Generates Revenues of $775.5 million and Net Income of $64.3 million

Reports Adjusted EBITDA⁽¹⁾ of $116.3 million

Updates Fiscal Year 2025 Outlook

(1) Refer to "Definitions of Non-GAAP Financial Measures" and the tables attached at the end of this press release for reconciliation of non-GAAP results to applicable GAAP results.

JERICHO, N.Y., January 30, 2025--(BUSINESS WIRE)--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships, today reported results for its Fiscal 2025 second quarter ended December 29, 2024.

"Our second quarter revenue declined 5.7%, showing year-over-year improvement, but not at the pace that we had been anticipating," said Jim McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM, Inc. "Our business experienced a softer than anticipated and highly promotional consumer environment, along with a pullback in corporate gifting orders, which were slightly offset by an improvement in our wholesale business. These trends were further exacerbated by issues with our new Harry & David order management system implementation."

Mr. McCann continued, "Shifting patterns in consumer engagement have affected our performance. We are implementing actions to accelerate our Work Smarter efficiency initiatives that will in turn fund investments in our growth-oriented Relationship Innovation™ initiatives and marketing and sales strategies. As we focus on expanding our customer base, we see significant opportunities to leverage new technology to enhance engagement and build deeper relationships with our customers. We are confident that our dedicated team and innovative solutions will help us navigate these headwinds and emerge stronger."

Fiscal 2025 Second Quarter Highlights

• Total consolidated revenues decreased 5.7% to $775.5 million, as compared with the prior year period.

• Gross profit margin of 43.3% was flat with the prior year period.

• Operating expenses declined $19.9 million to $244.5 million, as compared with the prior year period. Excluding the impact of non-recurring charges in the current period associated with new systems implementation costs, impairment charges in the prior year period, as well as the impact of the Company’s non-qualified deferred compensation plan in both periods, operating expenses declined by $2.9 million to $239.1 million, as compared with the prior year period.

• Net income for the quarter was $64.3 million, or $1.00 per diluted share, as compared with net income of $62.9 million, or $0.97 per diluted share in the prior year period.

• Adjusted Net Income¹ was $69.2 million, or $1.08 per diluted share, compared with an Adjusted Net Income¹ of $82.7 million, or $1.27 per diluted share, in the prior year period.

• Adjusted EBITDA¹ for the quarter was $116.3 million, as compared with Adjusted EBITDA¹ of $130.1 million in the prior year period.

Segment Results

The Company provides Fiscal 2025 second quarter financial results for its Gourmet Foods and Gift Baskets, Consumer Floral and Gifts, and BloomNet^® segments in the tables attached to this release and as follows:

• Gourmet Foods and Gift Baskets: Revenues for the quarter declined 4.0% to $518.5 million as compared with the prior year period. The Company estimates that the issues associated with the implementation of its new order management system resulted in lost revenue of approximately $20 million. Gross profit margin increased 30 basis points to 43.5%, benefiting from the Company’s inventory and labor optimization efforts that offset the incremental costs associated with the order management system issues. Excluding the impact of the systems implementation costs, adjusted segment contribution margin¹ was $111.4 million, as compared with segment contribution margin¹ of $118.2 million in the prior year period.

• Consumer Floral & Gifts: Revenues for the quarter declined 8.0% to $234.3 million as compared with the prior year period. Gross profit margin decreased 90 basis points to 41.9%, primarily due to deleveraging on the sales decline and a promotional consumer environment. Segment contribution margin¹ was $21.6 million, compared with adjusted segment contribution margin¹ of $30.4 million in the prior year period, excluding the intangible impairment.

• BloomNet: Revenues for the quarter declined 16.2% to $22.8 million as compared with the prior year period. Revenue and gross margin were impacted by the lower volume of lower margin orders processed by BloomNet. Gross profit margin increased 330 basis points to 50.9% due to lower florist rebates. Segment contribution margin¹ was $7.5 million, compared with $9.1 million in the prior year period.

Company Guidance

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

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 EBITDA¹ to be in a range of $65 million to $75 million; and
• Free Cash Flow¹ to be in a range of $25 million to $35 million.

Credit Agreement Amendment

The Company today announced that it has amended its credit agreement in order to provide more clarity and flexibility to the Company going forward.

Key changes effected by the amendment include revising the definition of Consolidated EBITDA, clarifying the application of optional term loan prepayments toward scheduled principal payments, and revising the definition of Consolidated Fixed Charges. Additional information can be found in the Company’s Form 8-K that was filed with the SEC this morning.

Conference Call

The Company will conduct a conference call to discuss the above details and attached financial results today, January 30, 2025, at 8:00 a.m. (ET). The conference call will be webcast from the Investors section of the Company’s website at www.1800flowersinc.com. A recording of the call will be posted on the Investors section of the Company’s website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) today through February 6, 2025, at: (US) 1-877-344-7529; (Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #: 4981439.

