1-800-Flowers.Com Inc (FLWS) 2025 Q4 法說會逐字稿

Good morning, and welcome to the 1-800-FLOWERS.COM fiscal 2025 fourth quarter earnings call (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加 1-800-FLOWERS.COM 2025 財年第四季收益電話會議（操作員指示）請注意，此活動正在錄製中。

I would now like to turn the conference over to Andy Milevoj, Senior Vice President, Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係高級副總裁 Andy Milevoj。請繼續。

Good morning, and welcome to our fiscal 2025 fourth quarter and year-end earnings call. Joining us on today's call are Adolfo Villagomez, Chief Executive Officer; and James Langrock, Chief Financial Officer. Before we begin, I'd like to remind you that some of the statements we make on today's call are covered by the safe harbor disclaimer contained in our press release and public documents.

早安，歡迎參加我們的 2025 財年第四季和年終收益電話會議。參加今天電話會議的有執行長 Adolfo Villagomez 和財務長 James Langrock。在我們開始之前，我想提醒您，我們在今天的電話會議上所做的一些聲明都包含在我們的新聞稿和公開文件中的安全港免責聲明中。

During this call, we will make forward-looking statements with predictions, projections and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, including those contained in our press release and public filings with the Securities and Exchange Commission.

在本次電話會議中，我們將做出前瞻性陳述，包括對未來事件的預測、預期和其他陳述。這些聲明是基於目前的預期和假設，這些預期和假設受風險和不確定性的影響，包括我們新聞稿和向美國證券交易委員會提交的公開文件中包含的風險和不確定性。

The company disclaims any obligation to update any of the forward-looking statements that may be made or discussed during this call. Additionally, we will discuss certain supplemental financial measures that were not prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the tables in our earnings release. And now I'll turn the call over to Adolfo.

本公司不承擔更新本次電話會議中可能做出或討論的任何前瞻性陳述的義務。此外，我們還將討論某些未依照 GAAP 編製的補充財務指標。這些非 GAAP 財務指標與最直接可比較的 GAAP 指標的對帳可以在我們的收益報告表格中找到。現在我將把電話轉給阿道夫。

Thanks, Andy, and good morning, everyone. I'm honored to step into the CEO role at such an important time for our company, and I am very optimistic about our future. I want to start by thanking Jim for his support and the autonomy he has given me during this transition. Since joining in May, I have focused on gaining a deep understanding of our business by engaging with employees at every level and listening closely to customer feedback.

謝謝，安迪，大家早安。我很榮幸能夠在公司如此重要的時刻擔任執行長一職，我對我們的未來非常樂觀。首先，我要感謝吉姆在我過渡期間給予我的支持和自主權。自五月加入以來，我一直致力於透過與各個層級的員工接觸並密切聽取客戶回饋來深入了解我們的業務。

These conversations have given me valuable insight into where we stand today, what's working and what we need to change. They have helped us stabilize the business and identify both the immediate and long-term actions needed to set us on the right path.

這些對話讓我對我們目前的立場、哪些措施有效以及哪些需要改變有了寶貴的了解。他們幫助我們穩定業務，並確定了使我們走上正確道路所需的短期和長期行動。

1-800-FLOWERS.COM is an iconic brand, and we have the privilege of being part of our customers' most meaningful moments. But customer expectations are evolving, technology is advancing quickly and competition is intensifying. We didn't fully keep pace with this environment, and as a result, we haven't reached our full potential.

1-800-FLOWERS.COM 是一個標誌性品牌，我們很榮幸能夠成為客戶最有意義的時刻的一部分。但客戶期望不斷變化，技術在快速進步，競爭也在加劇。我們沒有完全跟上這種環境，因此，我們沒有充分發揮我們的潛力。

As we discussed on our last call, our celebration strategy is designed to change that. It represents a fundamental shift in how we engage with customers and run our business. By leaning into this approach, we intend to address the factors that matter most to our growth and financial performance and position the company for long-term success. Looking ahead, I see significant opportunities to improve our performance by becoming a leaner, more agile, customer-centric and data-driven organization.

正如我們在上次電話會議上討論的那樣，我們的慶祝策略旨在改變這種狀況。它代表了我們與客戶互動和經營業務方式的根本轉變。透過採用這種方法，我們打算解決對我們的成長和財務表現最重要的因素，並為公司的長期成功做好準備。展望未來，我看到了透過成為一個更精簡、更靈活、以客戶為中心和數據驅動的組織來提高我們業績的重大機會。

To return to revenue growth, we are modernizing the customer experience, sharpening how we acquire and retain customers and expanding our reach beyond our e-commerce sites. At the same time, we are building greater operational discipline, driving efficiency and enhancing accountability. I will share more of my thoughts in just a moment. But first, I would like to turn it over to James to review our fiscal 2025 fourth quarter and year-end financial results. James?

為了恢復收入成長，我們正在實現客戶體驗的現代化，改善我們獲取和留住客戶的方式，並將我們的業務範圍擴大到電子商務網站之外。同時，我們正在建立更嚴格的營運紀律，提高效率並加強問責。我稍後會分享更多我的想法。但首先，我想讓詹姆斯回顧我們 2025 財年第四季和年終的財務表現。詹姆斯？

Thanks, Adolfo, and good morning, everyone. This morning, I will review our fiscal 2025 fourth quarter and year-end performance. Please note that all comparisons are made to the prior year period and represent adjusted results unless otherwise stated.

