2024 and June 30, 2024 , respectively. 

 

Equity investments with a readily determinable fair value

 

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 11 - Fair Value Measurements).  
 
 

 

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Note 8 – Leases 

 

The Company currently leases plants, warehouses, offices, store facilities, and equipment under various leases through fiscal 2036. Most lease agreements are of a long-term nature (over a year), although the Company does also enter into short-term leases, primarily for seasonal needs. Lease agreements may contain renewal options and rent escalation clauses and require the Company to pay real estate taxes, insurance, common area maintenance and operating expenses applicable to the leased properties. The Company accounts for its leases in accordance with Accounting Standards Codification ("ASC") 842.

 

At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time, by assessing whether the Company has the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset.

 

At the lease commencement date, the Company determines if a lease should be classified as an operating or a finance lease (the Company currently has no finance leases) and recognizes a corresponding lease liability and a right-of-use asset on its consolidated balance sheet. The lease liability is initially and subsequently measured as the present value of the remaining fixed minimum rental payments (including base rent and fixed common area maintenance) using discount rates as of the commencement date. Variable payments (including most utilities, real estate taxes, insurance and variable common area maintenance) are expensed as incurred. Further, the Company elected a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The right-of-use asset is initially and subsequently measured at the carrying amount of the lease liability adjusted for any prepaid or accrued lease payments, remaining balance of lease incentives received, unamortized initial direct costs, or impairment charges relating to the right-of-use asset. Right-of-use assets are assessed for impairment using the long-lived assets impairment guidance. The discount rate used to determine the present value of lease payments is the Company’s estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the Company generally cannot determine the interest rate implicit in the lease.

 

The Company recognizes expense for its operating leases on a straight-line basis over the lease term. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Renewal option periods are included in the measurement of lease liability, where the exercise is reasonably certain to occur. Key estimates and judgments in accounting for leases include how the Company determines: ( 1) lease payments, ( 2) lease term, and ( 3) the discount rate used in calculating the lease liability.

 

Additional information related to the Company's leases is as follows:

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Lease costs:

                                

Operating lease costs

   $ 5,993     $ 5,651     $ 11,997     $ 11,273  

Variable lease costs

     6,829       7,568       13,356       14,082  

Short-term lease cost

     2,310       2,535       3,065       3,418  

Sublease income

     (206 )     (246 )     (436 )     (497 )

Total lease costs

   $ 14,926     $ 15,508     $ 27,982     $ 28,276  
                                 

Cash paid for amounts included in measurement of operating lease liabilities

               $ 10,376     $ 11,300  

Right-of-use assets obtained in exchange for new operating lease liabilities

               $ 5,855     $ 1,784  

 

 

   

December 29,

  
   

2024

  
       

Weighted-average remaining lease term - operating leases (in years)

     7.5  

Weighted-discount rate - operating leases

     4.5 %

 

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Maturities of lease liabilities in accordance with ASC 842 as of December 29, 2024 and reconciliation to the consolidated balance sheet are as follows (in thousands):

 

Fiscal Year:

        

Remainder of 2025

   $ 11,884  

2026

     21,875  

2027

     18,956  

2028

     17,979  

2029

     17,031  

Thereafter

     54,123  

Total future minimum lease payments

     141,848  

Less: Imputed remaining interest

     21,320  

Total operating lease liabilities

     120,528  

Less: Current portion of long-term operating lease liabilities

     18,490  

Long-term operating lease liabilities

   $ 102,038
 

Note 9 – Accrued expenses

 

Accrued expenses consists of the following:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Payroll and employee benefits

   $ 22,559     $ 29,954  

Deferred revenue

     36,149       25,009  

Accrued marketing expenses

     15,580       10,709  

Accrued florist payout

     12,569       9,526  

Accrued purchases

     43,469       15,338  

Other

     63,232       30,767  

Accrued Expenses

   $ 193,558     $ 121,303  
 

Note 10 – Long-term debt, net

 

The Company’s current and long-term debt consists of the following:

 

  

December 29, 2024

  

June 30, 2024

 
  

(in thousands)

 

Revolver

 $-  $- 

Term Loans

  160,000   190,000 

Deferred financing costs

  (2,526)  (2,887)

Total debt

  157,474   187,113 

Less: current maturities of long-term debt

  -   10,000 

Long-term debt, net

 $157,474  $177,113

 

On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”). The Third Amended Credit Agreement amended and restated the Company’s Second Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended by the First Amendment, dated as of August 20, 2020, the Second Amendment, dated as of November 8, 2021, and the Third Amendment, dated as of August 29, 2022). The Third Amended Credit Agreement, among other modifications: (i) increased the amount of the outstanding term loan (“Term Loan”) to $200 million, (ii) decreased the amount of the commitments in respect of the revolving credit facility to $225 million, subject to a seasonal reduction to an aggregate amount of $125 million for the period from January 1 to August 1, (iii) extended the maturity date of the outstanding Term Loan and the revolving credit facilities to June 27, 2028, and (iv) increased the applicable interest rate margins for SOFR and base rate loans by 25 basis points.

 

For each borrowing under the Existing Credit Agreement (as defined below), the Company may elect that such borrowing bear interest at an annual rate equal to either: ( 1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate for a one-month interest period plus 1% or ( 2) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.1% for all interest periods.
 
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On January 28, 2025, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a First Amendment (the “First Amendment”) to the Third Amended Credit Agreement. The First Amendment amended the Third Amended Credit Agreement (the Third Amended Credit Agreement, as amended by the First Amendment, the “Existing Credit Agreement”) by, among other modifications, (1) revising the definition of “Consolidated EBITDA” to (x) provide that extraordinary, unusual or non-recurring cash expenses or losses may be added back to Consolidated Net Income in the calculation of Consolidated EBITDA, (y) clarify that expenses or losses in connection with the implementation or integration of operational systems, information technology or similar upgrades are deemed to constitute extraordinary, unusual or non-recurring expenses or losses, and (z) include an additional add-back to Consolidated EBITDA for the amount of any restructuring charge, accrual, reserve (and increases to existing reserves) or expense, (2) clarifying the application of optional prepayments of Term Loans under the Existing Credit Agreement toward scheduled principal payments of such Term Loans, and (3) revising the definition of “Consolidated Fixed Charges” to clarify that applicable scheduled principal payments of indebtedness are included in Consolidated Fixed Charges only to the extent not offset by the application of prepayments of such indebtedness.

 

The Existing Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of December 29, 2024.  The Existing Credit Agreement is secured by substantially all of the assets of the Company.

 

The principal of the Term Loan is payable at a rate of $2.5 million for the first 8 quarterly installments beginning on September 29, 2023, increasing to a quarterly payment of $5.0 million, commencing on September 26, 2025, for the remaining 11 payments, with the remaining balance of $125.0 million due upon maturity on June 27, 2028.  

 

During the three months ended December 29, 2024, the Company elected to optionally pay down an incremental $25.0 million against the outstanding Term Loan balance.  This payment will be applied toward the installment payments, noted above in direct order of maturity.  

 

Future principal Term Loan payments under the Third Amended Credit Agreement are as follows:  $0.0 million – remainder of fiscal 2025 ,  $0.0 million – fiscal 2026 ,  $20.0 million – fiscal 2027 , and  $140.0 million – fiscal 2028 .
 

Note 11 – Fair value measurements

 

Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no trading market exists, the Company believes that the carrying amount of its debt approximates fair value due to its variable nature (these are level 2 investments). The Company’s investments in non-marketable equity instruments of private companies are carried at cost and are periodically assessed for other-than-temporary impairment when an event or circumstances indicate that an other-than-temporary decline in value may have occurred. The Company’s remaining financial assets and liabilities are measured and recorded at fair value (see table below). The Company’s non-financial assets, such as definite lived intangible assets and property, plant and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Goodwill and indefinite lived intangibles are tested for impairment annually, or more frequently, if events occur or circumstances change such that it is more likely than not that an impairment may exist, as required under the accounting standards.

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the guidance are described below:

 

Level 1

Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2

Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

Level 3

Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

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The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis:

 

   

Carrying

    

Fair Value Measurements

  
   

Value

    

Assets (Liabilities)

  
           

Level 1

    

Level 2

    

Level 3

  
   

(in thousands)

  

Assets (Liabilities) as of December 29, 2024

                                

Trading securities held in a “rabbi trust” (1)

   $ 36,182     $ 36,182     $ -     $ -  
    $ 36,182     $ 36,182     $ -     $ -  
                                 

Assets (Liabilities) as of June 30, 2024

                                

Trading securities held in a “rabbi trust”(1)

   $ 32,805     $ 32,805     $ -     $ -  
    $ 32,805     $ 32,805     $ -     $ -  

 

 

(1)

The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in a rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets. 
 

Note 12 – Income taxes

 

The Company computed the interim tax provision using an estimated annual effective rate, adjusted for discrete items. This estimate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim periods. The Company’s effective tax rate for the three and six months ended December 29, 2024 was 26.7% and 23.2%, respectively, compared to 29.6% and 33.8% in the same periods of the prior year. The Company’s effective tax rate for the three and six months ended December 29, 2024 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes, tax deficiencies (shortfalls) from stock-based compensation and increases in valuation allowances, partially offset by tax credits. The Company’s effective tax rate for the three and six months ended December 31, 2023 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes and non-deductible executive compensation, partially offset by tax credits. The Company's effective tax rate for the three and six months ended December 31, 2023, was further impacted by the intangible impairment charge, which reduced the amount of income reflected in the Company’s estimated annual effective tax rate.

 

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.  As of December 29, 2024, and June 30, 2024, the Company had valuation allowances of approximately $6.2 million and $4.9 million, respectively, primarily related to certain state and foreign net operating losses. 

 

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company’s fiscal years 2023, 2022 and 2021 remain subject to U.S. federal examination. Due to nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from fiscal 2020. The Company's foreign income tax filings from fiscal 2018 are open for examination by its respective foreign tax authorities, mainly Canada and Brazil. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At December 29, 2024, the Company has an unrecognized tax benefit, including accrued interest and penalties, of approximately $3.4 million (included in "Other liabilities" on our consolidated balance sheet), all of which if fully recognized would impact our effective tax rate. The Company believes that $0.4 million of unrecognized tax positions will be resolved over the next twelve months.

 

 
 

 

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Note 13 – Commitments and contingencies

 

Litigation
 
There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the final resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.
 

Note 14 – Business segments

 

The Company’s management reviews the results of its operations by the following three business segments:

 

•

Consumer Floral & Gifts,

•

BloomNet, and

•

Gourmet Foods & Gift Baskets

 

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead (see (a) below), nor does it include depreciation and amortization, other (income) expense, net and income taxes, or stock-based compensation, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Net Revenues:

                                

Segment Net Revenues:

                                

Consumer Floral & Gifts

   $ 234,349     $ 254,835     $ 369,529     $ 397,029  

BloomNet

     22,837       27,236       45,912       56,106  

Gourmet Foods & Gift Baskets

     518,454       539,963       602,457       638,072  

Corporate

     113       279       202       549  

Intercompany eliminations

     (261 )     (259 )     (518 )     (652 )

Total net revenues

   $ 775,492     $ 822,054     $ 1,017,582     $ 1,091,104  
                                 

Operating Income:

                                

Segment Contribution Margin:

                                

Consumer Floral & Gifts

   $ 21,587     $ 10,593     $ 26,531     $ 19,419  

BloomNet

     7,460       9,088       14,301       18,475  

Gourmet Foods & Gift Baskets

     107,277       118,153       95,024       107,125  

Segment Contribution Margin Subtotal

     136,324       137,834       135,856       145,019  

Corporate (a)

     (31,117 )     (32,432 )     (64,592 )     (64,000 )

Depreciation and amortization

     (14,130 )     (14,152 )     (27,168 )     (27,346 )

Operating income

   $ 91,077     $ 91,250     $ 44,096     $ 53,673  

 

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

 

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The following tables represent a disaggregation of revenue from contracts with customers, by channel: 

 

   

Three Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 232,514     $ 252,845     $ -     $ -     $ 444,812     $ 485,561     $ -     $ -     $ 677,326     $ 738,406  

Other

     1,835       1,990       22,837       27,236       73,642       54,402       (148 )     20       98,166       83,648  

Total net revenues

   $ 234,349     $ 254,835     $ 22,837     $ 27,236     $ 518,454     $ 539,963     $ (148 )   $ 20     $ 775,492     $ 822,054  
                                                                                 

Other revenues detail

                                                                                

Retail and other

     1,835       1,990       -       -       4,559       4,296       -       -       6,394       6,286  

Wholesale

     -       -       8,571       8,706       69,083       50,106       -       -       77,654       58,812  

BloomNet services

     -       -       14,266       18,530       -       -       -       -       14,266       18,530  

Corporate

     -       -       -       -       -       -       113       279       113       279  

Eliminations

     -       -       -       -       -       -       (261 )     (259 )     (261 )     (259 )

Total other revenues

   $ 1,835     $ 1,990     $ 22,837     $ 27,236     $ 73,642     $ 54,402     $ (148 )   $ 20     $ 98,166     $ 83,648  

 

 

 

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Six Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 366,058     $ 393,180     $ -     $ -     $ 504,442     $ 555,137     $ -     $ -     $ 870,500     $ 948,317  

Other

     3,471       3,849       45,912       56,106       98,015       82,935       (316 )     (103 )     147,082       142,787  

Total net revenues

   $ 369,529     $ 397,029     $ 45,912     $ 56,106     $ 602,457     $ 638,072     $ (316 )   $ (103 )   $ 1,017,582     $ 1,091,104  
                                                                                 

Other revenues detail

                                                                                

Retail and other

   $ 3,471     $ 3,849     $ -     $ -     $ 6,343     $ 6,230     $ -     $ -     $ 9,814     $ 10,079  

Wholesale

     -       -       18,683       20,503       91,672       76,705       -       -       110,355       97,208  

BloomNet services

     -       -       27,229       35,603       -       -       -       -       27,229       35,603  

Corporate

     -       -       -       -       -       -       202       549       202       549  

Eliminations

     -       -       -       -       -       -       (518 )     (652 )     (518 )     (652 )

Total other revenues

   $ 3,471     $ 3,849     $ 45,912     $ 56,106     $ 98,015     $ 82,935     $ (316 )   $ (103 )   $ 147,082     $ 142,787  

  

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” ("MD&A") is intended to provide an understanding of our financial condition, change in financial condition, cash flow, liquidity, and results of operations. The following MD&A discussion should be read in conjunction with the consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-Q and in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024. The following discussion contains forward-looking statements that reflect the Company’s plans, estimates and beliefs. The Company’s actual results could differ materially from those discussed or referred to in the forward-looking statements. Factors that could cause or contribute to any differences include, but are not limited to, those discussed under the caption “Forward-Looking Information and Factors That May Affect Future Results,” under Part I, Item 1A, of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 under the heading “Risk Factors” and Part II-Other Information, Item 1A in this Form 10-Q.

