On this page of StockholderLetter.com we present the latest annual shareholder letter from 1 800 FLOWERS COM INC — ticker symbol FLWS. Reading current and past FLWS letters to shareholders can bring important insights into the investment thesis.

 •  10/25/2024 Letter Continued (Full PDF)
 •  10/30/2023 FLWS Stockholder Letter
 •  More "Specialty Retail" Category Stockholder Letters
 •  FLWS Benford's Law Stock Score = 81

FLWS Shareholder/Stockholder Letter Transcript:

1-800-FLOWERS.COM, INC.
LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
As we reflect on Fiscal 2024 and look ahead to Fiscal 2025, our company has demonstrated remarkable
resilience and adaptability in the face of persistent macroeconomic challenges. While the topline
challenges we encountered lasted longer than initially anticipated, our focus on operational efficiency
and strategic investments has positioned us well for future growth and value creation.
It   s clear that the broader macroeconomic environment remained far more challenging than initially
anticipated, impacting our topline results. This prolonged period of high interest rates and persistent
inflation has had a significant impact on discretionary spending, especially amongst lower-income
households.
Our ability to adapt to these changing market conditions has been crucial. Over the past year, we have
executed on our strategic initiatives to broaden our product offerings, broaden our price points, and
enhance the overall customer experience. By introducing new and innovative products, we have
expanded our offerings to a wider range of our customers    expressive needs. Our efforts to expand our
price points, both higher and lower, have made our products more accessible to a broader audience
while also capturing premium market segments. Additionally, we have implemented several customercentric improvements, ensuring that our customers receive unparalleled value and satisfaction.
Despite the topline pressures in Fiscal 2024, we demonstrated resilience, particularly in our gross
margin. Our gross margin increased 260 basis points in Fiscal 2024 to 40.1%. We have now recovered a
meaningful portion of our gross margin that had been eroded over the last few years due to supply
chain challenges and higher ocean freight, commodity, and labor costs. This recovery is a testament to
our diligent focus on cost management and operational efficiency, combined with favorable movements
in certain commodity costs.
By implementing strategic cost controls and optimizing operations, we reduced our year-over-year net
loss to $6 million and grew our year-over-year                  EBITDA to $93 million, underscoring our
commitment to financial health amidst a decline in revenues. Additionally, we generated $95 million of
net cash from operating activities, resulting in $56 million of free cash flow, during Fiscal 2024 and our
balance sheet remains pristine. We ended the fiscal year with $190 million in term debt and no
borrowings under our revolving credit facility.
Strategic Investments
Over the past year, our company made two acquisitions that further elevated our offerings. The first
was the acquisition of Card Isle  , an e-commerce greeting card company, that enhanced our print-ondemand personalized greeting cards offering and enabled us to address a wider range of our customers   
expressive needs. And the second was the acquisition of Scharffen Berger Chocolate Maker, a producer
of high-end, extraordinary chocolates, that enhances and expands our chocolate offerings.
Looking ahead to Fiscal 2025, we remain optimistic about our prospects. Our gross margin recovery is
well underway, and we continue to prioritize operational efficiency. We are also strategically investing in

our business to improve our topline trends. These investments are aimed at enhancing our customer
experience and expanding our market presence.
Despite a challenging consumer discretionary spending environment, our strategic investments
differentiate us from competitors. We are focused on increasing customer frequency and retention by
positioning ourselves as the preferred destination for gifting needs. Our approach includes leveraging
our recent acquisitions and innovations to better serve our customer base by offering more gifting
options and broadening our price points.
Relationship Innovation Advancements
Our Relationship Innovation strategy is at the heart of our efforts to enhance the customer experience
and improve topline trends. We are continually refining our product offerings, pricing strategies, and
user interface to better meet the needs of our customers. This includes expanding our product portfolio
through both organic growth and acquisitions. For instance, the recent integration of Card Isle has
strengthened our greeting card category, allowing customers to send personalized cards seamlessly
through our platform.
In response to the bifurcation of trends in our customer base by income level, we have broadened our
pricing strategies. For price-sensitive customers, we introduced offerings like the Bouquet of the Month,
providing high value at an attractive price point. Conversely, we are enhancing our high-end product
bundles to cater to higher income customers, exemplified by our successful integration of Things
Remembered   and the recent acquisition of Scharffen Berger  .
Looking Forward
As we move into Fiscal 2025, our focus is on capitalizing on our investments and enhancing our
platform   s capabilities. We anticipate growth in our corporate gifting segment and expect our wholesale
revenue to benefit from strong holiday season orders. Our continued emphasis on last-mile delivery and
expanding our product assortment will further bolster our growth prospects.
Since our inception, our mission has been clear: to help people connect with and celebrate the
important individuals in their lives, fostering deeper and more meaningful relationships. This
commitment has, in turn, strengthened our relationships with our customers. Embracing change and
innovation has always been at the core of our journey, allowing us to expand our offerings and improve
the customer experience, ensuring they find the perfect gift for their special occasion. We are dedicated
to building a true community by engaging with our customers across a wide range of communication
channels, providing them with the most comprehensive online gifting experience.
We are excited about the opportunities that lie ahead and remain committed to driving long-term value
for our shareholders. We appreciate your ongoing support as we work towards achieving our goals and
delivering enhanced value.
Sincerely,
Jim McCann
Chairman and Chief Executive Officer



 10/25/2024 Letter Continued (Full PDF)