謝謝，阿道夫，大家早安。今天上午，我將回顧我們 2025 財年第四季和年終的業績。請注意，除非另有說明，所有比較均與去年同期進行，並代表調整後的結果。

Challenges we experienced throughout fiscal 2025 persisted during the fourth quarter. Our top line remained pressured, and we continue to navigate an evolving customer acquisition landscape. Traditional SEO continued to decline and our bottom-of-the-funnel marketing investments did not yield their expected results.

我們在 2025 財年期間遇到的挑戰在第四季依然存在。我們的營收仍面臨壓力，我們將繼續探索不斷變化的客戶獲取環境。傳統搜尋引擎優化 (SEO) 持續下滑，而我們的漏斗底部行銷投資並未達到預期的效果。

As a result, our consolidated fourth quarter revenue declined 6.7%. This was comprised of an 8.8% decline in our Consumer Floral and Gift segment, a 3.6% decline in our Gourmet Foods and Gift Baskets segment and a 0.6% decline in our BloomNet segment. This was primarily due to a 5.6% decrease in transactions and to a lesser extent, a 1.6% decrease in AOV. This was partly mitigated by the Easter shift from Q3 a year ago into Q4 this year.

結果，我們的第四季綜合收入下降了 6.7%。其中，消費者花卉和禮品部門下降 8.8%，美食和禮品籃部門下降 3.6%，BloomNet 部門下降 0.6%。這主要是由於交易量下降了 5.6%，以及 AOV 下降了 1.6%（較小程度）。由於復活節假期從去年第三季度轉移到今年第四季度，這一現象得到了一定程度的緩解。

For the fiscal year-end, our consolidated revenue declined 8%. This included an 8.2% decline in transactions and a 1.1% decline in AOV, which was partially offset by gains in our wholesale business. At the end of fiscal 2025, we had 9.5 million customers, over 900,000 Passport members and 74% of our revenue came from existing customers. As compared to the prior year, our customer count declined in line with our revenue decline while our Passport membership declined at a greater rate.

截至本財年末，我們的綜合收入下降了 8%。其中包括交易量下降 8.2% 和平均訂單價值下降 1.1%，但批發業務的成長部分抵消了下降。截至 2025 財年末，我們擁有 950 萬客戶、超過 90 萬 Passport 會員，74% 的收入來自現有客戶。與前一年相比，我們的客戶數量隨著收入的下降而下降，而我們的 Passport 會員數量下降的速度更快。

Multi-branded customers and Passport members continue to represent our best-performing customers. During fiscal '25, multi-branded customers represented 13% of our customers and 29% of our revenues, while Passport members represented 9% of our customer base and 19% of our revenues.

多品牌客戶和 Passport 會員繼續代表我們表現最好的客戶。在 25 財年，多品牌客戶占我們客戶的 13% 和收入的 29%，而 Passport 會員占我們客戶群的 9% 和收入的 19%。

As Adolfo will touch on in just a few moments, we clearly recognize the affinity of these customers. We are reviewing opportunities to improve our loyalty program, along with the overall shopping experience to increase membership and promote multi-branded selling.

正如阿道夫稍後會談到的，我們清楚地認識到這些客戶的親和力。我們正在尋找機會來改善我們的忠誠度計劃以及整體購物體驗，以增加會員數量並促進多品牌銷售。

Turning to gross margin. Our fourth quarter gross margin declined 290 basis points to 35.5% compared with 38.4% in the prior year period. This decline was primarily due to a highly promotional sales environment and deleveraging on the sales decline. On a full year basis, excluding costs associated with the OMS system implementation challenges, our gross margin declined 100 basis points to 39.1%.

轉向毛利率。我們第四季的毛利率下降了 290 個基點，至 35.5%，而去年同期為 38.4%。這種下降主要是由於高度促銷的銷售環境和銷售額下降的去槓桿化所致。從全年來看，不包括與 OMS 系統實施挑戰相關的成本，我們的毛利率下降 100 個基點至 39.1%。

Now let's review our fourth quarter operating margins. Excluding nonrecurring charges and the impact of the company's nonqualified deferred compensation plan in both periods, operating expenses declined $3.7 million to $159.7 million.

現在讓我們回顧一下第四季的營業利潤率。不計入非經常性費用以及兩個期間公司非合格遞延薪酬計劃的影響，營運費用下降 370 萬美元至 1.597 億美元。

On a full year basis, our adjusted operating expenses declined $10.9 million to $695.2 million. During fiscal '25, we invested in marketing that did not yield the top line results we were targeting. We've begun to optimize our marketing spend during the fourth quarter, and as Adolfo will discuss in more detail, we see significant opportunities to become more efficient and effective with our marketing efforts going forward.

從全年來看，我們的調整後營運費用下降了 1,090 萬美元，至 6.952 億美元。在 25 財年，我們投資的行銷並沒有產生我們預期的獲利結果。我們在第四季度已經開始優化我們的行銷支出，正如阿道夫將更詳細地討論的那樣，我們看到了未來行銷工作變得更加高效和有效的重大機會。

Based on these factors, our fourth quarter adjusted EBITDA loss was $24.2 million as compared with a loss of $8.8 million in the prior year period. On a full year basis, adjusted EBITDA was $29.2 million compared with $93.1 million in the prior year period.

基於這些因素，我們在第四季度調整後的 EBITDA 虧損為 2,420 萬美元，而去年同期的虧損為 880 萬美元。全年調整後的 EBITDA 為 2,920 萬美元，而去年同期為 9,310 萬美元。

On our last call, we reported the initiation of a cost reduction plan aimed at achieving approximately $40 million in annualized savings, which included $17 million in reductions that already have been implemented. As Adolfo will expand on, we recently engaged an external consultant to assist in identifying and prioritizing additional efficiency opportunities.