 

Business Overview

 

1-800-FLOWERS.COM, Inc. and its subsidiaries (collectively, the “Company”) is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Scharffen Berger®, and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, the Company strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad range of products and services designed to help its members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service.

 

For additional information, see Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Overview” of our Annual Report on Form 10-K for the fiscal year ended June 30, 2024. 

 

Macro-economic Conditions

 

Overall, broader macro-economic conditions continue to impact our consumers as they continue to moderate their discretionary spending. Throughout the first half of fiscal 2025, we have seen sales challenged by a reduction in everyday or just-because gift giving. As our second quarter contains the Thanksgiving to Christmas holiday season, we anticipated sales trends to improve as our gifting business has historically proven to be more resilient during holiday periods. However, due to a more condensed holiday season with fewer shopping days between Thanksgiving and Christmas, we anticipated consumers to begin their holiday shopping later in the season. In line with our expectations, consumer spending increased later in the season, but not to anticipated levels. Total consolidated revenues decreased 5.7% to $775.5 million and 6.7% to $1,017.6 million during the three and six months ended December 29, 2024 respectively, compared with total consolidated revenues of $822.1 million and $1,091.1 million in the same prior year periods. 

 

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Intangible Impairment

 

During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename, as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename. See Note 6 – Goodwill and other intangibles, net in Item 1for further information.

 

Acquisition of Scharffen Berger

 

On July 1, 2024, the Company completed its acquisition of certain assets of Scharffen Berger, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment.  The Company used cash on its balance sheet to fund the approximately $3.3 million purchase – See Note 3 – Acquisitions in Item 1.

 

Acquisition of Card Isle

 

On April 3, 2024, the Company completed its acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on its balance sheet to fund the $3.6 million purchase – See Note 3 – Acquisitions in Item 1. 

 

Company Guidance

 

Based on the Company's performance during the fiscal second quarter, the Company is updating its fiscal 2025 guidance as outlined below. TheCompany expects its revenue trend to improve as the fiscal year progresses, benefitting from its Relationship Innovation initiatives that have expanded the Company's offerings, broadened price points and enhanced the user experience.

 

As a result, for fiscal 2025 the Company now expects:

 

 

●

Total revenues to decline in the mid-single digits, on a percentage basis, as compared with the prior year;

 

 

●

Adjusted EBITDA to be in a range of $65 million to $75 million; and

 

 

●

Free Cash Flow to be in a range of $25 million to $35 million.

 

Refer to "Definitions of non-GAAP Financial Measures" for reconciliation of non-GAAP results to applicable GAAP results.

 

Definitions of non-GAAP Financial Measures:

 

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).  Certain of these are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. See below for definitions and the reasons why we use these non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures.  These non-GAAP financial measures are referred to as “non-GAAP”, “adjusted” or "on a comparable basis" below, as these terms are used interchangeably. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company's management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

 

 

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EBITDA and Adjusted EBITDA

 

We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Deferred Compensation Plan (“NQDC Plan”) Investment appreciation/depreciation, and certain items affecting period-to-period comparability.

 

The Company presents EBITDA and Adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and Adjusted EBITDA as factors to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company's credit agreement uses EBITDA and Adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and Adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates.

 

EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of the limitations are: (a) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company's working capital needs; (b) EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on the Company's debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company's performance.

 

The following table presents the EBITDA and Adjusted EBITDA for the three and six months ended December 29, 2024 and December 31, 2023, respectively.

 

Reconciliation of net income to Adjusted EBITDA (non-GAAP):

  

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Net income

   $ 64,348     $ 62,907     $ 30,158     $ 31,665  

Add: Interest expense and other, net

     3,232       1,875       4,825       5,831  

Add: Depreciation and amortization

     14,130       14,152       27,168       27,346  

Add: Income tax expense

     23,497       26,468       9,113       16,177  

EBITDA

     105,207       105,402       71,264       81,019  

Add: Stock-based compensation

     3,629       2,231       6,108       4,595  

Add: Compensation charge related to NQDC Plan investment appreciation

     1,135       2,682       2,873       2,178  

Add: System implementation costs

     6,307       -       8,087       -  

Add: Intangible impairment

     -       19,762       -       19,762  

Adjusted EBITDA

   $ 116,278     $ 130,077     $ 88,332     $ 107,554  

 

Adjusted net income and adjusted or comparable net income per common share

 

We define adjusted net income (loss) and adjusted or comparable net income (loss) per common share as net income (loss) and net income (loss) per common share adjusted for certain items affecting period-to-period comparability. We believe that adjusted net income (loss) and adjusted or comparable net income (loss) per common share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP net income (loss) and net income (loss) per common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

 

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The following table presents the adjusted net income and adjusted net income per common share for the three and six months ended December 29, 2024 and December 31, 2023, respectively.

 

Reconciliation of net income to adjusted net income (non-GAAP):

  

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands, except for share data)

  

Net income

   $ 64,348     $ 62,907     $ 30,158     $ 31,665  

Adjustments to reconcile net income to adjusted net income (non-GAAP)

                                

Add: System implementation costs

     6,307       -       8,087       -  

Add: Intangible impairment

     -       19,762       -       19,762  

Deduct: Income tax effect on adjustments

     (1,475 )     -       (2,002 )     -  

Adjusted net income (non-GAAP)

   $ 69,180     $ 82,669     $ 36,243     $ 51,427  
                                 

Basic and diluted net income per common share

                                

Basic

   $ 1.01     $ 0.97     $ 0.47     $ 0.49  

Diluted

   $ 1.00     $ 0.97     $ 0.47     $ 0.49  
                                 

Basic and diluted adjusted net income per common share (non-GAAP)

                                

Basic

   $ 1.08     $ 1.28     $ 0.57     $ 0.79  

Diluted

   $ 1.08     $ 1.27     $ 0.56     $ 0.79  
                                 

Weighted average shares used in the calculation of basic and diluted net income and adjusted net income per common share

                                

Basic

     63,836       64,835       64,017       64,814  

Diluted

     64,306       65,177       64,501       65,155  

 

Segment contribution margin and adjusted segment contribution margin

 

We define segment contribution margin as earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. Adjusted segment contribution margin is defined as contribution margin adjusted for certain items affecting period-to-period comparability. When viewed together with our GAAP results, we believe segment contribution margin and adjusted segment contribution margin provide management and users of the financial statements meaningful information about the performance of our business segments.

 

Segment contribution margin and adjusted segment contribution margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of segment contribution margin and adjusted segment contribution margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for this limitation when using this measure by looking at other GAAP measures, such as operating income and net income.

 

The following table presents the net revenues, gross profit, segment contribution margin, and adjusted segment contribution margin from each of the Company’s business segments, for the three and six months ended December 29, 2024 and December 31, 2023, respectively.

 

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Three Months Ended

  
                                                         
           

System

    

As Adjusted

                    

As Adjusted

          
           

Implementation

    

(non-GAAP)

            

Intangible

    

(non-GAAP)

    

%

  
   

December 29, 2024

    

Costs

    

December 29, 2024

    

December 31, 2023

    

Impairment

    

December 31, 2023

    

Change

  
   

(dollars in thousands)

  

Net revenues:

                                                        

Consumer Floral & Gifts

   $ 234,349     $ -     $ 234,349     $ 254,835     $ -     $ 254,835       -8.0 %

BloomNet

     22,837       -       22,837       27,236       -       27,236       -16.2 %

Gourmet Foods & Gift Baskets

     518,454       -       518,454       539,963       -       539,963       -4.0 %

Corporate

     113       -       113       279       -       279       -59.5 %

Intercompany eliminations

     (261 )     -       (261 )     (259 )     -       (259 )     -0.8 %

Total net revenues

   $ 775,492     $ -     $ 775,492     $ 822,054     $ -     $ 822,054       -5.7 %
                                                         

Gross profit:

                                                        

Consumer Floral & Gifts

   $ 98,288     $ -     $ 98,288     $ 109,176     $ -     $ 109,176       -10.0 %
      41.9 %             41.9 %     42.8 %             42.8 %        
                                                         

BloomNet

     11,624       -       11,624       12,974       -       12,974       -10.4 %
      50.9 %             50.9 %     47.6 %             47.6 %        
                                                         

Gourmet Foods & Gift Baskets

     225,390       1,992       227,382       233,200       -       233,200       -2.5 %
      43.5 %             43.9 %     43.2 %             43.2 %        
                                                         

Corporate

     291       -       291       347       -       347       -16.1 %
      257.5 %             257.5 %     124.4 %             124.4 %        
                                                         

Total gross profit

   $ 335,593     $ 1,992     $ 337,585     $ 355,697     $ -     $ 355,697       -5.1 %
      43.3 %             43.5 %     43.3 %             43.3 %        
                                                         

EBITDA (non-GAAP):

                                                        

Segment Contribution Margin (non-GAAP) (a):

                                                        

Consumer Floral & Gifts

   $ 21,587     $ -     $ 21,587     $ 10,593     $ 19,762     $ 30,355       -28.9 %

BloomNet

     7,460       -       7,460       9,088       -       9,088       -17.9 %

Gourmet Foods & Gift Baskets

     107,277       4,166       111,443       118,153       -       118,153       -5.7 %

Segment Contribution Margin Subtotal

     136,324       4,166       140,490       137,834       19,762       157,596       -10.9 %

Corporate (b)

     (31,117 )     2,141       (28,976 )     (32,432 )             (32,432 )     10.7 %

EBITDA (non-GAAP)

     105,207       6,307       111,514       105,402       19,762       125,164       -10.9 %

Add: Stock-based compensation

     3,629       -       3,629       2,231       -       2,231       62.7 %

Add: Compensation charge related to NQDC Plan Investment Appreciation

     1,135       -       1,135       2,682       -       2,682       -57.7 %

Adjusted EBITDA (non-GAAP) (c)

   $ 109,971     $ 6,307     $ 116,278     $ 110,315     $ 19,762     $ 130,077       -10.6 %

 

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Six Months Ended

  
                                                         
           

System

    

As Adjusted

                    

As Adjusted

          
           

Implementation

    

(non-GAAP)

            

Intangible

    

(non-GAAP)

    

%

  
   

December 29, 2024

    

Costs

    

December 29, 2024

    

December 31, 2023

    

Impairment

    

December 31, 2023

    

Change

  
   

(dollars in thousands)

  

Net revenues:

                                                        

Consumer Floral & Gifts

   $ 369,529     $ -     $ 369,529     $ 397,029     $ -     $ 397,029       -6.9 %

BloomNet

     45,912       -       45,912       56,106       -       56,106       -18.2 %

Gourmet Foods & Gift Baskets

     602,457       -       602,457       638,072       -       638,072       -5.6 %

Corporate

     202       -       202       549       -       549       -63.2 %

Intercompany eliminations

     (518 )     -       (518 )     (652 )     -       (652 )     20.6 %

Total net revenues

   $ 1,017,582     $ -     $ 1,017,582     $ 1,091,104     $ -     $ 1,091,104       -6.7 %
                                                         

Gross profit:

                                                        

Consumer Floral & Gifts

   $ 152,217     $ -     $ 152,217     $ 165,498     $ -     $ 165,498       -8.0 %
      41.2 %             41.2 %     41.7 %             41.7 %        
                                                         

BloomNet

     23,152       -       23,152       27,472       -       27,472       -15.7 %
      50.4 %             50.4 %     49.0 %             49.0 %        
                                                         

Gourmet Foods & Gift Baskets

     252,234       1,992       254,226       264,107       -       264,107       -3.7 %
      41.9 %             42.2 %     41.4 %             41.4 %        
                                                         

Corporate

     309       -       309       548       -       548       -43.6 %
      153.0 %             153.0 %     99.8 %             99.8 %        
                                                         

Total gross profit

   $ 427,912     $ 1,992     $ 429,904     $ 457,625     $ -     $ 457,625       -6.1 %
      42.1 %             42.2 %     41.9 %             41.9 %        
                                                         

EBITDA (non-GAAP):

                                                        

Segment Contribution Margin (non-GAAP) (a):

                                                        

Consumer Floral & Gifts

   $ 26,531     $ -     $ 26,531     $ 19,419     $ 19,762     $ 39,181       -32.3 %

BloomNet

     14,301       -       14,301       18,475       -       18,475       -22.6 %

Gourmet Foods & Gift Baskets

     95,024       5,079       100,103       107,125       -       107,125       -6.6 %

Segment Contribution Margin Subtotal

     135,856       5,079       140,935       145,019       19,762       164,781       -14.5 %

Corporate (b)

     (64,592 )     3,008       (61,584 )     (64,000 )             (64,000 )     3.8 %

EBITDA (non-GAAP)

     71,264       8,087       79,351       81,019       19,762       100,781       -21.3 %

Add: Stock-based compensation

     6,108       -       6,108       4,595       -       4,595       32.9 %

Add: Compensation charge related to NQDC Plan Investment Appreciation

     2,873       -       2,873       2,178       -       2,178       31.9 %

Adjusted EBITDA (non-GAAP) (c)

   $ 80,245     $ 8,087     $ 88,332     $ 87,792     $ 19,762     $ 107,554       -17.9 %

 

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(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance.

 

(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

 

(c) See reconciliation of the Company's net income to Adjusted EBITDA (non-GAAP) above.

 

Free Cash Flow

 

We define free cash flow as net cash provided by (used in) operating activities, less capital expenditures. The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet, and repurchase stock or retire debt. Free cash flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since free cash flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period.

 

The following table reconciles net cash provided by operating activities, a GAAP measure, to free cash flow, a non-GAAP measure for the six months ended December 29, 2024 and December 31, 2023, respectively.

 

 

   

Six Months Ended

  
   

December 29,

    

December 31,

  
   

2024

    

2023

  
    (in thousands)  

Net cash provided by operating activities

   $ 151,307     $ 212,760  

Capital expenditures

     (23,023 )     (17,807 )

Free cash flow

   $ 128,284     $ 194,953  

 

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Results of Operations

 

Net revenues

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

          

Net revenues:

                                                

E-Commerce

   $ 677,326     $ 738,406       -8.3 %   $ 870,500     $ 948,317       -8.2 %

Other

     98,166       83,648       17.4 %     147,082       142,787       3.0 %

Total net revenues

   $ 775,492     $ 822,054       -5.7 %   $ 1,017,582     $ 1,091,104       -6.7 %

 

Net revenues consist primarily of the selling price of the merchandise, service or outbound shipping charges, less discounts, returns and credits.

