FLWS - Earnings call 2 2024 | 1-800-FLOWERS.COM, Inc.

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Operator

Good morning, and welcome to the 1-800-FLOWERS.COM Fiscal 2024 Second Quarter and Year-End Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Andy Milevoj, Senior Vice President, Investor Relations. Please go ahead.

Andy Milevoj

Good morning, and welcome to our fiscal 2024 second quarter earnings call.

Jim Shea, and our are President; Tom today Bill and CFO. us McCann, CEO; Chairman Hartnett, Joining

Before we call begin, our some the of I'd harbor press like to statements safe documents. make remind release we and on contained today's disclaimer are public by the covered in you that

in including forward-looking risks to our we assumptions contained filings based projections statements the on those expectations of with press or and and and release and These other with During this statements events. are call, statements company forward-looking are statements made Securities public The Commission. discussed disclaims and to subject call. during that that the uncertainties update Exchange may be will make any this predictions, about future obligation current any

financial GAAP discuss measures found non-GAAP can these measures were will Reconciliations with comparable not financial in accordance tables we our certain directly prepared measures GAAP. most that earnings in Additionally, release. of of the be to the supplemental

And to now Jim. call turn I'll over the

James McCann

who'll good everyone. then I'll of a Thank morning, joining This brief us. a to with update. begin second Andy, morning, over Tom, it quarter business performance our Thanks, turn you and for and provide overview

open review Bill, financial with conclude will We for and the then your from we'll call questions.

second operating to decline. expenses quarter, trends to recovery our and improve, our into we Heading sales margin expected continue our gross to profit

and gross well This we rate happening fifth in low at of year-over-year quarter percent margin gross Most our to mean as turned to nicely, our Our further, and with out performance XXs the our environment. profit softer-than-anticipated pace expectations was optimization returning profit are be consumer path highlight margin gross will notably, annual margin recovery was historical consecutive expansion, our recovery a efforts range. essentially line good our margin of is offset rate. to in expense Bill as and on our helped expanded what our margin

initiatives centered benefiting efficiently. of the reversion operating and are that from to is profit gross Smarter combination the a mean more costs on commodity Work certain margin Our of our

regularly buoyed our As and line our seeing improvements be are our we Tom will by through margins. highlight gross opportunities innovation and further, are will the relationship top further initiatives, we in to operating this only evaluating performance improve

ask organization take business provide that I opportunity Before Tom the this I proud update, with want to very to are a highlight season. did partner new we holiday to to this

with is know, partner Smile philanthropic to purpose and and create As generates force our Farms we Smile season, disabilities. Their aligns their mission skills whose that life meaningful with partner you closely many for pride enhances opportunities organization whose proud of to of mission is This signature are work people Farms. is another work holiday socialization. with and

nonprofit to holiday called a partnered past approximately Atlanta individuals this our in with employ First we Staffing Step season, XXX During the distribution facility.

is who but to work, provides additional provide that to and success. improve Staffing homeless them. with and organization these providing and reenter lives. only employment partner position glad are does services, such opportunities Step they an First employment and workforce support want to to their not opportunities, provide the also They resources individuals terrific are that for able work, be from a as we transportation to to They organization individuals great

turn Tom I'll update. to Now call the business the for over

Thomas Hartnett

as update our user everyone. enhancements. good relationship and offerings, business enhanced as as as morning, interface merchandising well our our new or Thanks, innovation developments, provide on Today, on I'll product which efforts an Jim, well an encompasses performance, update

improvement gross a macroeconomic basis factors, contributed generated XXX efficiency second million with profit point quarter, our in the During our we in adjusted initiatives, combined EBITDA Smarter $XXX.X as Work to improving margin.

low-income improve trends to tier especially softer our consumer amongst encountered revenue a environment, where we quarter-over-quarter continued customers. Our

the to continue value. increased by a As bundled customers great pressures, Conversely, continue to cohort lower upper-income X% towards purchases this overall approximately income customer see AOV gift to continue gravitate and a our that we macroeconomic higher-priced customers products represent our reduce most. provide as be portion impacted greater continue most they the population, our to of and

During fiscal we on adequate our in the didn't have with in challenging marketing been first prudent half spend see our of an a we environment consumer return year, which investment.