在我們上次電話會議上，我們報告了一項成本削減計劃的啟動，旨在實現約 4000 萬美元的年度節約，其中包括已經實施的 1700 萬美元的削減。隨著阿道夫的不斷擴大，我們最近聘請了一位外部顧問來協助確定和優先考慮額外的效率機會。

Now turning to our balance sheet. At fiscal year-end, net debt was $114 million compared with $31 million a year ago. Our cash balance was $47 million. Inventory was $177 million, in line with a year ago. In terms of our debt, we had $160 million in term debt and no borrowings under our revolving credit facility as compared with $190 million in term debt a year ago.

現在轉向我們的資產負債表。截至財年末，淨債務為 1.14 億美元，而去年同期為 3,100 萬美元。我們的現金餘額為4700萬美元。庫存為 1.77 億美元，與去年同期持平。就我們的債務而言，我們有 1.6 億美元的定期債務，並且沒有循環信貸額度下的借款，而一年前我們有 1.9 億美元的定期債務。

Looking ahead to fiscal 2026, we are approaching the year as a pivotal period of foundation setting. As we discussed on our last call, our celebration strategy is a multiyear strategy, and our strategic priorities are focused on positioning the company for long-term growth.

展望2026財年，這一年是我們奠定基礎的關鍵時期。正如我們在上次電話會議上討論的那樣，我們的慶祝策略是一項多年策略，我們的策略重點是專注於公司實現長期成長。

These priorities include driving cost savings and organizational efficiencies, building a customer-centric and data-driven organization, broadening our reach beyond our e-commerce sites into new channels and strengthening our team through enhanced talent and accountability. With a renewed commitment to agility and customer centricity, we believe these foundational steps will set the stage for sustainable revenue and profit growth in the years to come.

這些優先事項包括推動成本節約和組織效率、建立以客戶為中心和數據驅動的組織、將我們的業務範圍從電子商務網站擴展到新管道以及透過增強人才和責任感來加強我們的團隊。透過對敏捷性和以客戶為中心的重新承諾，我們相信這些基礎步驟將為未來幾年可持續的收入和利潤成長奠定基礎。

Now I'll turn the call back to Adolfo.

現在我將把電話轉回給阿道夫。

Thank you, James. Our performance this quarter is disappointing, and it is clear that we need to fundamentally transform our strategy in order to return to sales and profit growth. When I accepted this role, I did so with the belief that 1-800-FLOWERS.COM is an iconic company with products customers love and with a unique place in their most meaningful celebrations. That belief has only grown stronger in my first few months as CEO. At the same time, I have identified several areas that require real change. Some issues can be addressed quickly, while others will take more time.

謝謝你，詹姆斯。我們本季的業績令人失望，顯然我們需要從根本上轉變策略，才能恢復銷售和利潤成長。當我接受這個角色時，我相信 1-800-FLOWERS.COM 是一家標誌性的公司，其產品深受顧客喜愛，並在顧客最有意義的慶祝活動中佔有獨特的地位。在我擔任執行長的頭幾個月裡，這種信念變得更加堅定。同時，我也發現了幾個需要真正改變的領域。有些問題可以快速解決，而其他問題則需要更多時間。

This morning, I want to share my early observations and highlight the areas where the leadership team and I are focused. Over the past five years, our company experienced rapid revenue growth, followed by significant declines. While macroeconomic headwinds played a role, internal challenges also contributed. Our customer retention approach was ineffective. Our marketing spend was inefficient and expenses did not come down in line with revenues. So where do we go from here?

今天上午，我想分享我早期的觀察，並強調我和領導團隊關注的領域。過去五年，我們公司的收入經歷了快速成長，隨後大幅下滑。雖然宏觀經濟逆風發揮了一定作用，但內部挑戰也起了一定作用。我們的客戶保留方法是無效的。我們的行銷支出效率低下，支出並沒有隨著收入的下降而下降。那我們接下來該做什麼呢？

We are transforming 1-800-FLOWERS.COM into a customer-centric, data-driven organization with clear priorities and ROI-driven decision-making. Our plan centers on four key areas: achieving cost savings and organizational efficiency, strengthening our customer focus, expanding our reach beyond e-commerce into new channels and enhancing talent and accountability.

我們正在將 1-800-FLOWERS.COM 轉變為以客戶為中心、數據驅動的組織，具有明確的優先事項和以投資回報率為導向的決策。我們的計劃圍繞著四個關鍵領域：實現成本節約和組織效率、加強客戶關注、將業務範圍從電子商務擴展到新管道以及加強人才和責任感。

On our cost structure, the company has not sufficiently adjusted expenses to reflect lower revenues. We have launched a comprehensive review of our structure, supply chain, procurement and IT costs to simplify how we work, eliminate redundancy and build greater agility. We have also engaged an external consultant to help us accelerate time to impact.

在我們的成本結構中，公司尚未充分調整支出以反映較低的收入。我們對我們的結構、供應鏈、採購和 IT 成本進行了全面審查，以簡化我們的工作方式、消除冗餘並提高靈活性。我們也聘請了外部顧問來幫助我們加快影響時間。

Procurement is one clear example of improvement. Today, sourcing is fragmented across brands. By centralizing it, we can leverage scale, lower costs and improve consistency. Similarly, we are reviewing level planning and our end-to-end supply chain to drive further efficiencies. On the customer side, our focus is to simplify and modernize the digital experience, enhance our data infrastructure and transform marketing into a full funnel engine that balances awareness, acquisition and retention.