 

Net revenues decreased 5.7% and 6.7% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to lower e-commerce order volume across the Company's three segments, reflecting a continuation of the trends that the Company had experienced throughout the prior fiscal year, as consumer discretionary income remains pressured, and consumers continue to moderate their spending. In addition, the implementation of a new order management system for our Harry & David brand within the Gourmet Foods & Gift Baskets segment negatively impacted sales in the current period by approximately $20 million. The decrease was partially offset by increased wholesale demand due to increased orders from big box retailers.

 

The Company acquired Scharffen Berger and Card Isle on July 1, 2024 and April 3, 2024, respectively. Revenues related to these acquisitions were not significant during the three and six months ended December 29, 2024.

 

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Three Months Ended

  
   

Consumer Floral & Gifts

    

BloomNet

    

Gourmet Foods & Gift Baskets

    

Corporate and Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

% Change

  
   

(dollars in thousands)

  

Net revenues

                                                                                                                

E-commerce

   $ 232,514     $ 252,845       -8.0 %   $ -     $ -       - %   $ 444,812     $ 485,561       -8.4 %   $ -     $ -     $ 677,326     $ 738,406       -8.3 %

Other

     1,835       1,990       -7.8 %     22,837       27,236       -16.2 %     73,642       54,402       35.4 %     (148 )     20       98,166       83,648       17.4 %

Total net revenues

   $ 234,349     $ 254,835       -8.0 %   $ 22,837     $ 27,236       -16.2 %   $ 518,454     $ 539,963       -4.0 %   $ (148 )   $ 20     $ 775,492     $ 822,054       -5.7 %
                                                                                                                 

Other revenues detail

                                                                                                                

Retail and other

     1,835       1,990       -7.8 %     -       -       -       4,559       4,296       6.1 %     -       -       6,394       6,286       1.7 %

Wholesale

     -       -       -       8,571       8,706       -1.6 %     69,083       50,106       37.9 %     -       -       77,654       58,812       32.0 %

BloomNet services

     -       -       -       14,266       18,530       -23.0 %     -       -       -       -       -       14,266       18,530       -23.0 %

Corporate

     -       -       -       -       -       -       -       -       -       113       279       113       279       -59.5 %

Eliminations

     -       -       -       -       -       -       -       -       -       (261 )     (259 )     (261 )     (259 )     -0.8 %

Total other revenues

   $ 1,835     $ 1,990       -7.8 %   $ 22,837     $ 27,236       -16.2 %   $ 73,642     $ 54,402       35.4 %   $ (148 )   $ 20     $ 98,166     $ 83,648       17.4 %

 

   

Six Months Ended

  
   

Consumer Floral & Gifts

    

BloomNet

    

Gourmet Foods & Gift Baskets

    

Corporate and Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

% Change

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

% Change

  
   

(dollars in thousands)

  

Net revenues

                                                                                                                

E-commerce

   $ 366,058     $ 393,180       -6.9 %   $ -     $ -       - %   $ 504,442     $ 555,137       -9.1 %   $ -     $ -     $ 870,500     $ 948,317       -8.2 %

Other

     3,471       3,849       -9.8 %     45,912       56,106       -18.2 %     98,015       82,935       18.2 %     (316 )     (103 )     147,082       142,787       3.0 %

Total net revenues

   $ 369,529     $ 397,029       -6.9 %   $ 45,912     $ 56,106       -18.2 %   $ 602,457     $ 638,072       -5.6 %   $ (316 )   $ (103 )   $ 1,017,582     $ 1,091,104       -6.7 %
                                                                                                                 

Other revenues detail

                                                                                                                

Retail and other

   $ 3,471     $ 3,849       -9.8 %   $ -     $ -       -     $ 6,343     $ 6,230       1.8 %   $ -     $ -     $ 9,814     $ 10,079       -2.6 %

Wholesale

     -       -       -       18,683       20,503       -8.9 %     91,672       76,705       19.5 %     -       -       110,355       97,208       13.5 %

BloomNet services

     -       -       -       27,229       35,603       -23.5 %     -       -       -       -       -       27,229       35,603       -23.5 %

Corporate

     -       -       -       -       -       -       -       -       -       202       549       202       549       -63.2 %

Eliminations

     -       -       -       -       -       -       -       -       -       (518 )     (652 )     (518 )     (652 )     20.6 %

Total other revenues

   $ 3,471     $ 3,849       -9.8 %   $ 45,912     $ 56,106       -18.2 %   $ 98,015     $ 82,935       18.2 %   $ (316 )   $ (103 )   $ 147,082     $ 142,787       3.0 %

 

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Revenue by sales channel:

 

E-commerce revenues (combined online and telephonic) decreased 8.3% and 8.2% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, primarily due to the decline in demand across our three segments, as well as product mix with customers trending toward lower price point items.

 

During the three and six months ended December 29, 2024, the Company fulfilled approximately 7.4 million and 9.8 million orders through its e-commerce sales channel (online and telephonic sales), a decrease of 7.2% and 6.9%, respectively, compared to the same periods of the prior year. During the three and six months ended December 29, 2024, average order value decreased 1.2% and 1.4% to $92.02 and $88.82, respectively, compared to the same periods in the prior year.  The average order value decreased as a result of higher promotions due to a competitive market and product mix as the Company has introduced a wider selection of more modestly priced items to target a broader consumer base. 

 

Other revenues are comprised of the Company’s BloomNet segment, as well as the wholesale and retail channels of its Consumer Floral & Gifts and Gourmet Foods & Gift Baskets segments.

 

Other revenues during the three and six months ended December 29, 2024 increased 17.4% and 3.0%, respectively, compared to the same periods of the prior year, due to higher wholesale volumes within the Gourmet Foods & Gift Baskets segment due to increased orders from big box retailers, which was partially offset by lower BloomNet revenues due to lower order volume through the network, including our 1-800-Flowers brand.

 

Revenue by segment:

 

Consumer Floral & Gifts – this segment, which includes the operations of the 1-800-Flowers.com, PersonalizationMall, Things Remembered and Alice’s Table brands, derives revenue from the sale of consumer floral products and gifts through its e-commerce sales channels (telephonic and online sales), retail stores, and royalties from its franchise operations.

 

Net revenues within this segment decreased 8.0% and 6.9% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to continued macro-economic pressure and use of promotional offerings due to the competitive environment.

 

During the three and six months ended December 29, 2024, Consumer Floral & Gifts orders through its e-commerce sales channel (online and telephonic sales) decreased 7.3% and 5.8%, respectively, compared to the same periods of the prior year. In addition, the average order value decreased 0.8% and 1.1%, respectively, as a result of product mix trending towards lower price point items and higher promotions due to the competitive market.

 

BloomNet - revenues in this segment are derived from membership fees, as well as product and service offerings.

 

Net revenues decreased 16.2% and 18.2% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year. The net revenue decline was primarily due to lower service revenues, which were attributable to a decline in order volume processed through the network.

 

 

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Gourmet Foods & Gift Baskets - this segment includes the operations of Harry & David, Wolferman’s, Cheryl’s Cookies, The Popcorn Factory, 1-800-Baskets/DesignPac, Shari’s Berries, Vital Choice, and since July 1, 2024, Scharffen Berger. Revenue is derived from the sale of gourmet fruits, cookies, baked gifts, premium chocolates and confections, gourmet popcorn, gift baskets, dipped berries, prime steaks, chops, and fish, through the Company’s e-commerce sales channels (telephonic and online sales) and company-owned and operated retail stores under the Harry & David and Cheryl’s Cookies brand names, as well as wholesale operations.

 

Net revenues within this segmentdecreased4.0% and 5.6% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, as a result of lower e-commerce revenues, which were impacted by lower demand, partially offset by increased wholesale volume as big box retailers increased orders in the current year. In addition, the implementation of a new order management system for our Harry & David brand negatively impacted sales in the current period by approximately $20 million.

 

During the three and six months ended December 29, 2024, Gourmet Foods & Gift Baskets orders through its e-commerce sales channel (online and telephonic sales) decreased 7.0% and 8.0%, respectively, compared to the same periods of the prior year. In addition, the average order value decreased 1.5% and 1.2%, respectively, as a result of product mix trending towards lower price point items and the higher promotions due to the competitive market. 

 

Gross profit

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Gross profit

   $ 335,593     $ 355,697       -5.7 %   $ 427,912     $ 457,625       -6.5 %

Gross profit %

     43.3 %     43.3 %             42.1 %     41.9 %        

 

Gross profit consists of net revenues less cost of revenues, which is comprised primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third parties, and associated costs, including inbound and outbound shipping charges. Additionally, cost of revenues includes labor and facility costs related to direct-to-consumer and wholesale production operations, as well as payments made to sending florists related to order volume referred through the Company’s BloomNet network. 

 

Gross profit decreased 5.7% and 6.5% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to lower revenues as noted above.

 

During the three months ended December 29, 2024, the gross profit percentage was in-line with the same period of the prior year. During the six months ended December 29, 2024, the gross profit percentage increased 20 basis points compared to the same period of the prior year, which was driven by increased gross profit percentage in the BloomNet and Gourmet Foods & Gift Baskets segments.

 

Gross profit by segment follows:

 

Consumer Floral & Gifts segment - Gross profit decreased by 10.0% and 8.0% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to the impact of the lower revenues noted above, as well as the unfavorable gross profit percentage primarily attributable to higher cost of merchandise. 

 

BloomNet segment - Gross profit decreased by 10.4% and 15.7% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to the decrease in revenues noted above, partially offset by an increase in the gross profit percentage. Gross profit percentage increased in comparison to the same periods of the prior year due to lower florist rebates, which was driven by lower florist-to-florist volume.

 

Gourmet Foods & Gift Baskets segment - Gross profit decreased by 3.3% and 4.5% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, due to the decrease in revenue noted above, partially offset by a slightly improved gross profit percentage. Gross profit percentage increased 30 basis points and 50 basis points during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year. The increased gross profit percentage was attributable to lower delivery and shipping costs and labor efficiencies, which was partially offset by a higher cost of merchandise and incremental costs associated with the implementation of a new order management system for our Harry & David Brand. 

 

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Marketing and sales expense

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Marketing and sales

   $ 187,003     $ 188,557       -0.8 %   $ 269,100     $ 271,075       -0.7 %

Percentage of net revenues

     24.1 %     22.9 %             26.4 %     24.8 %        

 

Marketing and sales expense consists primarily of advertising and promotional expenditures, catalog costs, online portal and search costs, retail store and fulfillment operations (other than costs included in cost of revenues) and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. 

 

Marketing and sales expense decreased 0.8% and 0.7% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, mainly related to decreased labor costs, which was partially offset by increased advertising costs due to a competitive environment.

 

Technology and development expense 

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Technology and development

   $ 15,973     $ 14,822       7.8 %   $ 31,612     $ 30,126       4.9 %

Percentage of net revenues

     2.1 %     1.8 %             3.1 %     2.8 %        

 

Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, design, content development, and maintenance and support costs related to the Company’s order entry, customer service, fulfillment, and database systems.

 

Technology and development expense increased by 7.8% and 4.9% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, primarily due to higher development and consulting costs for the Company's technology platform enhancements, including incremental costs relating to the implementation of a new customer service platform and order management system.

 

General and administrative expense

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

General and administrative

   $ 27,410     $ 27,154       0.9 %   $ 55,936     $ 55,643       0.5 %

Percentage of net revenues

     3.5 %     3.3 %             5.5 %     5.1 %        

 

General and administrative expense consists of payroll and other expenses in support of the Company’s executive, finance and accounting, legal, human resources and other administrative functions, as well as professional fees and other general corporate expenses.

 

General and administrative expenses increased 0.9% and 0.5% during the three and six months ended December 29, 2024, respectively, compared to the same periods of the prior year, primarily due to an increase in insurance costs, partially offset by lower labor costs, professional fees, and changes in the value of the Company’s NQDC Plan investments (offset in Other income, net below).

 

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Depreciation and amortization expense

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Depreciation and amortization

   $ 14,130     $ 14,152       -0.2 %   $ 27,168     $ 27,346       -0.7 %

Percentage of net revenues

     1.8 %     1.7 %             2.7 %     2.5 %        

 

Depreciation and amortization expense was essentially in-line with the prior year, during the three and six months ended December 29, 2024.

 

Intangible impairment

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

     %    

December 29,

    

December 31,

     %  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Intangible impairment

   $ -     $ 19,762       -100.0 %   $ -     $ 19,762       -100.0 %

 

During the three and six months ended December 31, 2023, the Company recorded a non-cash impairment charge of $19.8 million related to its PersonalizationMall trademark, due to a decline in the actual and projected revenue, combined with a higher discount rate resulting from the higher interest rate environment.  See Note 6 – Goodwill and other intangibles, net in Item 1 for further information.

 

Interest expense, net

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Interest expense, net

   $ 4,396     $ 4,611       -4.7 %   $ 7,756     $ 8,093       -4.2 %

 

Interest expense, net consists primarily of interest expense and amortization of deferred financing costs attributable to the Company’s credit facility (See Note 10 – Long-term debt, net in Item 1 for details), net of income earned on the Company’s available cash balances.

 

Interest expense was lower compared to the prior year, during the three and six months ended December 29, 2024, driven by the lower interest rates and outstanding Term Loan balance, offset by increased borrowings against our revolving credit facility throughout the quarter.

 

Other income, net

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

%

    

December 29,

    

December 31,

    

%

  
   

2024

    

2023

    

Change

    

2024

    

2023

    

Change

  
   

(dollars in thousands)

  
                                                 

Other income, net

   $ (1,164 )   $ (2,736 )     57.5 %   $ (2,931 )   $ (2,262 )     -29.6 %

 

Other income, net consists primarily of investment losses (gains) on the Company’s NQDC Plan investments (for which the offsetting expense was recorded in the general and administration expense above).

 

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Income Taxes

 

The Company recorded an income tax expense of $23.5 million and $9.1 million, during the three and six months ended December 29, 2024, respectively compared to an income tax expense of $26.5 million and $16.2 million, during the three and six months ended December 31, 2023, respectively. The Company’s effective tax rate for the three and six months ended December 29, 2024 was 26.7% and 23.2%, respectively, compared to 29.6% and 33.8% in the same respective periods of the prior year. The Company’s effective tax rate for the three and six months ended December 29, 2024 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes, tax deficiencies (shortfalls) from stock-based compensation and increases in valuation allowances, partially offset by tax credits. The Company’s effective tax rate for three and six months ended December 31, 2023 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes and non-deductible executive compensation, partially offset by tax credits. The Company's effective tax rate for the three and six months ended December 31, 2023, was further impacted by the intangible impairment charge, which reduced the amount of income reflected in the Company’s estimated annual effective tax rate.