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. Non-GAAP financial measures referred to in this document are either labeled as "non-GAAP" or designated as such with a "1". See below for definitions and the reasons why we use these non-GAAP financial measures. Where applicable, see the Selected Financial Information below for reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures. 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.

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") Investment appreciation/depreciation, and for certain items affecting period-to-period comparability. See Selected Financial Information for details on how EBITDA and Adjusted EBITDA were calculated for each period presented. 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.

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 Segment Contribution Margin adjusted for certain items affecting period-to-period comparability. See Selected Financial Information for details on how Segment Contribution Margin and Adjusted Segment Contribution Margin were calculated for each period presented. 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 these measures by looking at other GAAP measures, such as Operating Income and Net Income.

Adjusted Net Income (Loss) and Adjusted or Comparable Net Income (Loss) 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. See Selected Financial Information below for details on how Adjusted Net Income (Loss) Per Common Share and Adjusted or Comparable Net Income (Loss) Per Common Share were calculated for each period presented. 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.

Free Cash Flow:

We define Free Cash Flow as net cash provided by 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.

About 1-800-FLOWERS.COM, Inc.

1-800-FLOWERS.COM, Inc. 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 an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, CardIsle®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Simply Chocolate® and Scharffen Berger®. 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, 1-800-FLOWERS.COM, Inc. 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 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 livestreaming and on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service. 1-800-FLOWERS.COM, Inc. was recognized among America’s Most Trustworthy Companies by Newsweek for 2024. 1-800-FLOWERS.COM, Inc. was also recognized as one of America’s Most Admired Workplaces for 2025 by Newsweek and was named to the Fortune 1000 list in 2022. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com.

FLWS–COMP
FLWS-FN

Special Note Regarding Forward Looking Statements:

This press release contains 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 using statements that include words such as "estimate," "expects," "project," "believe," "anticipate," "intend," "plan," "foresee," "forecast," "likely," "should," "will," "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, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the Company’s ability to achieve its guidance for the full Fiscal year; the Company’s ability to leverage its operating platform and reduce its operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to successfully execute its strategic initiatives; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; its ability to reduce promotional activities and achieve more efficient marketing programs; and general consumer sentiment and industry and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, refer to the Company’s SEC filings, including the Company’s Annual Reports on Form 10-K and its Quarterly Reports on Form 10-Q.

Note: The following tables are an integral part of this press release without which the information presented in this press release should be considered incomplete.

1-800-FLOWERS.COM, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands)
		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
Total stockholders’ equity			495,107				466,342
Total liabilities and stockholders’ equity		$	1,137,770			$	1,032,648

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Operations (in thousands, except for per share data) (unaudited)
		Three Months Ended								Six Months Ended
		December 29, 2024				December 31, 2023				December 29, 2024				December 31, 2023
Net revenues:
E-Commerce		$	677,326			$	738,406			$	870,500			$	948,317
Other			98,166				83,648				147,082				142,787
Total net revenues			775,492				822,054				1,017,582				1,091,104
Cost of revenues			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		$	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

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information Consolidated Statements of Cash Flows (in thousands) (unaudited)
			Six Months Ended
			December 29, 2024				December 31, 2023
Operating activities:
Net income		$	30,158			$	31,665
Adjustments to reconcile net income to net cash provided by operating activities:
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

...

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)
	Three Months Ended
	December 29, 2024		System Implementation costs		As Adjusted (non-GAAP) December 29, 2024			December 31, 2023		Intangible Impairment		As Adjusted (non-GAAP) December 31, 2023		% Change
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)	$	109,971	$	6,307	$	116,278		$	110,315	$	19,762	$	130,077	-10.6%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information – Category Information (dollars in thousands) (unaudited)
	Six Months Ended
	December 29, 2024		System Implementation Cost		As Adjusted (non-GAAP) December 29, 2024			December 31, 2023		Intangible Impairment		As Adjusted (non-GAAP) December 31, 2023		% Change
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)	$	80,245	$	8,087	$	88,332		$	87,792	$	19,762	$	107,554	-17.9%

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)
Reconciliation of net income to adjusted net income (non-GAAP):	Three Months Ended						Six Months Ended
	December 29, 2024			December 31, 2023			December 29, 2024			December 31, 2023
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

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)
Reconciliation of net income to adjusted EBITDA (non-GAAP):	Three Months Ended						Six Months Ended
	December 29, 2024			December 31, 2023			December 29, 2024			December 31, 2023
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
(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, 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.

1-800-FLOWERS.COM, Inc. and Subsidiaries Selected Financial Information (in thousands) (unaudited)
Reconciliation of net cash provided by operating activities to free cash flow (non-GAAP):	Six Months Ended
	December 29, 2024			December 31, 2023
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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Contacts

Investor Contact:
Andy Milevoj
amilevoj@1800flowers.com

Media Contact:
Cherie Gallarello
cgallarello@1800flowers.com