10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-26841

1-800-FLOWERS.COM, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	11-3117311 (I.R.S. Employer Identification No.)
Two Jericho Plaza, Suite 200, Jericho, NY 11753 (Address of principal executive offices) (Zip code)	(516) 237-6000 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A common stock	FLWS	The Nasdaq Stock Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15 (d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

☐ Large accelerated filer	☒ Accelerated filer
☐ Non-accelerated filer	☐ Smaller reporting company
	☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The aggregate market value of the voting stock held by non-affiliates of the registrant, computed by reference to the closing price as of the last business day of the registrant’s most recently completed second fiscal quarter, December 31, 2023, was approximately $277,351,000. The registrant has no non-voting common stock.

37,152,140

(Number of shares of class A common stock outstanding as of August 30, 2024)

27,068,221

(Number of shares of class B common stock outstanding as of August 30, 2024)

DOCUMENTS INCORPORATED BY REFERENCE:

Portions of the Registrant’s Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders (the Definitive Proxy Statement) are incorporated by reference into Part III of this Report.

1-800-FLOWERS.COM, INC.

FORM 10-K

For the fiscal year ended June 30, 2024

TABLE OF CONTENTS

Part I.
Item 1.	Business	1
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	17
Item 1C.	Cybersecurity	18
Item 2.	Properties	19
Item 3.	Legal Proceedings	19
Item 4.	Mine Safety Disclosures	19
Part II.
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	20
Item 6.	Reserved	22
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	39
Item 8.	Financial Statements and Supplementary Data	39
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	39
Item 9A.	Controls and Procedures	39
Item 9B.	Other Information	41
Item 9C.	Disclosure Regarding Foreign Jurisdictions That Prevent Inspections	41
Part III.
Item 10.	Directors, Executive Officers and Corporate Governance	41
Item 11.	Executive Compensation	41
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	41
Item 13.	Certain Relationships and Related Transactions, and Director Independence	41
Item 14.	Principal Accounting Fees and Services	41
Part IV.
Item 15.	Exhibits and Financial Statement Schedules	42
Item 16.	Form 10-K Summary	42
Signatures		43

PART I

Item 1. BUSINESS

The Company

1-800-FLOWERS.COM, Inc. and its subsidiaries (collectively, the “Company”) is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Scharffen Berger®, and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, the Company strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad range of products and services designed to help its members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital on demand floral, culinary and other experiences to guests across the country; and Card Isle®, an e-commerce greeting card service.

Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

References in this Annual Report on Form 10-K to “1-800-FLOWERS.COM” and the “Company” refer to 1-800-FLOWERS.COM, Inc. and its subsidiaries. The Company’s principal offices are located at Two Jericho Plaza, Suite 200, Jericho, NY 11753 and its telephone number at that location is (516) 237-6000.

Narrative Description of Business

The Origins of 1-800-FLOWERS.COM

The Company’s operations began in 1976 when James F. McCann, the Company’s founder and current Executive Chairman of the Board of Directors and Chief Executive Officer, acquired a single retail florist in New York City, which he subsequently expanded to a 14-store chain. Thereafter, the Company modified its business strategy to take advantage of the rapid emergence of toll-free calling. The Company acquired the right to use the toll-free telephone number 1-800-FLOWERS, adopted it as its corporate identity and began to aggressively build a national brand around it.

The Company’s Strategy

The Company’s objective is to be the leading authority on thoughtful gifting, to serve an expanding range of our customers’ celebratory needs, thereby helping our customers express themselves and connect with the important people in their lives. The Company will continue to build on the trusted relationships with our customers by providing them with ease of access, tasteful and appropriate gifts, and superior service. By engaging with our customers, we help to inspire more human expression and connection – sentiments that are more important than ever in the current environment.

The Company generates more than $1.8 billion in revenue, operating in a total addressable market of ~ $130 billion, with growing, market leading positions in Gourmet Food, Floral and Personalized Gifts.

The Company believes that 1-800-FLOWERS.COM® is one of the most recognized brands in the floral and gift industries. The strength of its brand has enabled the Company to extend its product offerings beyond the floral category into complementary products, which include gourmet popcorn, cookies and related baked and snack food products, premium chocolate and confections, wine gifts, gourmet gift baskets, fruit bouquet arrangements, and gift-quality fruit baskets, dipped berries, steaks, chops and prepared meals, as well as an extensive selection of personalized products. On October 27, 2021, the Company acquired Vital Choice Seafood LLC (“Vital Choice”), a purveyor of wild-caught seafood and sustainably farmed shellfish, pastured proteins, and organic foods. On December 31, 2021, the Company acquired Alice’s Table® to supplement our product portfolio with lifestyle offerings, including fully digital on demand floral, culinary and other experiences to guests across the country. On January 10, 2023, the Company completed its acquisition of certain assets of the Things Remembered® brand, a complete online gifting and personalization destination renowned for its men’s and women’s jewelry, drinkware, home décor, business gifts and awards, and wedding essentials, which was fully integrated into the Personalization Mall® brand.  On April 3, 2024, the Company completed its acquisition of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands. On July 1, 2024, the Company acquired Scharffen Berger®, a manufacturer of giftable premium chocolate and specialty treats, expanding the Company's product offerings in the Gourmet Foods & Gift Basket segment.  This extended line of gift offerings helps our customers with their celebratory occasions and will enable the Company to increase the purchase frequency and average order value for existing customers who have come to trust the 1-800-FLOWERS.COM brand, as well as continue to attract new customers.