 

Liquidity and Capital Resources

 

Liquidity and borrowings

 

The Company's principal sources of liquidity are cash on hand, cash flows generated from operations, and borrowings available under the Company’s credit agreement (see Note 10 – Long-term debt, net in Item 1 for details). At December 29, 2024, the Company had working capital of $167.3 million, including cash and cash equivalents of $247.2 million, compared to working capital of $157.9 million, including cash and cash equivalents of $159.4 million, at June 30, 2024. 

 

Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, is expected to generate over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother’s Day, Valentine’s Day, Easter, and Administrative Professionals Week, revenues also have historically risen during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter.

 

During the first two quarters of fiscal 2025, the Company borrowed under its revolving credit agreement in order to fund pre-holiday manufacturing and inventory procurement requirements, with borrowings peaking at $110.0 million in November 2024. Cash generated from operations during the Christmas holiday shopping season enabled the Company to repay the borrowings under the Revolver in December 2024.  Based on current projected cash flows, the Company believes that the available cash balances will be sufficient to provide for the Company's operating needs through the remainder of fiscal 2025, at which time the Company would again expect to borrow against its Revolver to fund pre-holiday manufacturing and inventory purchases.  The Company had no amounts outstanding under the Revolver as of December 29, 2024. In addition, during the second quarter of fiscal 2025, the Company made a payment of $27.5 million on its Term Loan, which includes a $25.0 million prepayment.

 

While we believe that our sources of funding will be sufficient to meet our anticipated operating cash needs for at least the next twelve months, any projections of future cash needs and cash flows are subject to substantial uncertainty. We continually evaluate, and will, from time to time, consider the acquisition of, or investment in, complementary businesses, products, services, capital infrastructure, and technologies, which might affect our liquidity requirements or cause us to require additional financing.

 

Cash Flows

 

Net cash provided by operating activities of $151.3 million, for the six months ended December 29, 2024, was primarily attributable to the Company’s net income during the period, adjusted by non-cash charges for depreciation and amortization and stock-based compensation, combined with seasonal changes in net working capital, including increases in accounts payable and accrued expenses and trade receivables and a decrease in inventory.

 

Net cash used in investing activities of $26.0 million, for the six months ended December 29, 2024, was attributable to capital expenditures primarily related to the Company's technology and automation initiatives, and the acquisition of Scharffen Berger as noted above.

 

Net cash used in financing activities of $37.5 million, for the six months ended December 29, 2024, related primarily to net repayment of bank borrowings under the Company's working capital line of credit, as well as payments of $30.0 million on the Company's Term Loan, which includes a $25.0 million prepayment, and the repurchase of common stock of $7.7 million.

 

 

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Free Cash Flow

 

Free cash flow was positive $128.3 million for the six months ended December 29, 2024, compared with free cash flow of positive $195.0 million for the six months ended December 31, 2023, a decrease of $66.7 million primarily driven by a decrease in cash flows from operations primarily driven by lower net income, adjusted for non-cash items, as well as timing of changes in working capital.  Refer to "Definitions of non-GAAP Financial Measures" for reconciliation of non-GAAP results to applicable GAAP results.

 

Stock Repurchase Program

 

See Item 2 in Part II below for details.

 

Contractual Obligations

 

At December 29, 2024, the Company’s contractual obligations consist of:

 

●

Long-term debt obligations - payments due under the Company's credit agreement (see Note 10 – Long-term debt, net in Item 1 for details and payments due by period).

●

Operating lease obligations - payments due under the Company’s operating leases (see Note 8 – Leases in Item 1 for details and payments due by period for the long-term operating leases).

●

Purchase commitments - consisting primarily of inventory and IT-related equipment purchase orders and license agreements made in the ordinary course of business – see below for the contractual payments due by period.

 

   

Payments due by period

  
   

(in thousands)

  
   

Remaining

                                                  
   

Fiscal

    

Fiscal

    

Fiscal

    

Fiscal

    

Fiscal

                  
   

2025

    

2026

    

2027

    

2028

    

2029

    

Thereafter

    

Total

  

Purchase commitments

   $ 68,221     $ 13,300     $ 6,224     $ 3,889     $ 3,801     $ 88     $ 95,523  

 

Critical Accounting Estimates

 

As disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024, the discussion and analysis of the Company’s financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in conformity with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances, and management evaluates its estimates and assumptions on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions. The Company’s most critical accounting policies relate to goodwill, other intangible assets and income taxes. There have been no significant changes to the assumptions and estimates related to the Company’s critical accounting policies since June 30, 2024.

 

Recently Issued Accounting Pronouncements 

 

See Note 1 - Accounting Policies in Item 1 for details regarding the impact of accounting standards that were recently issued on our consolidated financial statements.

 

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Forward Looking Information and Factors that May Affect Future Results

 

Our disclosure and analysis in this report contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” "should," “goal,” “target” or similar words or phrases. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including:

 

●

the Company’s ability:

 

 

o

to achieve revenue and profitability;
 

o

to leverage its operating platform and reduce operating expenses;
 

o

to manage the seasonality of its business;
 

o

to cost effectively acquire and retain customers;
 

o 

to successfully integrate acquired businesses and assets;
 

o 

to reduce working capital requirements and capital expenditures;
 

o 

to mitigate the impact of supply chain cost and capacity constraints;
 

o

to compete against existing and new competitors;
 

o

to manage expenses associated with sales and marketing and necessary general and administrative and technology investments;
 

o 

to address the effects of changes in accounting policies, practices, or assumptions, including changes that could potentially require future impairment charges;
  o  to achieve its guidance for the full fiscal year;
  o  to successfully execute its strategic initiatives; and
  o  to reduce promotional activities and achieve more efficient marketing programs.

 

●

the outcome of contingencies, including legal proceedings in the normal course of business; and

●

general consumer sentiment and economic conditions that may affect, among other things, the levels of discretionary customer purchases of the Company’s products and the costs of shipping and labor.

 

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated, or projected. Investors should bear this in mind as they consider forward-looking statements.

 

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our Forms 10-Q, 8-K and 10-K reports to the Securities and Exchange Commission. Our Annual Report on Form 10-K for the fiscal year ended June 30, 2024 listed various important factors that could cause actual results to differ materially from expected and historic results. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. Readers can find them in Part I, Item 1A, of that filing under the heading “Cautionary Statements Under the Private Securities Litigation Reform Act of 1995”. We incorporate that section of that Form 10-K in this filing and investors should refer to it. In addition, please refer to any additional risk factors in Part II, Item 1A in this Form 10-Q.

 

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

The Company is exposed to market risk from the effect of interest rate changes.

 

Interest Rate Risk

 

The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s investment of available cash balances and its long-term debt. The Company generally invests its cash and cash equivalents in investment grade corporate and U.S. government securities. Borrowings under the Company’s credit facility bear interest at a variable rate, plus an applicable margin, and therefore expose the Company to market risk for changes in interest rates. The effect of a 50 basis point increase in current interest rates on the Company’s interest expense would be approximately $0.3 million and $0.5 million during the three and six months ended December 29, 2024, respectively.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures 

 

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as of December 29, 2024. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have each concluded that the Company’s disclosure controls and procedures were effective as of December 29, 2024.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting identified in connection with the Company’s evaluation required by Rules 13a-15(d) or 15d-15(d) of the Securities Exchange Act of 1934 during the quarter ended December 29, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

 

Limitations on Effectiveness of Controls and Procedures

 

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, as specified above. Our management recognizes that any control system, no matter how well designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met.

 

PART II. – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

Litigation

 

There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the final resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity. 

 

ITEM 1A. RISK FACTORS

 

There were no material changes to the Company’s risk factors as discussed in Part 1, Item 1A-Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

 

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

The Company has a stock repurchase plan through which purchases can be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The repurchase program is financed utilizing available cash. On April 22, 2021, the Company’s Board of Directors authorized an increase to its stock repurchase plan of up to $40.0 million. In addition, on February 3, 2022, the Company’s Board of Directors authorized an increase to its stock repurchase plan of up to $40.0 million. As of December 29, 2024,  $13.9 million remained authorized under the plan.

 

The following table sets forth, for the months indicated, the Company’s purchase of common stock during the three months ended December 29, 2024:

 

                   

Total

    

Dollar

  
                   

Number of

    

Value of

  
                   

Shares

    

Shares

  
                   

Purchased

    

that May

  
                   

as Part of

    

Yet Be

  
   

Total

    

Average

    

Publicly

    

Purchased

  
   

Number of

    

Price

    

Announced

    

Under the

  
   

Shares

    

Paid Per

    

Plans or

    

Plans or

  

Period

  

Purchased

    

Share (1)

    

Programs

    

Programs

  
   

(in thousands, except shares and average price paid per share)

          
                                 

09/30/24 – 10/27/24

     200,000     $ 8.02       200,000     $ 18,706  

10/28/24 – 11/24/24

     283,913     $ 8.41       283,913     $ 16,312  

11/25/24 – 12/29/24

     306,601     $ 7.89       306,601     $ 13,888  

Total

     790,514     $ 8.11       790,514          

 

(1)

Average price per share excludes commissions and other transaction fees.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable. 

 

ITEM 5. OTHER INFORMATION

 

Rule 10b5-1 Plans

 

During the three months ended December 29, 2024, none of the directors or executive officers adopted or terminated a "Rule 10b5- 1 trading arrangement" or a "non-rule 10b5- 1 trading arrangement", as defined in Item 408 of Regulation S-K.
 

 

 

35
Table of Contents

     

 

ITEM 6. EXHIBITS

 

31.1

Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

31.2

Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

32.1

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *

101.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Document

101.PRE

Inline XBRL Taxonomy Definition Presentation Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

* Filed herewith.

 

 

36
Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

1-800-FLOWERS.COM, Inc. 

(Registrant)
 

Date: January 31, 2025

/s/ James F. McCann      

James F. McCann
Executive Chairman and Chief Executive Officer
(Principal Executive Officer)  
   

Date: January 31, 2025

/s/ James M. Langrock      
James M. Langrock
Senior Vice President, Treasurer and
Chief Financial Officer (Principal
Financial and Accounting Officer)

 

37

Exhibit 31.1

 

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(RULE 13a-14(a))

 

 

I, James F. McCann, certify that:

 

 

(1)

I have reviewed this quarterly report on Form 10-Q of 1-800-FLOWERS.COM, Inc.;

 

 

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

(4)

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

(5)

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

Date: January 31, 2025

/s/ James F. McCann
 

James F. McCann
 

Executive Chairman and Chief Executive Officer
   

 

 

 

Exhibit 31.2

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(RULE 13a-14(a))

 

 

I, James M. Langrock, certify that:

 

 

(1)

I have reviewed this quarterly report on Form 10-Q of 1-800-FLOWERS.COM, Inc.;

 

 

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

 

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

 

(4)

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

 

(5)

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

Date: January 31, 2025

/s/ James M. Langrock
 

James M. Langrock
 

Senior Vice President, Treasurer and
 

Chief Financial Officer

 

 

 

Exhibit 32.1

 

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of 1-800-FLOWERS.COM, Inc. (the “Company”) hereby certifies, to the best of such officer's knowledge, that:

 

(1) the Quarterly Report on Form 10-Q of the Company for the quarter ended December 29, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Dated: January 31, 2025

/s/ James F. McCann
 

James F. McCann

Executive Chairman and Chief Executive Officer
   

Dated: January 31, 2025

/s/ James M. Langrock
 

James M. Langrock

Senior Vice President, Treasurer

and Chief Financial Officer

 

These certifications are furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certifications will not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates them by reference.

 

 