points and mentioned, efforts, customer and of our under innovation our portfolio. opportunities pricing have actively our evaluating appropriate our relationship elasticity offerings, ensure the managing bundling As are segments, we product we price regularly are for we to pricing of Jim each

at options thoughtful and on gifting pricing journey, of never has focus been the greater. the value to appropriate having ends luxury, the Our all customer providing from spectrum,

match gifts During our provide Flowers great and sentiments lower an $XX.XX. Fields emphasize that ranges in price such value be attract are more introduced sensitive. the providing offerings, we This customers price and lower second new of bouquets at includes as custom-crafted that who and our that price beginning array may value features points at X-XXX-Flowers to quarter, collection

customers, to recipients. And offerings to conveniently This we to us also and lean them the same points bundles to ship advantage are across give to introduce provide price competitive new products our products multiple in gift wonderful wow and our continue in value looking we different family trade to allow to brand is bundling to for customers customers the brands websites. marketing recipient Bundles their These these us who a by see great feature package. and into gifts. a for up and from customers way our our great continue bundles of these brands

there's our one test, launched elevated and expectations. our give food it others exceeded how and again, brands can compared such opportunity an launch to once market. our demonstrates gift bundle David complement here of a cutting believe & charcuterie We our leveraged we another a the customers experience was Personalization Harry as with maple lot in a gifts personalized and, board. as This a with program As item, personalized an to of set example, a Mall

David Super have favorable Valentine's than trio combines wine we placement excited Berries and should year, our past that few gift be Bowl, can create which X-XXX-Flowers to overnight. us. as look about recipient a sure We're Shari's & this features to it's Day, and trio This gifts a great X day extraordinary They roses, in a an better and gift. bundle for box and our had slightly last-minute new bundle be of we the brand idea. experience from midweek we single our that Harry year ago a magnificent to a days is As them the ahead a ships delivered provide

offer from gifts gifting of we of to gardening customers features is broader core can which jewelry, we an of a assortment express local spa, Through ours, and sellers, variety amazing customers a our a Gift & name items More marketplace, across number sentiment. with decor leverage including curated home a customers have strength to family of every brands help Providing can and we options of that our and few. products categories

it turn financial to I'll provide to over review. the Bill Now

William Shea

optimization automation and that more and Even efforts. and softer-than-expected out quarter a to also line includes our through gross labor top second XX the good and we see initiatives our to continue turned of use in inventory what on to everyone. efficiently This be offset performance. technology enabled us staying logistics, Work focused morning, Thanks, Tom profit Smarter operating significant our steadfast are highlighted, Tom, margin, improvements in

occur X.X%, into environment declining improve our discretionary pressured, rate. few the at and sales but to declining the our as a but second X.X% had to the improvement improve with to trends the Going pace for quarters. revenue consumer e-commerce compared expected anticipated spending past faster we Quarter-over-quarter remain quarter, revenue did to total we of

Our offset the better gross margin top helped of line. is The improvement improvement we than softer anticipated. pace

is top improvement improved of a represents XX.X%, the and points quarter ago. of this our year-over-year margin fifth gross on year point XX quarter basis Second improvement. consecutive This to XXX basis

gross our we and expect path As year, margin rate, returning to of end profit historical this approximately Jim at said, be to we XX%. fiscal our on the now by are to well

that commodity A freight in to are lower through and the efforts. Our gross a example our benefited from efficiencies. labor initiatives operational been driving our lower automation costs, efficiencies labor great include these we've able decline margin Work costs savings inbound of certain Smarter produce costs,

ago. Medford, further half facilities by these all or we automation, their facilities and to for in third of the package to second main current X% as of productivity Hopewell are gains, a first achieve fiscal reduced of in month at and per and Atlanta Our approximately the year continue year distribution year the compared cost labor December the

our Additionally, holiday the of leading heading due efforts, in to inventory write-offs. into and our shape fewer good inventory inventory levels optimization to out season, were

factors fuel leading delays helped weather to as introduced from mother nature who and that well shipping had customer us a credits. was related a the These a period. holiday new hand promotional also this more with surcharge shipping holiday as fewer season, environment We helping offset good later in provided