採購就是一個明顯的改進例子。現今，各個品牌的採購都是分散的。透過集中化，我們可以利用規模、降低成本並提高一致性。同樣，我們正在審查水平規劃和端到端供應鏈，以進一步提高效率。在客戶方面，我們的重點是簡化和現代化數位體驗，增強我們的資料基礎設施，並將行銷轉變為平衡認知、獲取和保留的全漏斗引擎。

Historically, our brands operated independently, but by aligning merchandising to categories and streamlining our brand architecture, we can capture synergies and present a more unified, intuitive experience. We will also use algorithm-driven merchandising to personalize the journey and respond to customer needs in real time. Improving marketing efficiency and retention is central to this effort.

從歷史上看，我們的品牌獨立經營，但透過調整商品類別並簡化品牌架構，我們可以獲得協同效應並提供更統一、直觀的體驗。我們還將使用演算法驅動的行銷來個人化旅程並即時回應客戶需求。提高行銷效率和保留率是這項工作的核心。

Our prior approach spread dollars across too many brands, compete against ourselves in key channels, and it was primarily focused on bottom of funnel spend. We are shifting towards smarter, more efficient marketing that builds brand awareness and demand while creating a flywheel around acquisition, retention and lifetime value. Our marketing framework will also shift from a focus on gross margin to emphasizing variable contribution margin and its direct impact on the bottom line.

我們之前的做法是將資金分散到太多品牌上，在關鍵管道上相互競爭，並且主要關注漏斗底部的支出。我們正在轉向更聰明、更有效率的行銷，以建立品牌知名度和需求，同時圍繞獲取、保留和終身價值創造飛輪。我們的行銷框架也將從關注毛利率轉向強調可變貢獻利潤率及其對底線的直接影響。

Enhancing our loyalty program is also a major opportunity. Today, it functions primarily as a free shipping program. By improving the value proposition, we can drive more frequent purchases and increase awareness of our broader product categories. We also see a significant opportunity in broadening our reach.

加強我們的忠誠度計劃也是一個重大機會。如今，它主要作為免費送貨計劃發揮作用。透過改進價值主張，我們可以推動更頻繁的購買，並提高對我們更廣泛的產品類別的認識。我們也看到了擴大業務範圍的重大機會。

While gifting will always remain at the heart of our business, many of our products also lend themselves to self-consumption. Expanding into occasions where customers purchase for themselves opens the door to new growth. Beyond our e-commerce sites, we will look to diversify our distribution, making our products more accessible in the places customers already shop and creating new entry points to experience our brands. Together, these initiatives will allow us to reach new audiences, deepen engagement and drive incremental growth.

雖然送禮永遠是我們業務的核心，但我們的許多產品也適合自用。擴展到顧客自己購買的場合為新的成長打開了大門。除了我們的電子商務網站之外，我們還將尋求實現分銷管道的多樣化，使我們的產品在客戶現有的購物場所更容易買到，並創造體驗我們品牌的新切入點。這些舉措將使我們能夠接觸到新的受眾、加深參與度並推動增量成長。

Finally, talent and accountability are critical. We're aligning our team with the company's strategic goals and strengthening how we hire, develop and retain talent. We are building a culture that values agility, accountability and execution. This is essential to ensure that our strategy translates into results.

最後，人才和責任感至關重要。我們正在使我們的團隊與公司的策略目標保持一致，並加強我們聘用、培養和留住人才的方式。我們正在建立一種重視敏捷性、責任感和執行力的文化。這對於確保我們的策略轉化為成果至關重要。

As we said on our last call, our celebration strategy represents the next phase of our company's evolution. Many of the areas I have outlined today are central to that multiyear transformation, expanding into other channels, improving frequency and conversion, broadening in price points, improving marketing efficiency, leveraging technology to create a better customer experience and strengthening loyalty.

正如我們在上次電話會議上所說，我們的慶祝策略代表了公司發展的下一階段。我今天概述的許多領域都是多年轉型的核心，擴展到其他管道，提高頻率和轉換率，拓寬價格點，提高行銷效率，利用科技創造更好的客戶體驗並加強忠誠度。

These priorities will guide us as we work towards long-term success. Based on what I have seen and learned so far, I am energized and optimistic about our company's future. While the transformation will take time, I'm confident that the actions we're taking will return 1-800-FLOWERS.COM to growth and create meaningful long-term value for our shareholders. I look forward to sharing more in the quarters ahead.

這些優先事項將指導我們努力實現長期成功。根據我目前所見所聞，我對公司的未來充滿信心和樂觀。雖然轉型需要時間，但我相信，我們所採取的行動將使 1-800-FLOWERS.COM 恢復成長，並為我們的股東創造有意義的長期價值。我期待在未來幾季分享更多內容。

With that, we'll now open the call for Q&A. Operator, please provide instructions.

現在，我們將開始問答環節。操作員，請提供指示。

(Operator Instructions) Michael Kupinski, NOBLE Capital Markets.

（操作員指示）NOBLE Capital Markets 的 Michael Kupinski。

A couple of questions. Regarding your marketing, I know that you said that some of it has been ineffective. And I was just wondering, is it a change in like the use of technology that's causing that? For instance, I know that there's been a decline in search traffic on the likes of Google and so forth.

有幾個問題。關於你們的行銷，我知道你們說過，有些行銷措施是無效的。我只是想知道，是不是技術使用方式的改變導致了這種情況？例如，我知道谷歌等網站的搜尋流量有所下降。

And I was just wondering if there was a dynamic shift in the use of the way that people use technology, given AI-driven and voice type search use. And I was just wondering if that's what you're referring to in terms of the ineffective marketing.

我只是想知道，考慮到人工智慧和語音搜尋的使用，人們使用科技的方式是否發生了動態轉變。我只是想知道這是否是您所說的無效行銷。

Michael, this is Adolfo. Let me put it like this. It's -- it's two things. Number one, and in the short term, in the past, we would spend marketing to drive revenues, and we were not fully conscious of the variable contribution margin that, that transaction would generate.