 
v3.24.4
Document And Entity Information - shares
 6 Months Ended
Dec. 29, 2024
Jan. 24, 2025
Document Information [Line Items]    
Entity Central Index Key 0001084869  
Entity Registrant Name 1 800 FLOWERS COM INC  
Amendment Flag false  
Current Fiscal Year End Date --06-29  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2025  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 29, 2024  
Document Transition Report false  
Entity File Number 0-26841  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 11-3117311  
Entity Address, Address Line One Two Jericho Plaza, Suite 200  
Entity Address, City or Town Jericho  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 11753  
City Area Code 516  
Local Phone Number 237-6000  
Title of 12(b) Security Class A common stock  
Trading Symbol FLWS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Common Class B [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   27,068,221
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   36,532,944
v3.24.4
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Current assets:    
Cash and cash equivalents $ 247,220 $ 159,437
Trade receivables, net 61,352 18,024
Inventories 157,438 176,591
Prepaid and other 26,884 31,680
Total current assets 492,894 385,732
Property, plant and equipment, net 223,178 223,789
Operating lease right-of-use assets 110,455 113,926
Goodwill 156,648 156,537
Total identifiable intangible assets, net 115,079 116,216
Other assets 39,516 36,448
Total assets 1,137,770 1,032,648
Current liabilities:    
Accounts payable 113,588 80,005
Accrued expenses 193,558 121,303
Current maturities of long-term debt 0 10,000
Current portion of long-term operating lease liabilities 18,490 16,511
Total current liabilities 325,636 227,819
Long-term debt, net 157,474 177,113
Long-term operating lease liabilities 102,038 105,866
Deferred tax liabilities, net 17,905 19,402
Other liabilities 39,610 36,106
Total liabilities 642,663 566,306
Commitments and contingencies (See Note 13)
Stockholders' equity:    
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued 0 0
Additional paid-in capital 405,450 399,165
Retained earnings 295,136 264,978
Accumulated other comprehensive loss (127) (127)
Treasury stock, at cost, 22,596,217 and 21,645,290 Class A shares at December 29, 2024 and June 30, 2024, respectively and 5,280,000 Class B shares at December 29, 2024 and June 30, 2024 (206,268) (198,585)
Total stockholders’ equity 495,107 466,342
Total liabilities and stockholders’ equity 1,137,770 1,032,648
Common Class A [Member]    
Stockholders' equity:    
Common stock 593 588
Common Class B [Member]    
Stockholders' equity:    
Common stock $ 323 $ 323
v3.24.4
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Dec. 29, 2024
Jun. 30, 2024
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 10,000,000 10,000,000
Preferred stock, issued (in shares) 0 0
Common Class A [Member]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 200,000,000 200,000,000
Common stock, issued (in shares) 59,281,253 58,792,695
Treasury stock, shares (in shares) 22,596,217 21,645,290
Common Class B [Member]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 200,000,000 200,000,000
Common stock, issued (in shares) 32,348,221 32,348,221
Treasury stock, shares (in shares) 5,280,000 5,280,000
v3.24.4
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Net revenues $ 775,492 $ 822,054 $ 1,017,582 $ 1,091,104
Cost of revenues (excludes depreciation and amortization) 439,899 466,357 589,670 633,479
Gross profit 335,593 355,697 427,912 457,625
Operating expenses:        
Marketing and sales 187,003 188,557 269,100 271,075
Technology and development 15,973 14,822 31,612 30,126
General and administrative 27,410 27,154 55,936 55,643
Depreciation and amortization 14,130 14,152 27,168 27,346
Intangible impairment 0 19,762 0 19,762
Total operating expenses 244,516 264,447 383,816 403,952
Operating income 91,077 91,250 44,096 53,673
Interest expense, net 4,396 4,611 7,756 8,093
Other income, net (1,164) (2,736) (2,931) (2,262)
Income before income taxes 87,845 89,375 39,271 47,842
Income tax expense 23,497 26,468 9,113 16,177
Net income and comprehensive net income $ 64,348 $ 62,907 $ 30,158 $ 31,665
Basic net income per common share (in dollars per share) $ 1.01 $ 0.97 $ 0.47 $ 0.49
Diluted net income per common share (in dollars per share) $ 1 $ 0.97 $ 0.47 $ 0.49
Weighted average shares used in the calculation of net income per common share:        
Basic (in shares) 63,836 64,835 64,017 64,814
Diluted (in shares) 64,306 65,177 64,501 65,155
v3.24.4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common Stock Outstanding [Member]
Common Class A [Member]
Common Stock Outstanding [Member]
Common Class B [Member]
Common Stock [Member]
Common Class A [Member]
Common Stock [Member]
Common Class B [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Stock, Common [Member]
Total
Balance (in shares) at Jul. 02, 2023 58,273,747 32,348,221           25,845,875  
Balance at Jul. 02, 2023     $ 583 $ 323 $ 388,215 $ 271,083 $ (170) $ (188,191) $ 471,843
Net income     0 0 0 31,665 0 $ 0 31,665
Stock-based compensation (in shares) 465,112 0           0  
Stock-based compensation     5 0 4,590 0 0 $ 0 4,595
Exercise of stock options (in shares) 5,110 0           0  
Exercise of stock options     0 0 44 0 0 $ 0 44
Acquisition of Class A treasury stock     0 0 0 0 0 $ (4,787) (4,787)
Acquisition of Class A treasury stock (in shares)               523,461  
Balance (in shares) at Dec. 31, 2023 58,743,969 32,348,221           26,369,336  
Balance at Dec. 31, 2023     588 323 392,849 302,748 (170) $ (192,978) 503,360
Balance (in shares) at Oct. 01, 2023 58,309,547 32,348,221           25,856,358  
Balance at Oct. 01, 2023     583 323 390,579 239,841 (170) $ (188,265) 442,891
Net income     0 0 0 62,907 0 $ 0 62,907
Stock-based compensation (in shares) 429,312 0           0  
Stock-based compensation     5 0 2,226 0 0 $ 0 2,231
Exercise of stock options (in shares) 5,110 0           0  
Exercise of stock options     0 0 44 0 0 $ 0 44
Acquisition of Class A treasury stock     0 0 0 0 0 $ (4,713) (4,713)
Acquisition of Class A treasury stock (in shares)               512,978  
Balance (in shares) at Dec. 31, 2023 58,743,969 32,348,221           26,369,336  
Balance at Dec. 31, 2023     588 323 392,849 302,748 (170) $ (192,978) 503,360
Balance (in shares) at Jun. 30, 2024 58,792,695 32,348,221           26,925,290  
Balance at Jun. 30, 2024     588 323 399,165 264,978 (127) $ (198,585) 466,342
Net income     0 0 0 30,158 0 $ 0 30,158
Stock-based compensation (in shares) 467,301 0           0  
Stock-based compensation     5 0 6,103 0 0 $ 0 6,108
Exercise of stock options (in shares) 21,257 0           0  
Exercise of stock options     0 0 182 0 0 $ 0 182
Acquisition of Class A treasury stock     0 0 0 0 0 $ (7,683) (7,683)
Acquisition of Class A treasury stock (in shares)               950,927  
Balance (in shares) at Dec. 29, 2024 59,281,253 32,348,221           27,876,217  
Balance at Dec. 29, 2024     593 323 405,450 295,136 (127) $ (206,268) 495,107
Balance (in shares) at Sep. 29, 2024 58,798,430 32,348,221           27,085,703  
Balance at Sep. 29, 2024     588 323 401,685 230,788 (127) $ (199,840) 433,417
Net income     0 0 0 64,348 0 $ 0 64,348
Stock-based compensation (in shares) 466,301 0           0  
Stock-based compensation     5 0 3,624 0 0 $ 0 3,629
Exercise of stock options (in shares) 16,522 0           0  
Exercise of stock options     0 0 141 0 0 $ 0 141
Acquisition of Class A treasury stock     0 0 0 0 0 $ (6,428) (6,428)
Acquisition of Class A treasury stock (in shares)               790,514  
Balance (in shares) at Dec. 29, 2024 59,281,253 32,348,221           27,876,217  
Balance at Dec. 29, 2024     $ 593 $ 323 $ 405,450 $ 295,136 $ (127) $ (206,268) $ 495,107
v3.24.4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Operating activities:    
Net income $ 30,158 $ 31,665
Reconciliation of net income to net provided by operating activities, net of acquisitions:    
Intangible impairment 0 19,762
Depreciation and amortization 27,168 27,346
Amortization of deferred financing costs 361 361
Deferred income taxes (1,496) (6,108)
Bad debt expense 131 225
Stock-based compensation 6,108 4,595
Other non-cash items (412) (385)
Changes in operating items:    
Trade receivables (43,400) (26,384)
Inventories 20,446 29,808
Prepaid and other 5,850 6,640
Accounts payable and accrued expenses 104,671 125,404
Other assets and liabilities 1,722 (169)
Net cash provided by operating activities 151,307 212,760
Investing activities:    
Acquisitions, net of cash acquired (3,000) 0
Capital expenditures (23,023) (17,807)
Net cash used in investing activities (26,023) (17,807)
Financing activities:    
Acquisition of treasury stock (7,683) (4,787)
Proceeds from exercise of employee stock options 182 44
Proceeds from bank borrowings 110,000 82,000
Repayment of bank borrowings (140,000) (87,000)
Net cash used in financing activities (37,501) (9,743)
Net change in cash and cash equivalents 87,783 185,210
Cash and cash equivalents:    
Beginning of period 159,437 126,807
End of period $ 247,220 $ 312,017
v3.24.4
Note 1 - Accounting Policies
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

Note 1 – Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared by 1-800-FLOWERS.COM, Inc. and Subsidiaries (the “Company”) in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended December 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 29, 2025. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, which provides a more complete understanding of our accounting policies, financial position, operating results and other matters.

 

The Company’s quarterly results may experience seasonal fluctuations. Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, is expected to generate over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother's Day, Valentine’s Day, Easter, and Administrative Professionals Week, revenues also have historically risen during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter.

 

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

Revenue Recognition

 

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

 

A description of our principal revenue generating activities is as follows:

 

●

E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

●

Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received.

●

Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

●

BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and, as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

 

Deferred Revenues

 

Deferred revenues are recorded when the Company has received consideration (i.e. advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

 

Our total deferred revenue as of  June 30, 2024 was $25.0 million (included in “Accrued expenses” on our consolidated balance sheets), of which $9.0 million and $22.0 million was recognized as revenue during the three and six months ended December 29, 2024. The deferred revenue balance as of  December 29, 2024 was $36.1 million.

 

Impairment Evaluation

 

The Company performs its annual assessment of goodwill and indefinite-lived intangible impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist.  During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company's PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename.  This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

 

The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.  See Note 6 – Goodwill and other intangibles, net for further information.

 

Recently Issued Accounting Pronouncements

 

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.  ASU 2024-03 requires enhanced disclosures about a business entity's expenses, includes enhanced interim disclosure requirements, and requires additional disclosure about specific types of expenses included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses.  The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted.  ASU 2024-03 allows for either a prospective or retrospective approach on adoption.  The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

 
v3.24.4
Note 2 - Net Income (Loss) Per Common Share
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

 

Note 2 – Net Income (Loss) Per Common Share

 

Basic net income per common share is computed by dividing the net income during the period by the weighted average number of common shares outstanding during the period. Diluted net income per common share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. 

 

The following table sets forth the computation of basic and diluted net income per common share:

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands, except per share data)

  

Numerator:

                                

Net income

   $ 64,348     $ 62,907     $ 30,158     $ 31,665  
                                 

Denominator:

                                

Weighted average shares outstanding

     63,836       64,835       64,017       64,814  

Effect of dilutive stock options and unvested restricted stock awards

     470       342       484       341  
                                 

Diluted weighted-average shares outstanding

     64,306       65,177       64,501       65,155  
                                 

Net income per common share

                                

Basic

   $ 1.01     $ 0.97     $ 0.47     $ 0.49  

Diluted

   $ 1.00     $ 0.97     $ 0.47     $ 0.49  
v3.24.4
Note 3 - Acquisitions
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Note 3 – Acquisitions

 

Acquisition of Scharffen Berger

 

On July 1, 2024, the Company completed its acquisition of certain assets of Scharffen Berger®, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment. The Company used cash on hand to fund the purchase.

 

The total consideration of $3.3 million was primarily allocated to the identifiable assets acquired and liabilities assumed based on the preliminary estimates of their fair values on the acquisition date, including: property, plant and equipment of $2.0 million, inventory of $1.3 million and goodwill of $0.1 million (deductible for income tax purposes), offset by net liabilities of $0.1 million.  The Company is in the process of finalizing its allocation and this may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain additional intangible assets, revision of useful lives of intangible assets, and the determination of any residual amount that will be allocated to goodwill.

 

Scharffen Berger annual revenues and results of operations, based on its most recent available financial information, is deemed immaterial to the Company's consolidated financial statements and, as such, pro forma results of operations have not been presented.

 

Acquisition of Card Isle

 

On April 3, 2024, the Company, within its BloomNet segment, completed its acquisition of certain assets of Card Isle®, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on hand to fund the purchase.

 

The total consideration of $3.6 million was allocated to the identifiable assets acquired and liabilities assumed based on the estimates of their fair values on the acquisition date. During the quarter ended December 29, 2024, the Company finalized its purchase price allocation, and the consideration transferred was allocated to goodwill of $3.0 million (deductible for income tax purposes) and artist contracts of $0.6 million (5-year life). 

 

Card Isle annual revenues and results of operations, based on its most recently available financial information, is deemed immaterial to the Company's consolidated financial statements and, as such, pro forma results of operations have not been presented.
v3.24.4
Note 4 - Inventory
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Inventory Disclosure [Text Block]

 

Note 4 – Inventory

 

The Company’s inventory, valued at the lower of cost or net realizable value, includes purchased and manufactured finished goods for sale, packaging supplies, crops, raw material ingredients for manufactured products and associated manufacturing labor, and is classified as follows:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Finished goods

   $ 100,896     $ 94,590  

Work-in-process

     12,058       25,849  

Raw materials

     44,484       56,152  

Total inventory

   $ 157,438     $ 176,591  
v3.24.4
Note 5 - Property, Plant and Equipment, Net
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]

Note 5 – Property, plant and equipment, net

 

The Company’s property, plant and equipment, net consists of the following:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Land

   $ 33,827     $ 33,827  

Orchards in production and land improvements

     20,917       20,604  

Building and building improvements

     70,035       69,089  

Leasehold improvements

     31,330       31,289  

Production equipment

     135,746       131,664  

Furniture and fixtures

     9,512       9,325  

Computer and telecommunication equipment

     43,951       42,159  

Software

     205,187       176,160  

Capital projects in progress

     11,223       23,172  

Property, plant and equipment, gross

     561,728       537,289  

Accumulated depreciation and amortization

     (338,550 )     (313,500 )

Property, plant and equipment, net

   $ 223,178     $ 223,789  
v3.24.4
Note 6 - Goodwill and Intangible Assets, Net
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and other intangibles, net

 

The following table presents goodwill by segment and the related change in the net carrying amount:

 

                   

Gourmet

          
   

Consumer

            

Foods &

          
   

Floral &

            

Gift

          
   

Gifts

    

BloomNet

    

Baskets

    

Total

  
   

(in thousands)

  

Balance at June 30, 2024

   $ 153,577     $ 2,960     $ -     $ 156,537  

Acquisition of Scharffen Berger

     -       -       111       111  

Balance at December 29, 2024

   $ 153,577     $ 2,960     $ 111     $ 156,648  

   

The Company’s other intangible assets, net consist of the following:

 

         

December 29, 2024

    

June 30, 2024

  
         

Gross

                    

Gross

                  
   

Amortization

    

Carrying

    

Accumulated

            

Carrying

    

Accumulated

          
   

Period

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

  
   

(in years)

    

(in thousands)

  

Intangible assets with determinable lives

                                                      

Investment in licenses

   14 - 16     $ 7,420     $ 6,727     $ 693     $ 7,420     $ 6,674     $ 746  

Customer lists

   3 - 10       29,647       26,986       2,661       29,647       25,932       3,715  

Other

   5 - 14       2,946       2,694       252       2,946       2,664       282  

Total intangible assets with determinable lives

           40,013       36,407       3,606       40,013       35,270       4,743  

Trademarks with indefinite lives

           111,473       -       111,473       111,473       -       111,473  

Total identifiable intangible assets

         $ 151,486     $ 36,407     $ 115,079     $ 151,486     $ 35,270     $ 116,216  

 

Future estimated amortization expense is as follows: remainder of fiscal 2025 - $0.9 million, fiscal 2026 - $1.4 million, fiscal 2027 - $0.6 million, fiscal 2028 - $0.3 million, fiscal 2029 - $0.2 million and thereafter - $0.1 million.

 

The Company performs its annual assessment of goodwill and indefinite-lived intangibles impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment  may exist.

 

During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required. The Company’s impairment test for the indefinite-lived intangible asset encompassed calculating a fair value of the indefinite-lived intangible asset and comparing that result to its carrying value. To determine fair value of the indefinite-lived intangible asset, the Company used an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value. Based on the impairment assessment performed for the quarter ending December 31, 2023, the Company recorded a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename to its estimated fair value. This impairment charge was recorded in the Company’s Consumer Floral & Gifts reporting unit.  The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.
v3.24.4
Note 7 - Investments
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block] Note 7 – Investments

 

Equity investments without a readily determinable fair value

 

Investments in non-marketable equity instruments of private companies, where the Company does not possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method invest ments was $2.4 million as of  December 29, 2024 and June 30, 2024 , respectively. 

