1-800-Flowers (FLWS) Q3 2026 Earnings Transcript

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Date

Thursday, May 7, 2026 astatine 8 a.m. ET

Call participants

• Chief Executive Officer — Adolfo Villagomez

• Chief Financial Officer — James Langrock

Full Conference Call Transcript

Adolfo Villagomez: Thanks, Andy, and bully morning, everyone. As we determination done fiscal 2026, we stay focused connected stabilizing the concern and gathering a stronger instauration for aboriginal growth. During the 3rd quarter, we proceed to marque advancement connected the cardinal initiatives we outlined earlier this year, and we are starting to spot aboriginal signs that our actions are improving execution and the wide lawsuit experience. I privation to commencement with our Valentine's Day performance, which is an important indicator of that progress. This year, we delivered a importantly improved lawsuit acquisition with beardown gains crossed our cardinal work metrics. These results bespeak amended execution, stronger processes and a wide absorption crossed the enactment connected delivering a high-quality acquisition for our customers.

Importantly, this advancement validates galore of the structural and operational changes we person been implementing. We are present opening to spot tangible grounds that these actions are improving show crossed cardinal areas of the business. While determination is inactive enactment to do, we are encouraged by these results and the absorption of the business. From a class perspective, our Gourmet Foods and Gift Baskets conception performed amended than our Consumer Floral and Gifts segment. As James volition sermon successful much detail, this reflects the Easter timing displacement and the heavier level of inefficient selling walk successful our Consumer Floral and Gifts conception a twelvemonth ago, combined with our absorption connected improving selling publication margin.

As portion of our efforts to broaden our lawsuit reach, we besides proceed to grow our beingness crossed third-party marketplaces. Ahead of Valentine's Day, we launched a caller concern with Instacart. This builds connected our strategy to conscionable customers wherever they are already buying and to grow entree to our floral and gifting worth proposition. Through this partnership, our offerings are present disposable connected the Instacart app, supported by our web of section florists. This increases velocity and accessibility, peculiarly during highest occasions portion besides supporting our florist partners and introducing our brands to caller customers. At the aforesaid time, we're strengthening our absorption connected the lawsuit acquisition crossed our integer platforms.

During the quarter, we afloat implemented AI-powered sorting and ranking connected 1-800-FLOWERS.com. This brings lawsuit selected champion sellers to the apical of our merchandise rankings and reflects a much AI-driven customer-first approach. This is an important measurement successful modernizing the business. Historically, merchandise placement was much heavy influenced by merchants. Today, we are prioritizing the products customers choose, which improves the wide buying acquisition and results successful higher sales. We are simplifying the buying acquisition by reducing prime successful definite areas to marque it easier for customers to find the close gift. In addition, we are evolving however we run our floral business, including however we equilibrium florist-fulfilled orders with shipments fulfilled from our organisation centers.