1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) posted a sharp earnings beat for its fiscal second quarter, helped by aggressive cost controls that lifted profitability despite a year-on-year drop in revenue.
Shares in the floral and gifting group surged 9.41% in pre-market trading on Thursday following the release.
Adjusted earnings reached $1.20 per diluted share for the quarter ended December 28, 2025, well ahead of the $0.86 analysts had been expecting. Revenue totaled $702.2 million, marginally above the consensus estimate of $700.58 million, but down 9.5% from $775.5 million a year earlier.
Management said the decline in sales reflects a deliberate strategy shift aimed at improving marketing efficiency and long-term profitability. Even with lower revenue, the company reduced operating expenses by $23.4 million compared with the prior-year period, driven mainly by lower marketing spend and labor costs.
“While the topline impact of our initiatives will take time as we address structural challenges within the business, we made solid progress in the second quarter on our cost-optimization and organizational-streamlining efforts,” said Adolfo Villagomez, Chief Executive Officer. “These actions are strengthening our operating foundation and better positioning the Company to achieve sustainable, profitable growth.”
By segment, Gourmet Foods & Gift Baskets, the company’s largest division, reported revenue of $499.0 million, down 3.8% year on year. Consumer Floral & Gifts saw a sharper decline, with revenue falling 22.7% to $181.2 million, while BloomNet revenue slipped 3.1% to $22.1 million.
Looking ahead, 1-800-FLOWERS.COM expects revenue in the second half of fiscal 2026 to decline in the low double-digit range, with adjusted EBITDA slightly lower than last year. On a normalized basis, however, adjusted EBITDA is expected to edge higher year on year, excluding around $12 million of anticipated incentive compensation and consulting costs.
The company said it remains focused on its core strategic priorities, including further cost reductions, building a more customer-centric organization, expanding beyond e-commerce into additional sales channels, and strengthening its leadership and workforce.