 

Equity investments with a readily determinable fair value

 

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 11 - Fair Value Measurements).  
v3.24.4
Note 8 - Leases
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

 

Note 8 – Leases 

 

The Company currently leases plants, warehouses, offices, store facilities, and equipment under various leases through fiscal 2036. Most lease agreements are of a long-term nature (over a year), although the Company does also enter into short-term leases, primarily for seasonal needs. Lease agreements may contain renewal options and rent escalation clauses and require the Company to pay real estate taxes, insurance, common area maintenance and operating expenses applicable to the leased properties. The Company accounts for its leases in accordance with Accounting Standards Codification ("ASC") 842.

 

At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time, by assessing whether the Company has the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset.

 

At the lease commencement date, the Company determines if a lease should be classified as an operating or a finance lease (the Company currently has no finance leases) and recognizes a corresponding lease liability and a right-of-use asset on its consolidated balance sheet. The lease liability is initially and subsequently measured as the present value of the remaining fixed minimum rental payments (including base rent and fixed common area maintenance) using discount rates as of the commencement date. Variable payments (including most utilities, real estate taxes, insurance and variable common area maintenance) are expensed as incurred. Further, the Company elected a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The right-of-use asset is initially and subsequently measured at the carrying amount of the lease liability adjusted for any prepaid or accrued lease payments, remaining balance of lease incentives received, unamortized initial direct costs, or impairment charges relating to the right-of-use asset. Right-of-use assets are assessed for impairment using the long-lived assets impairment guidance. The discount rate used to determine the present value of lease payments is the Company’s estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the Company generally cannot determine the interest rate implicit in the lease.

 

The Company recognizes expense for its operating leases on a straight-line basis over the lease term. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Renewal option periods are included in the measurement of lease liability, where the exercise is reasonably certain to occur. Key estimates and judgments in accounting for leases include how the Company determines: ( 1) lease payments, ( 2) lease term, and ( 3) the discount rate used in calculating the lease liability.

 

Additional information related to the Company's leases is as follows:

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Lease costs:

                                

Operating lease costs

   $ 5,993     $ 5,651     $ 11,997     $ 11,273  

Variable lease costs

     6,829       7,568       13,356       14,082  

Short-term lease cost

     2,310       2,535       3,065       3,418  

Sublease income

     (206 )     (246 )     (436 )     (497 )

Total lease costs

   $ 14,926     $ 15,508     $ 27,982     $ 28,276  
                                 

Cash paid for amounts included in measurement of operating lease liabilities

               $ 10,376     $ 11,300  

Right-of-use assets obtained in exchange for new operating lease liabilities

               $ 5,855     $ 1,784  

 

 

   

December 29,

  
   

2024

  
       

Weighted-average remaining lease term - operating leases (in years)

     7.5  

Weighted-discount rate - operating leases

     4.5 %

 

Maturities of lease liabilities in accordance with ASC 842 as of December 29, 2024 and reconciliation to the consolidated balance sheet are as follows (in thousands):

 

Fiscal Year:

        

Remainder of 2025

   $ 11,884  

2026

     21,875  

2027

     18,956  

2028

     17,979  

2029

     17,031  

Thereafter

     54,123  

Total future minimum lease payments

     141,848  

Less: Imputed remaining interest

     21,320  

Total operating lease liabilities

     120,528  

Less: Current portion of long-term operating lease liabilities

     18,490  

Long-term operating lease liabilities

   $ 102,038
v3.24.4
Note 9 - Accrued Expenses
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 9 – Accrued expenses

 

Accrued expenses consists of the following:

 

   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Payroll and employee benefits

   $ 22,559     $ 29,954  

Deferred revenue

     36,149       25,009  

Accrued marketing expenses

     15,580       10,709  

Accrued florist payout

     12,569       9,526  

Accrued purchases

     43,469       15,338  

Other

     63,232       30,767  

Accrued Expenses

   $ 193,558     $ 121,303  
v3.24.4
Note 10 - Long-term Debt, Net
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

Note 10 – Long-term debt, net

 

The Company’s current and long-term debt consists of the following:

 

  

December 29, 2024

  

June 30, 2024

 
  

(in thousands)

 

Revolver

 $-  $- 

Term Loans

  160,000   190,000 

Deferred financing costs

  (2,526)  (2,887)

Total debt

  157,474   187,113 

Less: current maturities of long-term debt

  -   10,000 

Long-term debt, net

 $157,474  $177,113

 

On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”). The Third Amended Credit Agreement amended and restated the Company’s Second Amended and Restated Credit Agreement, dated as of May 31, 2019 (as amended by the First Amendment, dated as of August 20, 2020, the Second Amendment, dated as of November 8, 2021, and the Third Amendment, dated as of August 29, 2022). The Third Amended Credit Agreement, among other modifications: (i) increased the amount of the outstanding term loan (“Term Loan”) to $200 million, (ii) decreased the amount of the commitments in respect of the revolving credit facility to $225 million, subject to a seasonal reduction to an aggregate amount of $125 million for the period from January 1 to August 1, (iii) extended the maturity date of the outstanding Term Loan and the revolving credit facilities to June 27, 2028, and (iv) increased the applicable interest rate margins for SOFR and base rate loans by 25 basis points.

 

For each borrowing under the Existing Credit Agreement (as defined below), the Company may elect that such borrowing bear interest at an annual rate equal to either: ( 1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate for a one-month interest period plus 1% or ( 2) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.1% for all interest periods.
 

 

On January 28, 2025, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a First Amendment (the “First Amendment”) to the Third Amended Credit Agreement. The First Amendment amended the Third Amended Credit Agreement (the Third Amended Credit Agreement, as amended by the First Amendment, the “Existing Credit Agreement”) by, among other modifications, (1) revising the definition of “Consolidated EBITDA” to (x) provide that extraordinary, unusual or non-recurring cash expenses or losses may be added back to Consolidated Net Income in the calculation of Consolidated EBITDA, (y) clarify that expenses or losses in connection with the implementation or integration of operational systems, information technology or similar upgrades are deemed to constitute extraordinary, unusual or non-recurring expenses or losses, and (z) include an additional add-back to Consolidated EBITDA for the amount of any restructuring charge, accrual, reserve (and increases to existing reserves) or expense, (2) clarifying the application of optional prepayments of Term Loans under the Existing Credit Agreement toward scheduled principal payments of such Term Loans, and (3) revising the definition of “Consolidated Fixed Charges” to clarify that applicable scheduled principal payments of indebtedness are included in Consolidated Fixed Charges only to the extent not offset by the application of prepayments of such indebtedness.

 

The Existing Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of December 29, 2024.  The Existing Credit Agreement is secured by substantially all of the assets of the Company.

 

The principal of the Term Loan is payable at a rate of $2.5 million for the first 8 quarterly installments beginning on September 29, 2023, increasing to a quarterly payment of $5.0 million, commencing on September 26, 2025, for the remaining 11 payments, with the remaining balance of $125.0 million due upon maturity on June 27, 2028.  

 

During the three months ended December 29, 2024, the Company elected to optionally pay down an incremental $25.0 million against the outstanding Term Loan balance.  This payment will be applied toward the installment payments, noted above in direct order of maturity.  

 

Future principal Term Loan payments under the Third Amended Credit Agreement are as follows:  $0.0 million – remainder of fiscal 2025 ,  $0.0 million – fiscal 2026 ,  $20.0 million – fiscal 2027 , and  $140.0 million – fiscal 2028 .
v3.24.4
Note 11 - Fair Value Measurements
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 11 – Fair value measurements

 

Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no trading market exists, the Company believes that the carrying amount of its debt approximates fair value due to its variable nature (these are level 2 investments). The Company’s investments in non-marketable equity instruments of private companies are carried at cost and are periodically assessed for other-than-temporary impairment when an event or circumstances indicate that an other-than-temporary decline in value may have occurred. The Company’s remaining financial assets and liabilities are measured and recorded at fair value (see table below). The Company’s non-financial assets, such as definite lived intangible assets and property, plant and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Goodwill and indefinite lived intangibles are tested for impairment annually, or more frequently, if events occur or circumstances change such that it is more likely than not that an impairment may exist, as required under the accounting standards.

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the guidance are described below:

 

Level 1

Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.

Level 2

Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.

Level 3

Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

 

The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis:

 

   

Carrying

    

Fair Value Measurements

  
   

Value

    

Assets (Liabilities)

  
           

Level 1

    

Level 2

    

Level 3

  
   

(in thousands)

  

Assets (Liabilities) as of December 29, 2024

                                

Trading securities held in a “rabbi trust” (1)

   $ 36,182     $ 36,182     $ -     $ -  
    $ 36,182     $ 36,182     $ -     $ -  
                                 

Assets (Liabilities) as of June 30, 2024

                                

Trading securities held in a “rabbi trust”(1)

   $ 32,805     $ 32,805     $ -     $ -  
    $ 32,805     $ 32,805     $ -     $ -  

 

 

(1)

The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in a rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets. 
v3.24.4
Note 12 - Income Taxes
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

Note 12 – Income taxes

 

The Company computed the interim tax provision using an estimated annual effective rate, adjusted for discrete items. This estimate is used in providing for income taxes on a year-to-date basis and may change in subsequent interim periods. The Company’s effective tax rate for the three and six months ended December 29, 2024 was 26.7% and 23.2%, respectively, compared to 29.6% and 33.8% in the same periods of the prior year. The Company’s effective tax rate for the three and six months ended December 29, 2024 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes, tax deficiencies (shortfalls) from stock-based compensation and increases in valuation allowances, partially offset by tax credits. The Company’s effective tax rate for the three and six months ended December 31, 2023 differed from the U.S. federal statutory rate of 21.0% primarily due to state income taxes and non-deductible executive compensation, partially offset by tax credits. The Company's effective tax rate for the three and six months ended December 31, 2023, was further impacted by the intangible impairment charge, which reduced the amount of income reflected in the Company’s estimated annual effective tax rate.

 

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.  As of December 29, 2024, and June 30, 2024, the Company had valuation allowances of approximately $6.2 million and $4.9 million, respectively, primarily related to certain state and foreign net operating losses. 

 

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company’s fiscal years 2023, 2022 and 2021 remain subject to U.S. federal examination. Due to nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from fiscal 2020. The Company's foreign income tax filings from fiscal 2018 are open for examination by its respective foreign tax authorities, mainly Canada and Brazil. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At December 29, 2024, the Company has an unrecognized tax benefit, including accrued interest and penalties, of approximately $3.4 million (included in "Other liabilities" on our consolidated balance sheet), all of which if fully recognized would impact our effective tax rate. The Company believes that $0.4 million of unrecognized tax positions will be resolved over the next twelve months.

 

 
v3.24.4
Note 13 - Commitments and Contingencies
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

 

Note 13 – Commitments and contingencies

 

Litigation
 
There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the final resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.
v3.24.4
Note 14 - Business Segments
 6 Months Ended
Dec. 29, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 14 – Business segments

 

The Company’s management reviews the results of its operations by the following three business segments:

 

•

Consumer Floral & Gifts,

•

BloomNet, and

•

Gourmet Foods & Gift Baskets

 

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead (see (a) below), nor does it include depreciation and amortization, other (income) expense, net and income taxes, or stock-based compensation, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

 

   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Net Revenues:

                                

Segment Net Revenues:

                                

Consumer Floral & Gifts

   $ 234,349     $ 254,835     $ 369,529     $ 397,029  

BloomNet

     22,837       27,236       45,912       56,106  

Gourmet Foods & Gift Baskets

     518,454       539,963       602,457       638,072  

Corporate

     113       279       202       549  

Intercompany eliminations

     (261 )     (259 )     (518 )     (652 )

Total net revenues

   $ 775,492     $ 822,054     $ 1,017,582     $ 1,091,104  
                                 

Operating Income:

                                

Segment Contribution Margin:

                                

Consumer Floral & Gifts

   $ 21,587     $ 10,593     $ 26,531     $ 19,419  

BloomNet

     7,460       9,088       14,301       18,475  

Gourmet Foods & Gift Baskets

     107,277       118,153       95,024       107,125  

Segment Contribution Margin Subtotal

     136,324       137,834       135,856       145,019  

Corporate (a)

     (31,117 )     (32,432 )     (64,592 )     (64,000 )

Depreciation and amortization

     (14,130 )     (14,152 )     (27,168 )     (27,346 )

Operating income

   $ 91,077     $ 91,250     $ 44,096     $ 53,673  

 

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, stock-based compensation, as well as changes in the fair value of the Company's NQDC Plan. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

 

The following tables represent a disaggregation of revenue from contracts with customers, by channel: 

 

   

Three Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 232,514     $ 252,845     $ -     $ -     $ 444,812     $ 485,561     $ -     $ -     $ 677,326     $ 738,406  

Other

     1,835       1,990       22,837       27,236       73,642       54,402       (148 )     20       98,166       83,648  

Total net revenues

   $ 234,349     $ 254,835     $ 22,837     $ 27,236     $ 518,454     $ 539,963     $ (148 )   $ 20     $ 775,492     $ 822,054  
                                                                                 

Other revenues detail

                                                                                

Retail and other

     1,835       1,990       -       -       4,559       4,296       -       -       6,394       6,286  

Wholesale

     -       -       8,571       8,706       69,083       50,106       -       -       77,654       58,812  

BloomNet services

     -       -       14,266       18,530       -       -       -       -       14,266       18,530  

Corporate

     -       -       -       -       -       -       113       279       113       279  

Eliminations

     -       -       -       -       -       -       (261 )     (259 )     (261 )     (259 )

Total other revenues

   $ 1,835     $ 1,990     $ 22,837     $ 27,236     $ 73,642     $ 54,402     $ (148 )   $ 20     $ 98,166     $ 83,648  

 

 

 

   

Six Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 366,058     $ 393,180     $ -     $ -     $ 504,442     $ 555,137     $ -     $ -     $ 870,500     $ 948,317  

Other

     3,471       3,849       45,912       56,106       98,015       82,935       (316 )     (103 )     147,082       142,787  

Total net revenues

   $ 369,529     $ 397,029     $ 45,912     $ 56,106     $ 602,457     $ 638,072     $ (316 )   $ (103 )   $ 1,017,582     $ 1,091,104  
                                                                                 

Other revenues detail

                                                                                

Retail and other

   $ 3,471     $ 3,849     $ -     $ -     $ 6,343     $ 6,230     $ -     $ -     $ 9,814     $ 10,079  

Wholesale

     -       -       18,683       20,503       91,672       76,705       -       -       110,355       97,208  

BloomNet services

     -       -       27,229       35,603       -       -       -       -       27,229       35,603  

Corporate

     -       -       -       -       -       -       202       549       202       549  

Eliminations

     -       -       -       -       -       -       (518 )     (652 )     (518 )     (652 )

Total other revenues

   $ 3,471     $ 3,849     $ 45,912     $ 56,106     $ 98,015     $ 82,935     $ (316 )   $ (103 )   $ 147,082     $ 142,787  

  

 
v3.24.4
Insider Trading Arrangements
 3 Months Ended
Dec. 29, 2024
Insider Trading Arr Line Items  
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
v3.24.4
Significant Accounting Policies (Policies)
 6 Months Ended
Dec. 29, 2024
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared by 1-800-FLOWERS.COM, Inc. and Subsidiaries (the “Company”) in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended December 29, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending June 29, 2025. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, which provides a more complete understanding of our accounting policies, financial position, operating results and other matters.

