1-800-FLOWERS.COM (NASDAQ:FLWS) reported an increase in second-quarter earnings despite a cooling top line, as the gifting giant traded volume for efficiency during its most critical seasonal window.
The company saw net income for the period ended Dec. 28, 2025, rise to $70.6 million, or $1.10 per diluted share, up from $64.3 million in the prior-year period.
The profit boost came even as total consolidated revenues fell 9.5% to $702.2 million.
Management attributed the decline to a deliberate strategic pivot away from low-margin sales in favor of marketing effectiveness and bottom-line stability.
While the sales contraction led to a 120-basis-point compression in gross profit margin—which landed at 42.1% due to deleveraging—the company’s aggressive pursuit of operational leaness bore fruit in its expense reports.
Operating expenses were slashed by $23.4 million to $221.1 million, driven largely by reduced labor costs and more disciplined marketing spend.
On an adjusted basis, excluding non-recurring charges and compensation plan impacts, operating expenses saw an even steeper decline of $25.9 million compared to the previous year.
Adjusted net income for the quarter reached $76.7 million, or $1.20 per share, comfortably ahead of the $69.2 million reported a year ago.
However, adjusted EBITDA reflected the pressure of the revenue dip, falling to $98.1 million from $116.3 million.