The Company’s consolidated customer database and multi-brand website is designed to dynamically engage our customers, further enhancing the Company’s position as a leading, one-stop destination for our customers’ gifting and celebratory needs. The Company is focused on deepening relationships with its customers through content and community and are focused on inspiring our customers to give more and to build better and more meaningful relationships. We have a large customer file, with increasing frequency from existing customers, including 1.1 million Celebrations Passport members who, along with our multi-brand customers, represent our best customer cohorts in terms of frequency, retention and average spend, and thus customer lifetime value. Celebrations Passport and multi-brand customers frequency is 2x to 3x other customers. Multi-brand customers and Celebrations Passport members represent approximately 20% of customers and approximately 40% of revenue.

As part of the Company’s continuing effort to serve the thoughtful gifting needs of our customers, and leverage its business platform, the Company continues to execute its vision to build a “Celebratory Ecosystem”, including a collection of premium gifting brands, and an increasing suite of products and services designed to help our customers deliver smiles to the important people in their lives.

The platform that the Company has built allows it to expand rapidly into new product categories using a “marketplace” concept, providing its customers with a wider selection of solutions to help them express, connect and celebrate for all occasions and recipients – including themselves.

As such, the Company has transformed from a floral-based specialty retailer with multiple-brand add-ons into an e-commerce platform built for growth. We have created a highly scalable platform that enables solid top and bottom-line growth over the long term and expanding market-share positions. In addition, the Company has been successful in identifying, executing and integrating accretive acquisitions supported by a strong balance sheet. 

A summary of the Company’s significant brands and/or businesses follows:

1

CONSUMER FLORAL & GIFTS SEGMENT
	Direct-to-consumer, multi-channel provider of fresh flowers, plants, fruit and gift basket products, balloons, candles, keepsake gifts, jewelry and plush stuffed animals.
	Direct-to-consumer, multi-channel provider of artistically carved fresh fruit arrangements.
	Franchisor and operator of retail flower shops, acquired in August 2011.
	Direct-to-consumer provider of fresh flowers, plants, fruits and gift baskets.
	E-commerce provider of personalized gifts and keepsakes, acquired in August 2020.
	E-commerce provider of personalized gifts and keepsakes, which operations are integrated within the PersonalizationMall.com brand, acquired in January 2023.
	Provider of lifestyle offerings, including fully digital on demand floral, culinary and other experiences to guests across the country, acquired in December 2021.
BLOOMNET SEGMENT
	Provider of products and services to the professional florist.
	Wholesale merchandiser and marketer of floral industry and related products, acquired in July 2008.
	Provider of digital and physical greeting cards to sister brands, as well as independent florist and other wholesale customers, acquired in April 2024.

2

GOURMET FOODS & GIFT BASKETS SEGMENT
	Multi-channel specialty retailer and producer of premium gift quality fruit, gourmet food products and other gifts marketed under the Harry & David® and Cushman’s® brands, acquired in September 2014.
	Manufacturer and retailer of indulgent bakery gifts, including super-thick English muffins, toppings, and desserts, acquired in September 2014 in conjunction with the purchase of Harry & David.

Multi-channel retailer and manufacturer of small batch gourmet buttery caramel and chocolate covered popcorn, acquired in September 2014 in conjunction with the purchase of Harry & David.

	E-commerce provider of wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods, and marine-sourced nutritional supplements, acquired in October 2021.
	Manufacturer of giftable premium popcorn and specialty treats, acquired in May 2002.
	Multichannel retailer and baker of premium cookies, baked gifts, and related products, acquired in March 2005, including Mrs. Beasley’s®, a baker of cakes, muffins and gourmet gift baskets, acquired in March 2011.
	E-commerce retailer of gift baskets and towers.
	Designer, assembler and distributor of wholesale gift baskets, gourmet food towers and gift sets, acquired in April 2008.
	E-commerce retailer of artisan chocolates and confections.
	E-commerce retailer of dipped berries and other specialty treats, acquired in August 2019.
	Manufacturer of giftable premium chocolate and specialty treats, acquired in July 2024.