 

The Company’s quarterly results may experience seasonal fluctuations. Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, is expected to generate over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother's Day, Valentine’s Day, Easter, and Administrative Professionals Week, revenues also have historically risen during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter.

 
Use of Estimates, Policy [Policy Text Block]

Use of Estimates

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 
Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

 

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

 

A description of our principal revenue generating activities is as follows:

 

●

E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

●

Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer, at the point of sale, at which time payment is received.

●

Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

●

BloomNet Services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet Services are typically month-to-month and, as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

 

Deferred Revenues

 

Deferred revenues are recorded when the Company has received consideration (i.e. advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

 

Our total deferred revenue as of  June 30, 2024 was $25.0 million (included in “Accrued expenses” on our consolidated balance sheets), of which $9.0 million and $22.0 million was recognized as revenue during the three and six months ended December 29, 2024. The deferred revenue balance as of  December 29, 2024 was $36.1 million.

 
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]

Impairment Evaluation

 

The Company performs its annual assessment of goodwill and indefinite-lived intangible impairment during its fiscal fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist.  During the quarter ended December 31, 2023, as a result of a decline in the actual and projected revenue for the Company's PersonalizationMall tradename (indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename.  This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

 

The Company concluded that goodwill and other indefinite-lived intangible assets, excluding its PersonalizationMall tradename, did not require an impairment assessment.  See Note 6 – Goodwill and other intangibles, net for further information.

 
New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

 

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.  ASU 2024-03 requires enhanced disclosures about a business entity's expenses, includes enhanced interim disclosure requirements, and requires additional disclosure about specific types of expenses included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses.  The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted.  ASU 2024-03 allows for either a prospective or retrospective approach on adoption.  The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

 
v3.24.4
Note 2 - Net Income (Loss) Per Common Share (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands, except per share data)

  

Numerator:

                                

Net income

   $ 64,348     $ 62,907     $ 30,158     $ 31,665  
                                 

Denominator:

                                

Weighted average shares outstanding

     63,836       64,835       64,017       64,814  

Effect of dilutive stock options and unvested restricted stock awards

     470       342       484       341  
                                 

Diluted weighted-average shares outstanding

     64,306       65,177       64,501       65,155  
                                 

Net income per common share

                                

Basic

   $ 1.01     $ 0.97     $ 0.47     $ 0.49  

Diluted

   $ 1.00     $ 0.97     $ 0.47     $ 0.49  
v3.24.4
Note 4 - Inventory (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Inventory, Current [Table Text Block]
   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Finished goods

   $ 100,896     $ 94,590  

Work-in-process

     12,058       25,849  

Raw materials

     44,484       56,152  

Total inventory

   $ 157,438     $ 176,591  
v3.24.4
Note 5 - Property, Plant and Equipment, Net (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Property, Plant and Equipment [Table Text Block]
   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Land

   $ 33,827     $ 33,827  

Orchards in production and land improvements

     20,917       20,604  

Building and building improvements

     70,035       69,089  

Leasehold improvements

     31,330       31,289  

Production equipment

     135,746       131,664  

Furniture and fixtures

     9,512       9,325  

Computer and telecommunication equipment

     43,951       42,159  

Software

     205,187       176,160  

Capital projects in progress

     11,223       23,172  

Property, plant and equipment, gross

     561,728       537,289  

Accumulated depreciation and amortization

     (338,550 )     (313,500 )

Property, plant and equipment, net

   $ 223,178     $ 223,789  
v3.24.4
Note 6 - Goodwill and Intangible Assets, Net (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Goodwill [Table Text Block]
                   

Gourmet

          
   

Consumer

            

Foods &

          
   

Floral &

            

Gift

          
   

Gifts

    

BloomNet

    

Baskets

    

Total

  
   

(in thousands)

  

Balance at June 30, 2024

   $ 153,577     $ 2,960     $ -     $ 156,537  

Acquisition of Scharffen Berger

     -       -       111       111  

Balance at December 29, 2024

   $ 153,577     $ 2,960     $ 111     $ 156,648  
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block]
         

December 29, 2024

    

June 30, 2024

  
         

Gross

                    

Gross

                  
   

Amortization

    

Carrying

    

Accumulated

            

Carrying

    

Accumulated

          
   

Period

    

Amount

    

Amortization

    

Net

    

Amount

    

Amortization

    

Net

  
   

(in years)

    

(in thousands)

  

Intangible assets with determinable lives

                                                      

Investment in licenses

   14 - 16     $ 7,420     $ 6,727     $ 693     $ 7,420     $ 6,674     $ 746  

Customer lists

   3 - 10       29,647       26,986       2,661       29,647       25,932       3,715  

Other

   5 - 14       2,946       2,694       252       2,946       2,664       282  

Total intangible assets with determinable lives

           40,013       36,407       3,606       40,013       35,270       4,743  

Trademarks with indefinite lives

           111,473       -       111,473       111,473       -       111,473  

Total identifiable intangible assets

         $ 151,486     $ 36,407     $ 115,079     $ 151,486     $ 35,270     $ 116,216  
v3.24.4
Note 8 - Leases (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Lease, Cost [Table Text Block]
   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Lease costs:

                                

Operating lease costs

   $ 5,993     $ 5,651     $ 11,997     $ 11,273  

Variable lease costs

     6,829       7,568       13,356       14,082  

Short-term lease cost

     2,310       2,535       3,065       3,418  

Sublease income

     (206 )     (246 )     (436 )     (497 )

Total lease costs

   $ 14,926     $ 15,508     $ 27,982     $ 28,276  
                                 

Cash paid for amounts included in measurement of operating lease liabilities

               $ 10,376     $ 11,300  

Right-of-use assets obtained in exchange for new operating lease liabilities

               $ 5,855     $ 1,784  
   

December 29,

  
   

2024

  
       

Weighted-average remaining lease term - operating leases (in years)

     7.5  

Weighted-discount rate - operating leases

     4.5 %
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Fiscal Year:

        

Remainder of 2025

   $ 11,884  

2026

     21,875  

2027

     18,956  

2028

     17,979  

2029

     17,031  

Thereafter

     54,123  

Total future minimum lease payments

     141,848  

Less: Imputed remaining interest

     21,320  

Total operating lease liabilities

     120,528  

Less: Current portion of long-term operating lease liabilities

     18,490  

Long-term operating lease liabilities

   $ 102,038
v3.24.4
Note 9 - Accrued Expenses (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Accrued Liabilities [Table Text Block]
   

December 29, 2024

    

June 30, 2024

  
   

(in thousands)

  

Payroll and employee benefits

   $ 22,559     $ 29,954  

Deferred revenue

     36,149       25,009  

Accrued marketing expenses

     15,580       10,709  

Accrued florist payout

     12,569       9,526  

Accrued purchases

     43,469       15,338  

Other

     63,232       30,767  

Accrued Expenses

   $ 193,558     $ 121,303  
v3.24.4
Note 10 - Long-term Debt, Net (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Debt [Table Text Block]
  

December 29, 2024

  

June 30, 2024

 
  

(in thousands)

 

Revolver

 $-  $- 

Term Loans

  160,000   190,000 

Deferred financing costs

  (2,526)  (2,887)

Total debt

  157,474   187,113 

Less: current maturities of long-term debt

  -   10,000 

Long-term debt, net

 $157,474  $177,113
v3.24.4
Note 11 - Fair Value Measurements (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
   

Carrying

    

Fair Value Measurements

  
   

Value

    

Assets (Liabilities)

  
           

Level 1

    

Level 2

    

Level 3

  
   

(in thousands)

  

Assets (Liabilities) as of December 29, 2024

                                

Trading securities held in a “rabbi trust” (1)

   $ 36,182     $ 36,182     $ -     $ -  
    $ 36,182     $ 36,182     $ -     $ -  
                                 

Assets (Liabilities) as of June 30, 2024

                                

Trading securities held in a “rabbi trust”(1)

   $ 32,805     $ 32,805     $ -     $ -  
    $ 32,805     $ 32,805     $ -     $ -  
v3.24.4
Note 14 - Business Segments (Tables)
 6 Months Ended
Dec. 29, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

Three Months Ended

    

Six Months Ended

  
   

December 29,

    

December 31,

    

December 29,

    

December 31,

  
   

2024

    

2023

    

2024

    

2023

  
   

(in thousands)

  

Net Revenues:

                                

Segment Net Revenues:

                                

Consumer Floral & Gifts

   $ 234,349     $ 254,835     $ 369,529     $ 397,029  

BloomNet

     22,837       27,236       45,912       56,106  

Gourmet Foods & Gift Baskets

     518,454       539,963       602,457       638,072  

Corporate

     113       279       202       549  

Intercompany eliminations

     (261 )     (259 )     (518 )     (652 )

Total net revenues

   $ 775,492     $ 822,054     $ 1,017,582     $ 1,091,104  
                                 

Operating Income:

                                

Segment Contribution Margin:

                                

Consumer Floral & Gifts

   $ 21,587     $ 10,593     $ 26,531     $ 19,419  

BloomNet

     7,460       9,088       14,301       18,475  

Gourmet Foods & Gift Baskets

     107,277       118,153       95,024       107,125  

Segment Contribution Margin Subtotal

     136,324       137,834       135,856       145,019  

Corporate (a)

     (31,117 )     (32,432 )     (64,592 )     (64,000 )

Depreciation and amortization

     (14,130 )     (14,152 )     (27,168 )     (27,346 )

Operating income

   $ 91,077     $ 91,250     $ 44,096     $ 53,673  
Disaggregation of Revenue [Table Text Block]
   

Three Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 232,514     $ 252,845     $ -     $ -     $ 444,812     $ 485,561     $ -     $ -     $ 677,326     $ 738,406  

Other

     1,835       1,990       22,837       27,236       73,642       54,402       (148 )     20       98,166       83,648  

Total net revenues

   $ 234,349     $ 254,835     $ 22,837     $ 27,236     $ 518,454     $ 539,963     $ (148 )   $ 20     $ 775,492     $ 822,054  
                                                                                 

Other revenues detail

                                                                                

Retail and other

     1,835       1,990       -       -       4,559       4,296       -       -       6,394       6,286  

Wholesale

     -       -       8,571       8,706       69,083       50,106       -       -       77,654       58,812  

BloomNet services

     -       -       14,266       18,530       -       -       -       -       14,266       18,530  

Corporate

     -       -       -       -       -       -       113       279       113       279  

Eliminations

     -       -       -       -       -       -       (261 )     (259 )     (261 )     (259 )

Total other revenues

   $ 1,835     $ 1,990     $ 22,837     $ 27,236     $ 73,642     $ 54,402     $ (148 )   $ 20     $ 98,166     $ 83,648  
   

Six Months Ended

  
   

Consumer Floral &

                    

Gourmet Foods &

    

Corporate and

                  
   

Gifts

    

BloomNet

    

Gift Baskets

    

Eliminations

    

Consolidated

  
   

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

    

December 29, 2024

    

December 31, 2023

  
   

(in thousands)

  

Net revenues

                                                                                

E-commerce

   $ 366,058     $ 393,180     $ -     $ -     $ 504,442     $ 555,137     $ -     $ -     $ 870,500     $ 948,317  

Other

     3,471       3,849       45,912       56,106       98,015       82,935       (316 )     (103 )     147,082       142,787  

Total net revenues

   $ 369,529     $ 397,029     $ 45,912     $ 56,106     $ 602,457     $ 638,072     $ (316 )   $ (103 )   $ 1,017,582     $ 1,091,104  
                                                                                 

Other revenues detail

                                                                                

Retail and other

   $ 3,471     $ 3,849     $ -     $ -     $ 6,343     $ 6,230     $ -     $ -     $ 9,814     $ 10,079  

Wholesale

     -       -       18,683       20,503       91,672       76,705       -       -       110,355       97,208  

BloomNet services

     -       -       27,229       35,603       -       -       -       -       27,229       35,603  

Corporate

     -       -       -       -       -       -       202       549       202       549  

Eliminations

     -       -       -       -       -       -       (518 )     (652 )     (518 )     (652 )

