1-800-Flowers.com, Inc. expects its fiscal 2026 revenue to decline between 10% and 12% year over year [1].
The projection signals a challenging period for the floral and gift retailer as it attempts to stabilize its financial footing amid shrinking sales. This downturn follows a recent quarterly revenue drop of 11.6% [4].
To counter the decline, the company is targeting additional cost savings of $15 million to $20 million [1]. Management intends to use these measures to absorb consultant costs and incentive payouts, efforts designed to build a more resilient operational base.
For the 2026 fiscal year, the company expects its adjusted EBITDA to be near breakeven, estimated at plus or minus $2 million [1]. This flat earnings projection reflects the company's current focus on cost management over aggressive expansion.
CEO Adolfo Villagomez said the company remains focused on stabilizing the business and building a stronger foundation for future growth as it moves through fiscal 2026.
Villagomez also highlighted improvements in the company's operations. He said the company delivered a significantly improved customer experience with strong gains across its key service.
The company's strategy involves balancing these service improvements with a lean cost structure to navigate the forecasted revenue dip [1].
“1-800-Flowers expects its fiscal 2026 revenue to decline between 10% and 12% year over year.”
The shift toward a breakeven EBITDA target and aggressive cost-cutting suggests 1-800-Flowers is prioritizing survival and stability over growth. By focusing on 'stabilizing the business' during a projected revenue contraction, the company is attempting to protect its margins and maintain operational viability until market conditions improve or its customer experience gains translate into higher sales.