to continue expenses. our as compared also impairment nonqualified impact a and charge P&L, excluding reduced the We optimize of $XX.X our the million ago. we on expenses plan the to compensation accounting by operating year And

our quarter EBITDA in compared year. the adjusted million As a prior second result of these $XXX.X as to factors, million was $XXX.X

the trademark. Consumer Floral for segment income related Gifts the to want and the Personalization I review in we noncash charge Before Mall we address quarter, to net the took group impairment

intangible assets. review of of we our know, many As periodically you the value

required rate the quarter. a Our during reevaluate to us the higher impairment the sheet. of a revenue recorded resulting rate for our Mall our discount intangibles $XX.X noncash Personalization forecast the for with Personalization million on interest Mall, we Consequently, environment, combined charge balance higher business from value

income per Net million income of income $XX.X per $X.XX in per net noncash share the $X.XX $XX.X compared and or prior adjusted or period. share $X.XX of year for $XX.X million the quarter net charge Adjusted share. or per million with share, $X.XX the including was was million or payment $XX.X

results. segment review Let's

inventory this million profit $XX.X was segment Our expanded in of to Gourmet in $XXX.X of declined period. costs, declined lower XX% holiday for year costs, revenue primarily $X.X decline points and light the last million million margin margin with $XXX.X Gift the a decline. compared compared contribution commodity reduced to lower million prior spring orders revenues Food the segment, wholesale with business, basis period, year segment's $XXX year labor the million, $XXX.X in declined had period, the Contributed to Segment as write-offs. due the compared their which to This environment. season in with lower to and our decline freight margin from contribution X.X% retailers XXX consumer prior prior million XX.X% in costs several benefiting Basket certain gross

Gifts segment, segment in with the contribution XX.X% and revenues Floral basis period, ago. year the of with to In points period. in excluding a expanded million margin compared decreased X% year Profit Consumer lower with year million labor XXX our impairment improving $XX.X compared $XXX margin, on XX.X% and million $XXX.X charge, margin contribution prior compared prior Segment $XX.X was the freight costs. million to

million. decreased margin merger our with In the BloomNet in million reflecting compared period, business in $XX.X by a for volume their order revenues competitor. BloomNet, $X.X partners with with which of quarter mix. million Gross prior lower XX.X% as segment, decline profit included well freight margin as impacted product was one the compared expected following Revenues were prior processed lower the period. year the by $X.X the in our by Segment orders primarily to contribution costs year XX.X% XX.X% was

balance to our sheet. Turning

the position the second at $XXX.X end million, of year's $XXX.X was the and investment the inventory was cash Inventory second declined quarter. million last of at remember quarter. million end Our $XXX

terms we and $XXX In revolving under in million facility. our of credit borrowings debt no term debt, had

our net end with compared second million $XX.X the at year's result, quarter. $XXX a cash of last was As million

share. $X.X under shares of entered we repurchased at repurchased into we million cost of Friday. XXbX-X repurchase as amounts stock stock last this an $X.XX quarter, a approximately per of XXX,XXX the This average our plan During to plan that and

Let's turn to our guidance.

XXXX our revenue outlook. expense range as a expect expect range revenues while of range EBITDA million adjusted the our million affirming compared of now basis optimization EBITDA the our be in $XX We cash revenue XXXX, $XX prior in our year. be to on are to as the We're guidance guidance free improvement, Fiscal with flow guidance to our combined fiscal decline efforts, to we gross $XXX margin million with offset million. X% to percentage the X% adjusted in and total we our to softer maintaining lowering to $XX

Q&A. Now to Jim before open I'll closing for it comments for back turn call up the we

James McCann

Bill. Thanks,

to look to half the we As second of forward sales back the first at albeit a trends the half, move and the on our pace. right quarter-over-quarter in direction, slower continue year

having now is direct offset Combined we're Smarter and at business. Work than on recurring the clear our be recovery, we and margin with this impact profit relationship by expect initiatives, to gross We a which our a faster expected. innovation pace

factors consumer We [indiscernible] further expect environment in performance to fuel these discretionary improves. our

predict and, by to environment underway. Work become that our favorable, is the consumer further buoyed the and consumer we While for initiatives more results it's to are our going believe evergreen relationship be Smarter difficult when in and innovation particular, will well lower-income only

to Now and couple only Valentine we special a public a place your your before weeks the Holiday people questions, I announcement. is away, in open call all suggest your orders for those The of life today. you service

questions. your Now to

Operator

first Anthony with Lebiedzinski Company. Sidoti [Operator comes from Your Instructions] question &