邁克爾，這是阿道夫。讓我這樣說吧。這是——這是兩件事。首先，在短期內，過去我們會花費行銷來推動收入，但我們並沒有充分意識到交易將產生的可變貢獻利潤率。

So the cost of acquiring customers, in some cases, was higher than the margin that, that transaction was generating. That led to very -- I mean, instead of increasing bottom line, you actually were decreasing the more you spend marketing. So in the short term, we are focusing on variable contribution margin at the expense of revenues to focus on bottom line increases.

因此，在某些情況下，獲取客戶的成本高於該交易產生的利潤。這導致──我的意思是，你花的行銷費用不但沒能增加底線利潤，反而減少了。因此，在短期內，我們將專注於可變貢獻利潤率，而犧牲收入，以專注於底線成長。

To your second question, I mean, as technology shifts, I think overall, what you see, I mean, these days is all about AI and LLMs. But really, I think you need to step back and think about where customers are buying products today. And let's just say that not everybody goes into the search engines to look for product. Our strategy historically has been focused on bottom of the funnel, and it has led us to spend a significant amount of our marketing spend on search engines and in a way we didn't spend in other areas. We're also changing that.

對於你的第二個問題，我的意思是，隨著技術的變遷，我認為總體而言，你所看到的，我的意思是，現在都是關於人工智慧和法學碩士學位。但實際上，我認為你需要退一步思考一下當今客戶在哪裡購買產品。而我們只能說，並不是每個人都會透過搜尋引擎來尋找產品。我們的策略歷來專注於漏斗底部，這導致我們將大量的行銷費用花在搜尋引擎上，而沒有花在其他領域。我們也正在改變這一點。

So to summarize, it's the focus on variable contribution margin dollars for every transaction we have. And as I mentioned in the call, expanding our marketing strategy from bottom of the funnel into a full funnel approach where we actually generate awareness and drive demand.

總而言之，我們的重點是每筆交易的可變貢獻利潤率。正如我在電話會議中提到的那樣，我們將行銷策略從漏斗底部擴展為完整的漏斗方法，因此我們實際上可以提高知名度並推動需求。

Got you. And can you talk a little bit about the competitive dynamic in Consumer Floral? Is there like a bad actor there? Or is it just general competition? Just wondering if you could just kind of add some color there.

明白了。能簡單談談消費者花卉產業的競爭動態嗎？那裡有演技差的演員嗎？或者這只是一般的競爭？只是想知道您是否可以在那裡添加一些顏色。

I wouldn't say there is a bad actor. I think I would go towards more general competition. We need to become more agile. And as I mentioned in the call, I think today, we are in an environment in which we manage products, and we are trying to sell them on our website -- on our e-commerce property.

我不會說有一個壞演員。我想我會參加更普遍的比賽。我們需要變得更加敏捷。正如我在電話中提到的，我認為今天，我們處於一個管理產品的環境中，我們正試圖在我們的網站——我們的電子商務平台上銷售它們。

And as I mentioned before, everything starts with the customer, and the customers are buying now in different channels. So you need to have your products where the customers are, and that is impacting our business in the short term because we were not agile to go into these other channels. But as we speak, we're expanding into other channels to actually drive sales.

正如我之前提到的，一切都從客戶開始，客戶現在透過不同的管道購買。因此，你需要將產品投放到客戶所在的地方，而這會在短期內影響我們的業務，因為我們無法靈活地進入這些其他管道。但正如我們所說，我們正在擴展到其他管道以真正推動銷售。

We're in the process of expanding our products to other delivery platforms to marketplaces and other opportunity areas. You're talking about flowers, but if I expand into Harry & David and some of our other brands, physical retail is also important, and we are moving there and other retailers.

我們正在將我們的產品擴展到其他交付平台、市場和其他機會領域。您說的是鮮花，但如果我擴展到 Harry & David 和我們的其他一些品牌，實體零售也很重要，我們正在向那裡和其他零售商進軍。

We are trying to drive the company to separate product, brand from channels. It doesn't mean that they need to be the same, but you have products that can be sold using different brands and products that can be sold through different channels. So we're looking at this end-to-end. And as I said, I think the number 1 focus here is let's offer our products wherever the customers are already buying them.

我們正在努力推動公司將產品、品牌與通路分開。這並不意味著它們必須相同，而是您可以使用不同的品牌銷售產品，也可以透過不同的管道銷售產品。因此，我們正在從頭到尾研究這個問題。正如我所說，我認為我們最關注的點是，在客戶購買我們產品的地方提供我們的產品。

Got you. And my final question, I know I'm going to let others ask questions. To what degree have commodity prices normalized? I mean, I know that in the past, you talked a little bit about where we are in that journey towards -- getting towards more normalized commodity prices. And I know that cocoa prices have been exceptionally high. I was just wondering if you see the prospect for continued improvement, at least on the commodity price side.

明白了。我的最後一個問題是，我知道我會讓其他人提問。大宗商品價格正常化到什麼程度？我的意思是，我知道您過去曾談到我們在實現更正常化的商品價格方面的進展。我知道可可的價格一直都非常高。我只是想知道您是否看到了持續改善的前景，至少在商品價格方面。

So Michael, this is James. Yeah, as you mentioned, the cocoa remains elevated, but a lot of our other commodities have started to kind of revert closer to their mean. But the one headwind that we're still dealing with, it's obviously a lot better when we spoke three months ago, the tariffs, right?

