1-800-Flowers.com Inc (NASDAQ:FLWS) reported its financial results for the first quarter of 2024, disclosing a net revenue of $269.1 million and a net loss of $31.2 million. Despite the net loss, the company managed to improve its gross profit margin by 450 basis points to reach 37.9%. The company also reduced its adjusted EBITDA loss by $5.5 million, bringing it down to $22.5 million.
Jim McCann, the CEO of the company, associated these improvements with favorable macro trends and improved operational efficiency. He particularly highlighted the role of lower ocean freight and commodity costs in the expansion of the gross margin.
Looking forward, the company expects some pressure on revenues in fiscal 2024 due to a challenging consumer environment. However, it anticipates year-over-year improvements during the holiday period and the second half of the fiscal year.
On the balance sheet front, as of October 1, 2023, the company had total assets worth $1,051,348,000 and total liabilities amounting to $608,457,000. This left stockholders' equity at $442,891,000. The company's cash and cash equivalents stood at $8,375,000 with net cash used in operating activities at $143,884,000.
For Q1 2024, the company registered a gross profit of $101,928,000 on net revenues of $269,050,000 along with a net loss of $31,242,000.
The company comprises brands like 1-800-Flowers.com and Harry & David. For further details about the earnings release for Q1 2024, interested parties can refer to the complete 8-K earnings release made available by the company.
InvestingPro Insights
Based on the data from InvestingPro, 1-800-Flowers.com Inc. (NASDAQ:FLWS) has a market cap of $546.92 million and a P/E ratio of -12.33 as of Q4 2023. The company's revenue for the last twelve months as of Q4 2023 was $2017.85 million, a decrease of 8.61% from the previous period. The company's gross profit for the same period was $757.53 million, constituting a margin of 37.54%.
InvestingPro Tips suggest that while the company's net income is expected to grow this year, there has been a declining trend in earnings per share. This is in line with the company's recent financial results, which reported a net loss. Despite this, the company's liquid assets exceed short-term obligations, indicating a strong liquidity position. However, it is worth noting that the company's total debt has increased for consecutive years.
In terms of stock price movements, they have been quite volatile, with a 1-month price total return of 8.87% and a year-to-date return of -19.14% as of the end of 2023.
For more detailed insights and additional tips, consider checking out InvestingPro, which offers an extensive list of tips for various companies.
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