Unknown Analyst

of versus and Passport bit and changed regarding year? around more This membership question little much about the frequency first Alex on color whether members. during of holiday nonmembers you members season is from bit and the spending order is a those toward Celebrations give Could a for prior little share Anthony. path My the that

James McCann

is the name this here. he far isn't That pronunciation Alex, missed of Too best and heard we've bad, Anthony so Jim. it. was his

But it customer behaving is Tom to your years. as quite for as number and now question, it I continues give on will your But question. a the the would details overall, say, of you Passport has Alex,

we think special from loyalty gradually shipping I on to are the enhance have moving you'll just a program capability free plans that now later to a lot program. Passport a of It's offers. programmatic hear --

this a is a that treat group special them should. to way we're and of people, in we So special trying

see course this the of introduced stream a we throughout you'll have year. programs that of So

But specifics Alex's question, Tom, of... to as of patterns the spending

Thomas Hartnett

Yes.

are our which we'll Passport than lines, that as the trend to continue purchasing average X year-over-year, year same So Xx a ago, see customer more customer. to

are lines those direction. all to same move so in And continuing the

So...

William Shea

our And our Passport about XX% customer represents revenues. of

Thomas Hartnett

Right.

Unknown Analyst

costs cost the Red the color. other Curious freight, are think Sea. to that And Are the some seeing in you Houthi regarding I commented significant commodity ocean of appreciate the about given mean. freight increases? cost I normalizing any you one attacks

James McCann

year with give Alex, be going will but who but the ago are. that Bill would you yet. And what's color But some anticipating on a we specifically, thought costs? we're ocean Bill, that. impact, on haven't his we'd about Houthis, have we talking freight

William Shea

the to the jumped attacks Red certainly, markets have on Due pretty Yes. up freight. spot in Sea, dramatically the Houthi ocean

the basically that carry the have us of year. We through contracted rates end fiscal

the honored And so have far, carriers rates. those

long and depend negotiations those few and Red how persist future whether months, holiday and is year's that the what unknown area. the bigger We will affects lot The issues negotiations season. next in happens in Sea begin on that a for rates a in

James McCann

that overall too, we're companies U.S.-based, the lessen our commodity source items to like we that steps Alex, import them is So are so longer color those we that for range, many do on can that, can, so we taking dependency domestically.

much pretty to started we'll like think the in has continue I every and that, U.S. pursue company a that. program

they on But our would -- don't would summertime. imports the anticipate we we're that the the that But said, the primarily the tensions year, of Sea the Bill end an fiscal we have holiday if area fiscal a the anticipate into in June year-end, continue hit. arrive in as Red through summertime, impact

Unknown Analyst

Appreciate the And you or opportunities me. for are color question curious about thinking guys for last there. 'XX how 'XX. acquisition

James McCann

to lot have capital, with has look which there's a And I'd that third flesh the in service can so our months, would beneficial -- is offerings always for to for looking suite in say acquisitions. I out we changed service XX dramatically the our has service many customers a on months, way a offerings to I a XX to for we're our the see put talent there's now last find the if that be have of of our think we or help we right customers. really available we offerings, cost Well, hurt because so say area acquisitions the market that a us would the -- companies.

improve service what at our better but we're really genuinely about us, being disciplined available So does about genuinely for there's very does it offering a we help make it it lots our customers. judicious company, does being us and look

So we're expect but There's too to a active. going doing be available, I dramatic. we're that wouldn't anything lot

Operator

Michael And Markets. Kupinski Capital with our next question comes NOBLE from

Michael Kupinski

the right where of in from to maybe the A commodity about opportunity a talk we Can can I'm mean. opportunities commodity percent? -- of prices and going give parse you there. couple you them. left you So of what how relative in of a are to are prices maybe commodity sense the about Can they of are mean talk price now the terms yet where kind us relative terms to