邁克爾，這是詹姆斯。是的，正如您所說，可可價格仍然居高不下，但我們的許多其他商品價格已開始回落至平均值。但我們仍在應對的一個不利因素是，關稅問題顯然比我們三個月前談到的情況好多了，對吧？

We have a $15 million headwind with tariffs based on the current tariff structure that is out there. Now that's down significantly from the $55 million when tariffs first came out back in -- when we spoke in May. But again, we have that headwind. But overall, the commodities are starting to revert to their mean.

根據現有的關稅結構，我們面臨 1500 萬美元的關稅阻力。現在，這一數字已較 5 月關稅首次出台時的 5,500 萬美元大幅下降。但我們再次面臨逆風。但總體而言，大宗商品價格開始回歸均值。

Anthony Lebiedzinski, Sidoti & Company.

安東尼·萊比津斯基（Anthony Lebiedzinski），Sidoti & Company。

So first question just in terms of the quarter here. Can you comment on sales for the major holidays like Easter and Mother's Day versus everyday gifting? Did you see the same kind of bifurcation between the 2? Just wondering if you can comment on that.

所以第一個問題只是關於本季的問題。您能否評價復活節和母親節等重大節慶與日常禮品的銷售情況？您是否看到兩者之間存在相同的分歧？只是想知道您是否可以對此發表評論。

So on the Mother's Day holiday, that came in line with what we were forecasting. It was obviously down on a year-over-year basis. But that -- one of the things that we did, as you recall, back in Valentine's Day, Anthony, we were investing heavily in marketing to try to drive top line.

因此，在母親節假期，這與我們的預測一致。與去年同期相比，這一數字明顯下降。但是，安東尼，你還記得，我們​​在情人節時做過的一件事就是大力投資行銷，試圖提高營業額。

So from a Mother's Day perspective, we pulled back on getting back to what Adolfo mentioned on the variable contribution margin we're more focused on variable contribution margin and not driving unprofitable sales. So Mother's Day was down year-over-year and came in line with our expectations.

因此，從母親節的角度來看，我們不再回到阿道夫提到的可變貢獻利潤率，我們更關注可變貢獻利潤率，而不是推動無利可圖的銷售。因此，母親節的銷售額較去年同期有所下降，但符合我們的預期。

Okay. And then thinking about the different strategies, Adolfo, that you mentioned, can you give us maybe a sense as to the timing of some of these initiatives? And what's kind of like the low-hanging fruit, so to speak, and which of these strategies that you talked about will take more time to come to fruition?

好的。然後考慮您提到的不同策略，阿道夫，您能否讓我們了解其中一些舉措的時機？那麼什麼是容易達成的目標呢？您談到的哪些策略需要更多時間才能實現？

Thank you, Anthony. As James said, we are seeing this year as a pivotal year to set the foundation for future growth. If you step back for a moment and just say, hey, what was driving the EBITDA decline on this company? I can point you to three factors. Volume decline combined with fixed overhead, the OMS issue we had back during the holidays and then unproductive increases in marketing spend. In the short term, we're addressing those issues to change the trajectory of the business where we start planting seeds to drive future growth.

謝謝你，安東尼。正如詹姆斯所說，我們將今年視為奠定未來成長基礎的關鍵一年。如果你退一步思考，問，是什麼原因導致了這家公司的 EBITDA 下降？我可以指出三個因素。銷量下降加上固定開銷、假期期間遇到的 OMS 問題以及行銷支出無效的增加。短期內，我們正在解決這些問題，以改變業務軌跡，並開始播下推動未來成長的種子。

And the future growth will come from two sources: fixing the core business and as we have been talking about it, is everything starts with product, so you need to make sure that you have the right value proposition.

未來的成長將來自兩個方面：修復核心業務，正如我們一直在談論的那樣，一切都從產品開始，因此您需要確保您有正確的價值主張。

We were talking a lot about the customer. And I want to emphasize that the marketing strategy related to the customer, it is going to be less about the initial transaction and just capturing these customers at the bottom of the funnel, and it's more about how we are capturing these customers, what is the retention strategy to minimize the marketing fee as we acquire these customers and therefore, increase the customer lifetime value over time. That's what we are calling the customer flywheel.

我們談論了很多有關客戶的事情。我想強調的是，與客戶相關的行銷策略，將不再僅僅關注初始交易，而只是捕捉漏斗底部的客戶，而更多地關注我們如何捕捉這些客戶，在獲取這些客戶時，採用什麼樣的保留策略來最大限度地降低行銷費用，從而隨著時間的推移增加客戶的終身價值。這就是我們所說的客戶飛輪。

And the third component is related to, I call it the product discoverability, but it's helping the customer find our product. It's a combination of bringing AI to our websites, modernizing the navigation, search, product recommendations.

第三個組成部分與之相關，我稱之為產品可發現性，但它可以幫助客戶找到我們的產品。它將人工智慧引入我們的網站，使導航、搜尋和產品推薦現代化。

So the way to think about it is, in the short term, we're stabilizing the business, trying to change the trajectory, focus on the three things I mentioned is, okay, if your volume is declining, then your cost needs to change, and we're working on that. The OMS issue I think we are -- the way to think about it is it's a combination of two things. The systems performance with -- then once the customers were not receiving the products, they would call customer care, and we were not ready for those calls.

所以，我們應該這樣想：在短期內，我們要穩定業務，試圖改變軌跡，重點關注我提到的三件事：好吧，如果你的業務量下降，那麼你的成本就需要改變，我們正在努力做到這一點。我認為 OMS 問題是——思考它的方式是它是兩件事的結合。系統效能－一旦客戶沒有收到產品，他們就會打電話給客戶服務，而我們還沒準備好接聽這些電話。

We are quite confident that we solved all of the systems performance issues that we know of. Actually, the system today is performing better than before we implemented versus the previous system. And from a customer care perspective, we are building redundancies just in case something happens. So we are very confident about that. And then marketing, as I said, in the short term, is focusing on the variable contribution margin.

