The following is a summary of the 1-800-FLOWERS.COM, Inc. (FLWS) Q2 2024 Earnings Call Transcript:
Financial Performance:
1-800-FLOWERS.COM reported a Q2 revenue decline of 8.4%, with e-commerce revenue down 6.6%.
Adjusted EBITDA for the quarter was $130.1 million.
The company saw a significant 230 basis points improvement in the gross profit margin due to the 'Work Smarter' efficiency initiatives and improving macroeconomic factors, bringing gross margin to 43.3%.
Despite a decline in total revenue and e-commerce revenue, gross profit margin improved significantly.
A non-cash impairment charge for the Personalization Mall business resulted in a net income of $62.9 million or $0.97 per share. However, the adjusted net income was $82.7 million or $1.27 per share.
The company's cash and investment position stood at $312 million at the end of Q2, with no borrowings under the revolving credit facility.
Business Progress:
Continued focus on relationship innovation initiatives and efficient operating measures are bringing steady improvements in sales performance.
The company is actively reducing its import dependence by sourcing commodity items domestically, enhancing the Passport program and working on potential service-enhancing acquisitions.
New product introductions include the Flowers and Fields collection and the Harry & David charcuterie gift with a personalized maple cutting board; a new trio bundle combining products from three brands is also planned for Valentine's Day.
The marketplace, Gifts & More, continues to expand its range with offerings such as jewelry, spa, gardening, and home decor items.
A partnership with First Step Staffing to employ about 350 individuals at the Atlanta distribution facility showcases the company's commitment toward social responsibility.
Lowered revenue guidance for fiscal 2024, but maintained adjusted EBITDA guidance expecting to offset a softer revenue outlook with gross margin improvement and expense optimization.
Continued efforts for automation and cost reduction are expected to continue benefiting the company's gross profit margin rate.
More details: 1-800-Flowers.com IR
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