E-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 6.7% year on year to $336.6 million. Its non-GAAP loss of $0.69 per share was 34.4% below analysts’ consensus estimates.

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“I’m excited to have joined 1-800-FLOWERS.COM, Inc. at such a pivotal moment. This is an iconic brand with products people love, but we haven’t fully lived up to our potential in recent years. Customer expectations are shifting, technology is moving fast, and competition is evolving. That creates real opportunity. We’re making the company leaner and more agile, putting the customer at the center of everything we do, and using data to make smarter decisions. We’re sharpening how we attract and retain customers, broadening our reach beyond our e-commerce sites, and modernizing the customer experience. At the same time, we’re driving operational discipline, efficiency, and accountability. These changes will position us to get back to growth, deliver a better experience for our customers, and create long-term value for shareholders,” said Adolfo Villagomez, Chief Executive Officer.

Company Overview

Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, 1-800-FLOWERS grew its sales at a weak 2.5% compounded annual growth rate. This fell short of our benchmarks and is a tough starting point for our analysis.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. 1-800-FLOWERS’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 8.6% annually.

This quarter, 1-800-FLOWERS’s revenue fell by 6.7% year on year to $336.6 million but beat Wall Street’s estimates by 2%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Operating Margin

1-800-FLOWERS’s operating margin has been trending down over the last 12 months and averaged negative 1.6% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they’re spending loads of money to stay relevant, an unsustainable practice.

This quarter, 1-800-FLOWERS generated a negative 16.5% operating margin. The company's consistent lack of profits raise a flag.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for 1-800-FLOWERS, its EPS declined by 24.2% annually over the last five years while its revenue grew by 2.5%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.

In Q2, 1-800-FLOWERS reported adjusted EPS of negative $0.69, down from negative $0.34 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects 1-800-FLOWERS to improve its earnings losses. Analysts forecast its full-year EPS of negative $0.93 will advance to negative $0.55.

Key Takeaways from 1-800-FLOWERS’s Q2 Results

It was encouraging to see 1-800-FLOWERS beat analysts’ revenue expectations this quarter. On the other hand, its EPS missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $5.33 immediately after reporting.

1-800-FLOWERS’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.