Total other revenues

   $ 3,471     $ 3,849     $ 45,912     $ 56,106     $ 98,015     $ 82,935     $ (316 )   $ (103 )   $ 147,082     $ 142,787  
v3.24.4
Note 1 - Accounting Policies (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Jun. 30, 2024
Contract with Customer, Liability, Current $ 36,100   $ 36,100   $ 25,000
Contract with Customer, Liability, Revenue Recognized 9,000        
Goodwill and Intangible Asset Impairment $ 0 $ 19,762 $ 0 $ 19,762  
v3.24.4
Note 2 - Net Income (Loss) Per Common Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Net income $ 64,348 $ 62,907 $ 30,158 $ 31,665
Basic (in shares) 63,836 64,835 64,017 64,814
Effect of dilutive stock options and unvested restricted stock awards (in shares) 470 342 484 341
Diluted weighted-average shares outstanding (in shares) 64,306 65,177 64,501 65,155
Basic net income per common share (in dollars per share) $ 1.01 $ 0.97 $ 0.47 $ 0.49
Diluted net income per common share (in dollars per share) $ 1 $ 0.97 $ 0.47 $ 0.49
v3.24.4
Note 3 - Acquisitions (Details Textual) - USD ($)
$ in Thousands
Jul. 01, 2024
Apr. 03, 2024
Dec. 29, 2024
Jun. 30, 2024
Goodwill     $ 156,648 $ 156,537
Sharffen Berger [Member]        
Business Combination, Consideration Transferred $ 3,300      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment 2,000      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory 1,300      
Goodwill 100      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities $ 100      
Card Isle [Member]        
Business Combination, Consideration Transferred   $ 3,600    
Goodwill   3,000    
Card Isle [Member] | Artist Contracts [Member]        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   $ 600    
v3.24.4
Note 4 - Inventory - Summary of Inventory (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Finished goods $ 100,896 $ 94,590
Work-in-process 12,058 25,849
Raw materials 44,484 56,152
Total inventory $ 157,438 $ 176,591
v3.24.4
Note 5 - Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Property, plant, and equipment, gross $ 561,728 $ 537,289
Accumulated depreciation and amortization (338,550) (313,500)
Property, plant and equipment, net 223,178 223,789
Land [Member]    
Property, plant, and equipment, gross 33,827 33,827
Orchards in Production and Land Improvements [Member]    
Property, plant, and equipment, gross 20,917 20,604
Building and Building Improvements [Member]    
Property, plant, and equipment, gross 70,035 69,089
Leasehold Improvements [Member]    
Property, plant, and equipment, gross 31,330 31,289
Equipment [Member]    
Property, plant, and equipment, gross 135,746 131,664
Furniture and Fixtures [Member]    
Property, plant, and equipment, gross 9,512 9,325
Computer and Telecommunication Equipment [Member]    
Property, plant, and equipment, gross 43,951 42,159
Software and Software Development Costs [Member]    
Property, plant, and equipment, gross 205,187 176,160
Capital Projects in Progress [Member]    
Property, plant, and equipment, gross $ 11,223 $ 23,172
v3.24.4
Note 6 - Goodwill and Intangible Assets, Net (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year $ 900   $ 900  
Finite-Lived Intangible Asset, Expected Amortization, Year One 1,400   1,400  
Finite-Lived Intangible Asset, Expected Amortization, Year Two 600   600  
Finite-Lived Intangible Asset, Expected Amortization, Year Three 300   300  
Finite-Lived Intangible Asset, Expected Amortization, Year Four 200   200  
Finite-Lived Intangible Asset, Expected Amortization, after Year Four 100   100  
Goodwill and Intangible Asset Impairment $ 0 $ 19,762 $ 0 $ 19,762
v3.24.4
Note 6 - Goodwill and Intangible Assets, Net - Goodwill by Segment (Details)
$ in Thousands
 6 Months Ended
Dec. 29, 2024
USD ($)
Balance $ 156,537
Acquisition of Scharffen Berger 111
Balance 156,648
Consumer Floral [Member]  
Balance 153,577
Acquisition of Scharffen Berger 0
Balance 153,577
BloomNet Wire Service [Member]  
Balance 2,960
Acquisition of Scharffen Berger 0
Balance 2,960
Gourmet Foods and Gift Baskets [Member]  
Balance 0
Acquisition of Scharffen Berger 111
Balance $ 111
v3.24.4
Note 6 - Goodwill and Intangible Assets, Net - Other Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Intangible assets with determinable lives, gross $ 40,013 $ 40,013
Accumulated amortization 36,407 35,270
Intangible assets with determinable lives, net 3,606 4,743
Trademarks with indefinite lives, gross 111,473 111,473
Total identifiable intangible assets, gross 151,486 151,486
Total identifiable intangible assets, net 115,079 116,216
Licensing Agreements [Member]    
Intangible assets with determinable lives, gross 7,420 7,420
Accumulated amortization 6,727 6,674
Intangible assets with determinable lives, net $ 693 746
Licensing Agreements [Member] | Minimum [Member]    
Finite-lived intangible asset, useful life (Year) 14 years  
Licensing Agreements [Member] | Maximum [Member]    
Finite-lived intangible asset, useful life (Year) 16 years  
Customer Lists [Member]    
Intangible assets with determinable lives, gross $ 29,647 29,647
Accumulated amortization 26,986 25,932
Intangible assets with determinable lives, net $ 2,661 3,715
Customer Lists [Member] | Minimum [Member]    
Finite-lived intangible asset, useful life (Year) 3 years  
Customer Lists [Member] | Maximum [Member]    
Finite-lived intangible asset, useful life (Year) 10 years  
Other Intangible Assets [Member]    
Intangible assets with determinable lives, gross $ 2,946 2,946
Accumulated amortization 2,694 2,664
Intangible assets with determinable lives, net $ 252 $ 282
Other Intangible Assets [Member] | Minimum [Member]    
Finite-lived intangible asset, useful life (Year) 5 years  
Other Intangible Assets [Member] | Maximum [Member]    
Finite-lived intangible asset, useful life (Year) 14 years  
v3.24.4
Note 7 - Investments (Details Textual) - USD ($)
$ in Millions
Dec. 29, 2024
Jun. 30, 2024
Equity Securities without Readily Determinable Fair Value, Amount $ 2.4 $ 2.4
v3.24.4
Note 8 - Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Operating lease costs $ 5,993 $ 5,651 $ 11,997 $ 11,273
Variable lease costs 6,829 7,568 13,356 14,082
Short-term lease cost 2,310 2,535 3,065 3,418
Sublease income (206) (246) (436) (497)
Total lease costs 14,926 15,508 27,982 28,276
Cash paid for amounts included in measurement of operating lease liabilities 10,376 11,300
Right-of-use assets obtained in exchange for new operating lease liabilities $ 5,855 $ 1,784
Weighted-average remaining lease term - operating leases (in years) (Year) 7 years 6 months   7 years 6 months  
Weighted-discount rate - operating leases 4.50%   4.50%  
v3.24.4
Note 8 - Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Remainder of 2025 $ 11,884  
2026 21,875  
2027 18,956  
2028 17,979  
2029 17,031  
Thereafter 54,123  
Total future minimum lease payments 141,848  
Less: Imputed remaining interest 21,320  
Total operating lease liabilities 120,528  
Less: Current portion of long-term operating lease liabilities 18,490 $ 16,511
Long-term operating lease liabilities $ 102,038 $ 105,866
v3.24.4
Note 9 - Accrued Expenses - Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Payroll and employee benefits $ 22,559 $ 29,954
Deferred revenue 36,149 25,009
Accrued marketing expenses 15,580 10,709
Accrued florist payout 12,569 9,526
Accrued purchases 43,469 15,338
Other 63,232 30,767
Accrued Expenses $ 193,558 $ 121,303
v3.24.4
Note 10 - Long-term Debt, Net (Details Textual) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 7 Months Ended
Jun. 27, 2023
Dec. 29, 2024
Dec. 29, 2024
Dec. 31, 2023
Aug. 01, 2023
Sep. 29, 2023
Repayments of Debt     $ 140,000 $ 87,000    
The 2020 Credit Agreement [Member] | Revolving Credit Facility [Member]            
Line of Credit Facility, Maximum Borrowing Capacity $ 225,000          
Line of Credit Facility, Maximum Borrowing Capacity During Seasonal Reduction         $ 125,000  
The 2020 Credit Agreement [Member] | Revolving Credit Facility [Member] | Base Rate [Member]            
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease) 0.25%          
The 2020 Credit Agreement [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member]            
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease) 0.25%          
The New Term Loan [Member] | The 2020 Credit Agreement [Member]            
Debt Instrument, Face Amount $ 200,000          
Long-Term Debt, Maturity, First 8 Payments, Quarterly           $ 2,500
Long-Term Debt, Maturity, Subsequent 11 Payments, Quarterly           5,000
Long-Term Debt, Maturity, Due on Maturity Date           $ 125,000
Repayments of Debt   $ 25,000        
Long-Term Debt, Maturity, Remainder of Fiscal Year   0 0      
Long-Term Debt, Maturity, Year One   0 0      
Long-Term Debt, Maturity, Year Two   20,000 20,000      
Long-Term Debt, Maturity, Year Three   $ 140,000 $ 140,000      
Line of Credit and Term Loan [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]            
Debt Instrument, Base Rate, Basis Spread on Variable Rate 0.50%          
Line of Credit and Term Loan [Member] | Secured Overnight Financing Rate (SOFR) [Member]            
Debt Instrument, Base Rate, Basis Spread on Variable Rate 0.10%          
Debt Instrument, Adjusted Rate 1.00%          
v3.24.4
Note 10 - Long-term Debt, Net - Summary of Current and Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Deferred financing costs $ (2,526) $ (2,887)
Debt instrument, carrying amount 157,474 187,113
Less: current maturities of long-term debt 0 10,000
Long-term debt, net 157,474 177,113
Line of Credit [Member]    
Revolver 0 0
Term Loan [Member]    
Term Loans $ 160,000 $ 190,000
v3.24.4
Note 11 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 29, 2024
Jun. 30, 2024
Trading securities held in a “rabbi trust” [1] $ 36,182 $ 32,805
Fair Value, Net Asset (Liability) 36,182 32,805
Fair Value, Inputs, Level 1 [Member]    
Trading securities held in a “rabbi trust” [1] 36,182 32,805
Fair Value, Net Asset (Liability) 36,182 32,805
Fair Value, Inputs, Level 2 [Member]    
Trading securities held in a “rabbi trust” [1] 0 0
Fair Value, Net Asset (Liability) 0 0
Fair Value, Inputs, Level 3 [Member]    
Trading securities held in a “rabbi trust” [1] 0 0
Fair Value, Net Asset (Liability) $ 0 $ 0
[1] The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in a rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets.
v3.24.4
Note 12 - Income Taxes (Details Textual) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Jun. 30, 2024
Effective Income Tax Rate Reconciliation, Percent 26.70% 29.60% 23.20% 33.80%  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00% 21.00% 21.00% 21.00%  
Deferred Tax Assets, Valuation Allowance $ 6.2   $ 6.2   $ 4.9
Unrecognized Tax Benefits 3.4   3.4    
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit $ 0.4   $ 0.4    
Domestic Tax Jurisdiction [Member]          
Open Tax Year     2023 2022 2021    
State and Local Jurisdiction [Member]          
Open Tax Year     2025 2024 2023 2022 2021 2020    
Foreign Tax Jurisdiction [Member]          
Open Tax Year     2025 2024 2023 2022 2021 2020 2019 2018    
v3.24.4
Note 14 - Business Segments (Details Textual)
 6 Months Ended
Dec. 29, 2024
Number of Reportable Segments 3
v3.24.4
Note 14 - Business Segments - Segment Performance (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Net revenues $ 775,492 $ 822,054 $ 1,017,582 $ 1,091,104
Depreciation and amortization (14,130) (14,152) (27,168) (27,346)
Operating income 91,077 91,250 44,096 53,673
Operating Segments [Member]        
Contribution margin 136,324 137,834 135,856 145,019
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]        
Net revenues 113 279 202 549
Corporate (a) [1] (31,117) (32,432) (64,592) (64,000)
Intersegment Eliminations [Member]        
Net revenues (261) (259) (518) (652)
Consumer Floral and Gifts [Member] | Operating Segments [Member]        
Net revenues 234,349 254,835 369,529 397,029
BloomNet [Member] | Operating Segments [Member]        
Net revenues 22,837 27,236 45,912 56,106
Gourmet Foods and Gift Baskets [Member] | Operating Segments [Member]        
Net revenues 518,454 539,963 602,457 638,072
Contribution margin 107,277 118,153 95,024 107,125
Consumer Floral [Member] | Operating Segments [Member]        
Contribution margin 21,587 10,593 26,531 19,419
BloomNet Wire Service [Member] | Operating Segments [Member]        
Contribution margin $ 7,460 $ 9,088 $ 14,301 $ 18,475
[1] (a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-based compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.
v3.24.4
Note 14 - Business Segments - Disaggregation of Revenue From Contracts With Customers (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Dec. 29, 2024
Dec. 31, 2023
Dec. 29, 2024
Dec. 31, 2023
Net revenues $ 775,492 $ 822,054 $ 1,017,582 $ 1,091,104
E-commerce [Member]        
Net revenues 677,326 738,406 870,500 948,317
Product and Service, Other [Member]        
Net revenues 98,166 83,648 147,082 142,787
Product and Service, Other [Member] | Retail and Other [Member]        
Net revenues 6,394 6,286 9,814 10,079
Product and Service, Other [Member] | Wholesale [Member]        
Net revenues 77,654 58,812 110,355 97,208
Product and Service, Other [Member] | Bloomnet Services [Member]        
Net revenues 14,266 18,530 27,229 35,603
Operating Segments [Member] | Consumer Floral and Gifts [Member]        
Net revenues 234,349 254,835 369,529 397,029
Operating Segments [Member] | BloomNet [Member]        
Net revenues 22,837 27,236 45,912 56,106
Operating Segments [Member] | Gourmet Foods and Gift Baskets [Member]        
Net revenues 518,454 539,963 602,457 638,072
Operating Segments [Member] | E-commerce [Member] | Consumer Floral and Gifts [Member]        
Net revenues 232,514 252,845 366,058 393,180
Operating Segments [Member] | E-commerce [Member] | BloomNet [Member]        
Net revenues 0 0 0 0
Operating Segments [Member] | E-commerce [Member] | Gourmet Foods and Gift Baskets [Member]        
Net revenues 444,812 485,561 504,442 555,137
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member]        
Net revenues 1,835 1,990 3,471 3,849
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Retail and Other [Member]        
Net revenues 1,835 1,990 3,471 3,849
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Wholesale [Member]        
Net revenues 0 0 0 0
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Bloomnet Services [Member]        
Net revenues 0 0 0 0
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member]        
Net revenues 22,837 27,236 45,912 56,106
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Retail and Other [Member]        
Net revenues 0 0 0 0
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Wholesale [Member]        
Net revenues 8,571 8,706 18,683 20,503
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Bloomnet Services [Member]        
Net revenues 14,266 18,530 27,229 35,603
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member]        
Net revenues 73,642 54,402 98,015 82,935
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Retail and Other [Member]        
Net revenues 4,559 4,296 6,343 6,230
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Wholesale [Member]        
Net revenues 69,083 50,106 91,672 76,705
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Bloomnet Services [Member]        
Net revenues 0 0 0 0
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]        
Net revenues (148) 20 (316) (103)
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | E-commerce [Member]        
Net revenues 0 0 0 0
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Product and Service, Other [Member]        
Net revenues (148) 20 (316) (103)
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Retail and Other [Member]        
Net revenues 0 0 0 0
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Wholesale [Member]        
Net revenues 0 0 0 0
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Bloomnet Services [Member]        
Net revenues 0 0 0 0
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]        
Net revenues 113 279 202 549
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member] | Product and Service, Other [Member]        
Net revenues 113 279 202 549
Intersegment Eliminations [Member]        
Net revenues (261) (259) (518) (652)
Intersegment Eliminations [Member] | Product and Service, Other [Member]        
Net revenues $ (261) $ (259) $ (518) $ (652)
1 800 Flowers Com (NASDAQ:FLWS)
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1 800 Flowers Com (NASDAQ:FLWS)
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