James McCann

I would It surcharges. fuel over that ago, went prices. a how surcharge million of I it hit at a it it? Michael. $XXX this mentioned we say -- well of very to in year. commodity years Well, did was a cost with how few terms Jim, this course, X peak a hit we say, have Well this December dollars with that us when year is would got barrel the Bill already that of beginning came we started, did

commodities that say in us, flour, lot, food, we lot butter, you are that important use XXXX would levels. we of. Bill, not lot to I are that of a know are where prepare bake so other we're The a kind scheme? a commodities we all eggs of back we to

it's back. of to -- ingredient, not Whatever cost Where It's a that's [indiscernible]. come going are the did going we the increases a is and in by not one. terms pressure there commodity, labor, but way, but to is stay,

on now, we actual are Bill? Where commodities

William Shea

like historical their high. means, is certain back split. and and but more Those butter there eggs. to it's Yes, mention, that very commodities others are cocoa of to sugar There's still certainly are

we're were, actually back the you a points for our from if step year. quarters standpoint, the XXX of basis quarter, up where basis first margin exceeding think expectations up XXX take points a year-to-date, X I gross

almost so You the Labor just -- lot the labor availability of having inventory and less some quarter our profit logistics of it to led and that those can macro of kind to availability X of our of a with items, needed our we be into kind of commodity split us those pockets, allows freight, in -- costs that some gives initiatives, that us efforts, out mentioned. both you gains ocean flexibility, automation levels efficiencies, Inventory which the write-offs. the planning. at, inventory our operational

James McCann

companies, But of last inventory the like because side, logistic inventoried challenges. on we so up year, many

were we the product. have much had year, so we So buy so sure This didn't we early. to

William Shea

That's right.

So again, of the at maybe the to less which able which and the improved some to the to as level, a trends result write-offs, secure of being supply time, macro chain us at being inventory manage inventory margins. global led led appropriate more

a well as of really, Work initiatives Smarter had. macro we both as So internal combination that

James McCann

but So than mean higher been costs have still overall, about, we improving. commodity are talk the

William Shea

commodity Certain levels. correct. are That's come components others cost mean, the still of back at but to have high very

Michael Kupinski

Okay. begin Smarter do initiatives against you of portion And when substantial the Work to we the implemented? comp

William Shea

effort. is an Smarter Work ongoing

So those an certainly, But year. example the where then of efforts, is in we're we're the our second automation now that. facility, efforts. And automation our year we distribution add in continue third one to to in facilities, of many

are and down, our over X% cost Labor per like efficiencies last year. down year are labor this package

James McCann

automation. So are average up, are but our the up. labor our of our efficiencies because efficiencies down costs, Labor are

William Shea

Exactly right.

James McCann

efforts. those continue, automation we'll with And Michael,

on facility, So programs implementing now. we're the we're in and/or year and as Bill on mentioned, new of second that depending top third a

William Shea

We're So future. continue ongoing into savings Michael. get to effort, this to the is an going

Michael Kupinski

bit this its terms Personalization and you expectations Mall there? Personalization might for Got have at talk then and year of balance you. about you the little what of Mall looking how a in you performance then, are can And

James McCann

that combination Tom give that. with a have happened you will the of Personalization on There's things full color Mall.

Thomas Hartnett

year. the the our the a first Michael. with for just of quarter. in Yes, the will other segments, they Personalization in line the Mall business the than in expecting, maybe trend the rate direction of be of And half were little The -- like sales segment, was than a better that we're roughly for second the better performance year half the bit segment

James McCann

One -- launched Mall around Things there we introduced IP program we is in Personalization the rechristened Remembered.

different So that's product. new well-known to in brand of is us product That and be and opportunity line range a with new a brand, gives broader a of brand it the range a products. a

really points, Tom, about [indiscernible] like vase we that. have that So the fancy -- higher items, price Michael, we

Thomas Hartnett

Yes.

one obviously, that's it's I every it's of mean, and for I our day. it's So vase that better -- personalized retails a wonderful... think And sellers the $XXX. over

James McCann

item. Beautiful

Thomas Hartnett

Beautiful item.