我們非常有信心解決了我們所知的所有系統效能問題。實際上，與我們實施之前的系統相比，今天的系統性能更好。從客戶服務的角度來看，我們正在建立冗餘機制，以防萬一。所以我們對此非常有信心。然後，正如我所說，短期內行銷的重點是可變貢獻利潤率。

Parallel to that, we are planting seeds and making targeted investments on the future growth, which, as I mentioned, is the product assortment value proposition, the customer flywheel and the product discoverability on our platforms. So it's a transition year followed with -- coupled with investments to drive future growth, Anthony.

同時，我們正在為未來的成長播下種子並進行有針對性的投資，正如我所提到的，這是產品分類價值主張、客戶飛輪和我們平台上的產品可發現性。因此，這是一個過渡年，隨之而來的是投資以推動未來的成長，安東尼。

Got it. And so I guess my last question before I pass it on to others. So as you look to execute your strategy, how do we think about CapEx spending for this year? It does sound like you are also looking to perhaps bring back some physical retail stores. I know a few years ago, you guys closed pretty much all of your Harry & David stores. I don't know if you would be looking to reconsider that decision. And -- but just maybe help us understand how do you guys think about CapEx spending as you look to execute this strategy here?

知道了。所以，在我把它傳遞給其他人之前，我想我的最後一個問題就是這個。那麼，當您考慮執行您的策略時，我們如何考慮今年的資本支出？聽起來您也許也在考慮恢復一些實體零售店。我知道幾年前，你們幾乎關閉了所有的 Harry & David 商店。我不知道您是否願意重新考慮這個決定。而且——但也許可以幫助我們了解你們在執行這項策略時如何看待資本支出？

So Anthony, this is James. So from a CapEx perspective, we had the big implementation of OMS last year. So right now, we're not giving guidance, but we believe CapEx will be slightly down this year from last year. But included in that is our investment in some of the physical retail locations. So that's already included in that. So we do have CapEx set aside for the expansion into some Harry & David and Things Remembered locations.

安東尼，這是詹姆斯。因此，從資本支出的角度來看，我們去年大規模實施了 OMS。因此，目前我們沒有給出指導，但我們相信今年的資本支出將比去年略有下降。但其中包括我們對一些實體零售店的投資。這已經包含在內了。因此，我們確實預留了資本支出，用於擴展到一些 Harry & David 和 Things Remembered 門市。

(Operator Instructions) Doug Lane, Water Tower Research.

（操作員指示）Doug Lane，水塔研究。

Staying on the retail stores, you did open that Long Island store earlier this year. Can you give us an update on what you've learned there and how that's going to impact your strategy going forward and maybe opening additional retail stores?

說到零售店，您今年早些時候確實開了那家家長島店。您能否向我們介紹一下您在那裡學到了什麼，以及這將如何影響您未來的策略以及開設更多的零售店？

So let me separate the question from two perspectives. Like number one, as I mentioned, I think in the midterm, we believe that expanding our channels is fundamental to our strategy, and that includes physical retail. This year, as you probably saw in the announcement, we are going to have three pop-up stores at Macy's, five in malls and for Harry & David and -- one for Things Remembered.

所以讓我從兩個角度來解釋這個問題。就像第一點，正如我所提到的，我認為從中期來看，我們認為擴大通路是我們策略的基礎，其中包括實體零售。今年，正如您可能在公告中看到的，我們將在梅西百貨開設三家快閃店，在購物中心開設五家，為 Harry & David 開設一家，為 Things Remembered 開設一家。

The way to think about those is we are experimenting and trying to find out what is the right assortment for those stores. The Huntington store combines, I would say, the best assortment we have within our brands. Harry & David goes beyond baskets into a lot of products that are of everyday consumption.

我們思考這些問題的方式是，我們正在進行實驗並試圖找出適合這些商店的正確商品組合。我想說，亨廷頓商店匯集了我們品牌中最好的商品種類。Harry & David 的產品不僅限於籃子，還涉及許多日常消費品。

And if you were to walk that store, you find those products there. And those products actually drive conversion when you get the traffic and drive transactions. That store, given our expectations, is doing quite well. Now keep in mind, it's a lower traffic store. It's not located in a shopping mall.

如果你走進那家商店，你會發現那裡有這些產品。當你獲得流量並推動交易時，這些產品實際上會推動轉換。正如我們的預期，那家商店的經營狀況相當不錯。現在請記住，這是一家客流量較低的商店。它不在購物中心內。

In general, you want to locate where traffic is located. But we are learning a lot from that store, and we are leveraging those learnings for our pop-up stores. If things go well, our intention is to continue expanding and not only exploring pop-up stores, but actually permanent physical stores. But as I said, next year is all about experimentation, we are learning and preparing for growth.

一般來說，您想定位流量所在的位置。但我們從那家商店學到了很多東西，我們正在利用這些經驗來開設我們的快閃店。如果一切進展順利，我們的目標是繼續擴張，不僅探索快閃店，而且還探索永久性實體店。但正如我所說，明年我們將進行全面實驗，我們正在學習並為成長做準備。

So the way I understand it then there could be two paths here as you expand beyond e-commerce. One is Harry and David and Things Remembered branded stores, whether they're stand-alone like in Long Island or whether they're in the mall? Or would you also pursue on a parallel track, permanent placement in Macy's and other department stores? Would you go to mass merchants? Just a little bit more granularity on where in retail you think the brand can go.

