E-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) met Wall Street’s revenue expectations in Q2 CY2026, but sales fell by 12.9% year on year to $293.1 million. Its non-GAAP loss of $0.80 per share was 11.6% below analysts’ consensus estimates.
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1-800-FLOWERS (FLWS) Q2 CY2026 Highlights:
- Revenue: $293.1 million vs analyst estimates of $293.6 million (12.9% year-on-year decline, in line)
- Adjusted EPS: -$0.80 vs analyst expectations of -$0.72 (11.6% miss)
- Adjusted EBITDA: -$31.02 million (-10.6% margin, 27.9% year-on-year decline)
- EBITDA guidance for the upcoming financial year 2027 is $12.5 million at the midpoint, below analyst estimates of $20.02 million
- Operating Margin: -19.2%, down from -13.5% in the same quarter last year
- Free Cash Flow was -$33 million compared to -$36.1 million in the same quarter last year
- Market Capitalization: $223.7 million
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 put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, 1-800-FLOWERS’s demand was weak and its revenue declined by 6.7% per year. This was below our standards and suggests it’s a low quality business.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. 1-800-FLOWERS’s recent performance shows its demand remained suppressed as its revenue has declined by 9.4% annually over the last two years. 
This quarter, 1-800-FLOWERS reported a rather uninspiring 12.9% year-on-year revenue decline to $293.1 million of revenue, in line with Wall Street’s estimates.
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 catalyze better top-line performance, it is still below average for the sector.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
1-800-FLOWERS’s operating margin has shrunk over the last 12 months and averaged negative 4.3% 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.
In Q2, 1-800-FLOWERS generated a negative 19.2% operating margin. The company’s consistent lack of profits raises 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 21.5% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
In Q2, 1-800-FLOWERS reported adjusted EPS of negative $0.80, down from negative $0.69 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 will improve from negative $1.20 to negative $0.33.
Key Takeaways from 1-800-FLOWERS’s Q2 Results
We struggled to find many positives in these results. Its full-year EBITDA guidance missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 15.5% to $2.95 immediately following the results.
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).