So IP, just build and again, our -- because sellers. acquired us we getting best there up time inventory some it's to we're started taking when the AOVs kind in the and of the their

ticket of of XXXx basis that Personalization AOV. So we but the is average holiday this to or points got season, portion a XXX Mall higher the

people's and good So of gifts cohort it be feeling great or or moments point, price customers, retirements weddings special a whether lives. and addressing different in --

So...

James McCann

leveraging But in the that same Michael. off all there fixed Mall, fixed cost, we facility same Personalization have

Michael Kupinski

if last you. you One don't Got question, mind.

your guidance Are In you of baked are? expectations guidance -- us economy? sense of into of terms expectations can are year, for like the of general those what give the terms revenue you in some what kind your

James McCann

Bill?

William Shea

slightly around half be Michael, of to down year the second our half being first down into we the better so revenue year. implying of a revised trend X% to X%, with X% the guidance the

I modified were into second be guidance, year. year. seeing I through and the of even that the hopeful the that our both at would be the beginning second think, quarter think We half the improvements of we're we've the accelerated, more

as So than we it to being what as macro that be. not hoped tied would it is we the slower a and robust is improving at anticipated, pace environment originally

James McCann

were we for. the So not the into baked improve, is to continues at just hoping pace that trend

Operator

our today Davidson. D.A. Bolton-Weiser Linda from comes with And question next

Linda Bolton-Weiser

been like wondering, XX was I the mean sentiment X for consumer below consumer now comments has Michigan years. consumer environment, just your about I So sentiment.

consumer obviously. just sentiment seems So we're which stuck your this business, it low good is in for like thing, not

cost Is about terms you do continued Or on for you if this about could like your this persist, about business? you anything would this another still think But differently? would in structure? there year, you think of things another for year? in think what different revenue say, how additional do you declines like this doing would would what like with How if let's --

James McCann

you last X. We quarter. question, experienced. kinds the question the your about is e-commerce or over still Linda. for of couple we're of lot good bounce month last of so Thanks recovering the things. is And as one talked like missed us companies and answer the we've a Really from COVID our many a One

still that. in we're So that back end of of the wave

news second is seeing we The We is good, the that And buy. think COVID in bifurcated. have, data thing Bad ours share that news, I is that like it's And pretty sentiment hit is we but good look news. the at consumer end news categories wave. has this that holding of generally the hard The with gotten good we're or the everyone gaining categories back it. are share. very our bad competitive

bad. and good So

it in the the -- sure from could that that make for to would operating our that on this didn't good. it on, way, it's the the be which be and we But pace it we our to pace could then is on If several sure make bottom that we went recovery, a think and we levers to consumer continued we and if model is pull quite we this healthy. we're little declines make we're to maybe on that make trend worse, strong. that continues then what trend really of gets other And for on continue leverage to if -- and trend line profitability continues up have -- think trend bit, quite a the bit improves have

would else you add Bill, to what that?

William Shea

Yes.

perspective, offerings, price segments, we and our our opportunities pricing pricing, have the we a we some to from of our in appropriate evaluate have top each ensure consumer our elasticity that. bundling for line Just continuously points

are improve to on ultimately, very we to those the macro of some it -- consumer-focused, So trying to against buck trends. experience consumer

James McCann

and the you the at higher when price end. about lower talk points, So you end both mean elasticity,

William Shea

From low yes. margin of our our kind back an -- XXs. mean lines -- costing trend the gross our as a are perspective, pace the of on moving accelerated towards the at

optimization, expect to And seen we softness So and expense last X.X years, that continue to efforts top our watch continue line. going any that will you've to improve. for in we're margins the those gross the

James McCann

would we'd summary, to in capability it But appropriately. trend -- if turn to negative, have have that doesn't we hope we'd it So the be ability plans respond happen. do and that the we

Linda Bolton-Weiser

Can means one more out Google? companies what additional them. marketing you with regard I ask blast figure mean the They're made for changes some what consumer they've about their think processes? to have trying your to that my I marketing mentioned. changes e-mail for of Have some analyzed those that