Although the Company’s family of brands maintain their own sense of identity, the Company has taken a holistic approach towards operating its brand portfolio. A key feature of this approach is that the Company proactively shares best practices across its functional areas, through centralized operational centers of excellence focused on identifying initiatives designed to enhance top and bottom-line growth opportunities.

3

The Company’s Products and Service Offerings

The Company offers a wide range of products including fresh-cut flowers, floral and fruit arrangements and plants, gifts, greeting cards, personalized products, dipped berries, popcorn, gourmet foods and gift baskets, cookies, chocolates, candy, wine, and gift-quality fruit. In order to maximize sales opportunities, products are not exclusive to certain brands and may be sold across business categories. The Company’s differentiated and value-added product offerings create the opportunity to have a relationship with customers who purchase items not only for gift-giving occasions but also for everyday consumption. The Company’s product development team works closely with its production team to select and design its floral, gourmet foods and gift baskets, as well as other gift-related products that accommodate our customers’ needs to celebrate a special occasion or convey a sentiment. As part of this continuing effort, the Company intends to continue to develop differentiated products and signature collections that customers have embraced and come to expect.

The Company’s net revenues from international sources were not material during fiscal years 2024, 2023 and 2022.

Flowers, Plants, and Personalized Gifts. The Company’s flagship 1-800-Flowers.com brand offers fresh-cut flowers and floral and fruit arrangements for all occasions and holidays, available for same-day delivery. The Company provides its customers with a curated choice of florist designed products, including traditional floral and gift offerings, and the Company’s line of fruit arrangements, under the Fruit Bouquets brand, and flowers delivered fresh from the farm. The Company also offers a wide variety of popular plants to brighten the home and/or office, and accent gardens and landscapes. With the acquisition of Alice’s Table, the Company also provides lifestyle offerings, including fully digital on demand floral, culinary and other experiences to guests across the country.  In addition, through its PersonalizationMall brand, the Company offers a wide assortment of products using sublimation, embroidery, digital printing, engraving, and sandblasting to provide a unique, personalized experience to our customers. The Company expanded its offering of personalized products with the acquisition of the Things Remembered brand, a complete online gifting and personalization destination renowned for its men’s and women’s jewelry, drinkware, home décor, business gifts and awards, and wedding essentials.

Gourmet Foods & Gift Baskets. Harry & David is a vertically integrated, multi-channel specialty retailer and producer of branded premium gift-quality fruit, food products, land and sea-based proteins, and gifts marketed under the Harry & David, Wolferman’s Bakery, Vital Choice, Cushman’s, Moose Munch and Scharffen Berger brands. The Company manufactures premium cookies and baked gift items under the Cheryl’s Cookies and Mrs. Beasley’s brands, which are delivered in beautiful and innovative gift boxes and containers, providing customers with a variety of assortments from which to choose. The Popcorn Factory brand pops premium popcorn and specialty snack products. The 1-800-BASKETS.COM brand features a collection of gourmet gift baskets and related products confected by DesignPac, as well as through third parties. Simply Chocolate offers artisan chocolates and confections. Many of the Company’s gourmet products are packaged in seasonal, occasion specific or decorative tins, fitting the “giftable” requirement of individual customers, while also adding the capability to customize the tins with corporate logos and other personalized features for the Company’s corporate customers’ gifting needs.  On July 1, 2024, the Company completed its acquisition of Scharffen Berger, a manufacturer of giftable premium chocolate and specialty treats.

BloomNet®. The Company’s BloomNet business provides its members with products and services, including: (i) settlement processing, consisting of the settlement of orders between referring florists (including the 1-800-Flowers.com brand) and fulfilling florists, (ii) advertising, in the form of member directories, including the industry’s first on-line directory, (iii) access services, by which BloomNet florists are able to refer and fulfill orders, using Bloomlink®, the Company’s proprietary Internet-based system, (iv) other products and services, including web hosting, marketing, designer education and point of sale systems, and (v) wholesale products, which consist of branded and non-branded floral supplies, enabling member florists to reduce their costs through 1-800-Flowers.com purchasing leverage, while also ensuring that member florists will be able to fulfill 1-800-Flowers.com brand orders based on recipe specifications. While maintaining industry-high quality standards for its 1-800-Flowers.com brand customers, the Company offers florists a compelling value proposition, offering products and services that its florists need to grow their business and to enhance profitability. On April 3, 2024, the Company completed its acquisition of Card Isle, an e-commerce greeting card service, expanding the Company’s presence in the greeting card category across its brand portfolio.