所以，按照我的理解，當你拓展電子商務以外的業務時，可能會有兩條路。一個是 Harry and David 和 Things Remembered 品牌商店，無論它們是像長島那樣的獨立商店還是在購物中心裡？或者您也想沿著平行的軌道，在梅西百貨和其他百貨公司尋求永久職位？你會去大眾商店嗎？您認為該品牌可以在零售領域取得哪些進展，請更詳細地說明。

I would say all of the above, and that's what we are experimenting. And I would go beyond physical retail into also digital, including marketplaces and on-demand delivery. The way we're thinking about it is wherever the customer is, we have products for them. We -- as I mentioned, it's -- I think beyond gifting, we're also focusing on self-consumption, and we have a lot of products for self-consumption.

我想說的是以上所有，這就是我們正在嘗試的。我將超越實體零售，進軍數位零售，包括市場和按需配送。我們的想法是，無論客戶在哪裡，我們都有適合他們的產品。正如我所提到的，我認為除了送禮之外，我們還關注自用，我們有很多自用產品。

So we're experimenting our way to grow. So all of the things you mentioned, Doug, are options. We are fact-based. We are data-driven. So whatever delivers the best performance, that's where we are going to invest our capital. I think number one priority for me and for the team is let's make sure that we drive profitable growth and the return on invested capital we provide to our shareholders, it's above their expectations.

所以我們正在嘗試自己的成長方式。所以，道格，你提到的所有事情都是選擇。我們以事實為依據。我們以數據為驅動。因此，只要能帶來最佳表現，我們就會向其投資。我認為我和團隊的首要任務是確保我們推動獲利成長，並且我們為股東提供的投資資本回報率超出他們的預期。

Your comment about self-consumption makes a lot of sense to me. I know that you are positioned as a gifting platform, but certainly, a lot of that product will be ripe for self-consumption. Do you have any data yet on what you think your current percentage of sales are that go to self-consumption versus gifting?

您關於自我消費的評論對我來說非常有道理。我知道你們的定位是一個禮品平台，但可以肯定的是，很多產品都適合自己消費。您是否有任何數據顯示，您認為目前的銷售額中，自用和送禮的比例是多少？

I would say it varies by brand. It's a lot higher on Harry & David, lower in Flowers and lower in Tmall. Honestly, though, part of this is self-inflicted. One of the things that merchants are working on, on 1-800-FLOWERS is to tailor the assortment for self-consumption, e.g. something as simple as selling flowers without the vase. If you're buying flowers for your house, you are not buying vases, you just want the flowers. Launching a subscription model, we're experimenting with all of these things.

我想說的是，它因品牌而異。在 Harry & David 上的價格高很多，在 Flowers 上的價格較低，在天貓上的價格也較低。但說實話，這部分是我自己造成的。商家在 1-800-FLOWERS 上進行的工作之一就是客製化供自用的產品，例如出售不含花瓶的鮮花。如果您要為家裡買鮮花，那麼您買的不是花瓶，您只是想要花。透過推出訂閱模式，我們正在嘗試所有這些事情。

But today, naturally, the products and the brands that we have acquired over the years that are sitting under the umbrella of Harry & David are tailored for self-consumption. We have cookies, we have coffee, we have chocolate. We're about to launch olive oil and vinegar. I mean we have a lot of things that you can find on your average retail store. And as I said also, we are planning to have our own stores. So that's what we are unlocking here. I think in the past, we had this approach of, oh, it's our brand and it needs to be sold on our website.

但如今，我們多年來收購的、隸屬於 Harry & David 旗下的產品和品牌自然都是為個人消費而設計的。我們有餅乾、有咖啡、有巧克力。我們即將推出橄欖油和醋。我的意思是，我們有很多東西你可以在普通零售店找到。正如我所說，我們計劃開設自己的商店。這就是我們在這裡要解開的謎團。我認為過去我們有這樣的做法，哦，這是我們的品牌，需要在我們的網站上銷售。

We're basically saying no, separate the brand from the product on our website. I'll give you an example, cookies. I can sell cookies on the Cheryl's brand. I can sell cookies under Harry & David. I can sell private label cookies. I can sell all of those on the Harry & David website. I can sell all of that on the 1-800-FLOWERS website. I can sell that on marketplaces. I can sell that on physical retail.

我們基本上說不，在我們的網站上將品牌與產品分開。我舉個例子，餅乾。我可以銷售 Cheryl 品牌的餅乾。我可以以 Harry & David 的名義賣餅乾。我可以出售自有品牌餅乾。我可以在 Harry & David 網站上出售所有這些。我可以在 1-800-FLOWERS 網站上出售所有這些。我可以在市場上賣它。我可以在實體零售店出售它。

The sky is the limit, and we experiment -- we're testing our way to find out what drives the most profitable growth for the company in the short term.

天空是極限，我們不斷嘗試——我們正在測試我們的方法，以找出在短期內推動公司最有利可圖的成長的因素。

With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Adolfo Villagomez for any closing remarks.

如果沒有其他問題，我們的問答環節就結束了。我想將會議交還給 Adolfo Villagomez 並請他作最後發言。

Thank you all once again for taking the time to join us on today's call and for your continued support of 1-800-FLOWERS.COM. I am very excited to lead this company during such a transformational period in its history, and I look forward to keeping you updated on our progress in the quarters ahead. Thank you.

再次感謝各位抽出時間參加今天的電話會議，並感謝大家一直以來對1-800-FLOWERS.COM的支持。我非常高興能夠在公司歷史上如此轉型的時期領導公司，並期待在未來幾季向大家通報我們的進展。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。