James McCann

in of weather to big and hope quarter dependent last we that we the that trends less the or We position there's have, in respond us about Linda. the that implementing frankly, There's on talking we're in experienced we're the were. And we big good is lots marketplace going they the and are implementing, happening of to changes macro awfully And the during changes. be than that feel both Google to. engines what future some things have implemented there's a give search also

accumulated some COVID One our huge in a database. of assets the increase we've flexibility the that through big dependency was gives And engine burst on and activity. search us less

know Tom, Linda's of well question. the But really specifics you

Thomas Hartnett

as the how dynamic changes the this business changes landing Certainly, also just to. and I surf is on. significant some another think talking change year, always pages going reacting we Yes. a always Google has we're for just saw Linda, Google, in showed very up and for up, I we're mean, which which

CPMs that expected to et were we up, and Their environment. occur. of competitive CPAs cetera, a was this Overall, kind and

James McCann

all it's big -- a you at if budget have And your or marketing on substantial there, you. is that to marketing going bottom-in-a-funnel activity of part kind of your budget of ramifications a

that's case. us, not the for Fortunately,

Operator

Fuhrman Instructions] [Operator Craig-Hallum. comes Today's with from question Alex next

Alex Fuhrman

we Congratulations the strong guidance not results far bit if all not were insignificant. seems on a the the revenue more. to bottom what year revenue the lower you off It little Bill, in I like quarter. the very guidance results change unpack from but the full line is was QX were expecting, wondering could

the Or something Valentine's Day or curious a too in bit and Christmas it if maybe disappointing? is early. maybe trend just you're So since Valentine's of Day kind between lines if early little that seeing any was low now of that's kind seeing maybe period you're

James McCann

because burst I real that's Day, it's business. The is from a big it's pain frequently Mother's is but female on Thanksgiving. It Day neck wonderful very goes -- to say Valentine's which our in for or dynamic a a don't do. several Day, Valentine's majority X-week majority it's X very, Customer too and Well, would come from a definitely customers as back quarter early. ramp-up. changes. of days. Thanksgiving customers, are holiday as busy before regularly But the week they it's maybe men, women

our of this So we have business. and expensive burst for, it's we -- to something up, big of it's jumps prepare cost goods way

project And what the So yes, it's will Day. last time, is happen us before Super for exactly to Day. little was for difficult year, Valentine's the Valentine's a right as for placement date mentioned, critical first in Tom Bowl But Valentine's Day.

and allow the from moved They and the last regular its Super was Sunday. and the have Bowl. till back extra time it normal Tuesday was to So more game it's for Valentine's X from Super at day the schedule season Bowl a -- playoffs week, year weeks divisional still

still that going to So we have think year. this we're that

selling but to with say and of now just the routines days, Tuesday the Monday, their distraction still if I close Bowl you normal and XX so. before, hours work X it's So people having not have Super Valentine's Wednesday in Day

big that's our will to the carefully things variable. Also, we're to weather a all have So because expecting [ those we ] of benefit. watch endure

nothing through a I've the So anything trend-wise a Valentine's excited kick been as as give any we neck, we're would of is Day us It's frankly, But recent mentioned. pain -- coming. that getup on or, I've in don't few heels. concern our these. that any see

William Shea

of didn't we mean, second it that at trend our I pace improve in But Alex, the anticipated. move sales quarter, did while recovery had the

at we a why And So faster thought half originally be. still to improvement guidance. than as the a at. That's second be changed we're we than our result, it softer currently year, wanted which little of to we had our a

Operator

the question-and-answer remarks. And McCann to for session. closing gentlemen, back Jim our conference concludes ladies I'd like over and to this any turn

James McCann

you. so thanks questions. available Please to know us have them if for other your interest time today. answer reach much Please and for We're let out. any Well, you

February as your them. or remember, mentioned, so the Day about just know Xth, is you approaching. people for the in how Today's, begins around do you And care Xth life that sure that Day much is care fast Valentine's Alex X. XXth. Valentine's Valentine's make weekend

Thanks for your time today.

Operator

for presentation. today's This attending conference you. today's We Thank all thank you concludes call.

disconnect now wonderful may lines, your have a You day. and

1-800-FLOWERS.COM (FLWS) 1 Feb 242024 Q2 Earnings call transcript