By Robb M. Stewart

1-800-Flowers.com's shares slumped ahead of the bell after the floral and gift service provider flagged a decline in revenue for the fiscal year after being squeezed by soft demand and a pullback in corporate gifting orders in the latest quarter.

In premarket trading, the shares were down 15%. The stock has risen just over 8% in the new year, but by Wednesday it was still down 17% over the past 12 months.

The company forecast revenue for the fiscal year would fall in the mid-single digits on a percentage basis, where it previously was looking for sales to be flat to down in the low-single digits.

1-800-Flowers continues to expect revenue trends to improve as the year progresses, as it benefits from steps to expand its offerings, broaden price points and bolster the user experience.

Revenue in the second quarter of the year fell 5.7% on a year earlier to $775.5 million, below the $801.6 million mean estimate of analysts polled by FactSet.

Still, net income rose to $64.3 million, or $1 a share, for the three months to Dec. 29, from $62.9 million, or 97 cents, the year before.

On an adjusted basis, per-share earnings came in at $1.08, missing the $1.20 expected.

Chairman and Chief Executive Jim McCann said the consumer environment for the quarter was softer than anticipated and highly promotional, adding that there was a pullback in corporate orders, trends that were exacerbated by issues implementing the company's our new Harry & David order-management system.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 30, 2025 08:13 ET (13:13 GMT)

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