Marketing and Promotion

The Company’s marketing and promotional strategy is designed to strengthen the 1-800-FLOWERS.COM brands, engage with its customers, increase customer acquisition, build customer loyalty, encourage repeat purchases and drive long-term growth. The Company’s goal is to create a celebratory ecosystem that makes its brands synonymous with thoughtful gifting and to help our customers “send smiles” every day. To do this, the Company intends to invest in its brands and acquire new customers through the use of selective on and off-line media, direct marketing, public relations, social media and strategic relationships, while cost-effectively capitalizing on the Company’s large and loyal customer base. The Company’s focus is to create marketing messaging that is more relevant to the customer, to engage with our customers in a two-way dialog and to focus on the customer experience. It plans to improve customer purchase frequency via product exposure through its multi-brand portal, and Celebrations Passport® loyalty program, as well as continually investing and innovating how and where it engages with its customers.

4

With strong appeal and a recognizable brand, 1-800-FLOWERS.COM, Inc. continues to find new and innovative ways to connect with its community of customers, inspiring them to give more, connect more, and build more and better relationships. In 2023, the Company was featured in the Wall Street Journal's Economics Of series, which showcased its family of brands and offerings to a national audience. The Company has also expanded its presence on both local and national platforms, with multiple inclusions on Good Morning America, the Today Show, Telemundo - Hoy Dia!, and more. A commitment to corporate citizenship and social responsibility remains at the core of the Company, earning recognition and awards for its corporate citizenship efforts, including partnerships with organizations such as Smile Farms, which provides job opportunities for adults with developmental disabilities. In addition, collaboration with the Point Foundation to support the LGBTQ+ community helped the Company earn a high score on the 2023 Corporate Equality Index by the Human Rights Campaign. In 2024, 1-800-FLOWERS.COM, Inc. was named among America's Most Trustworthy Companies by Newsweek, reflecting its dedication to its customers and communities.

Technology Infrastructure

The Company believes it has been and continues to be a leader in implementing new technologies to give its customers the best possible shopping experience, whether online or over the telephone. Orders are transmitted directly from the Company’s secure websites, or with the assistance of a gift advisor, into our internally developed transaction processing system, which captures the required customer and recipient information. The system then routes the order to the appropriate distribution center or, for florist fulfilled or drop-shipped items, selects a florist or vendor to fulfill the customer’s order and electronically refers the necessary information using BloomLink, the Company’s proprietary Internet-based system. The Company’s gift advisors have electronic access to this system, enabling them to assist in order fulfillment and subsequently track other customer and/or order information.

Fulfillment and Manufacturing Operations

The Company’s customers primarily place their orders either online or over the telephone. The Company’s hybrid fulfillment system, which enables the Company to offer same-day, next-day and any-day delivery, combines the use of BloomNet (comprised of independent florists operating retail flower shops and franchise florist shops) with Company distribution centers and vendors who ship directly to the Company’s customers. While providing a significant competitive advantage in terms of delivery options, the Company’s fulfillment system also has the added benefit of reducing the Company’s capital investments in inventory and infrastructure. The Company’s products are backed by a 100% smile guarantee, and the Company’s business is not dependent on any single third-party supplier.

Fulfillment and manufacturing of products is as follows:

Flowers, Plants, and Personalized Gifts. A majority of the Company’s floral orders are fulfilled by one of the Company’s BloomNet members, allowing the Company to deliver its floral and fruit bouquet products on a same-day or next-day basis to ensure freshness and to meet its customers’ need for immediate gifting. In addition to these florist-designed products, the Company also offers fresh cut floral arrangements in a wide assortment of combinations, themes and designer bouquets and collections through its direct ship program, fresh from the farm. Also, the Company offers a broad selection of personalized gifts and keepsakes that are manufactured utilizing same-day/next-day capabilities, and distributed from its Bolingbrook, IL facility.

Gourmet Foods & Gift Baskets. The Company offers a wide array of premium brand signature baked products, chocolate, confections, gift baskets, gourmet popcorn, dipped berries, giftable fruit towers and baskets, and related products through its Gourmet Foods & Gift Baskets’ brands. The Company’s Cheryl’s cookies and baked gifts are manufactured primarily in its baking facility in Westerville, Ohio, while The Popcorn Factory and Moose Munch premium snack products are popped in Medford, Oregon and Lake Forest, Illinois. Harry & David products are grown and manufactured primarily from its facilities in Medford, Oregon, supplemented by specialty products that are sourced across the U.S. and the world. Scharffen Berger products are manufactured in Ashland, Oregon. Gift basket confection and fulfillment for both wholesale and 1-800-Baskets.com is handled by DesignPac, located in Melrose Park, Illinois. Our products are distributed from a combination of Company-owned and leased distribution facilities across the country, which are shared by our brands in order to reduce both transit time to customer and overall logistics costs. Dipped berries and other specialty treats for our Shari’s Berries brand are manufactured and fulfilled through our network of drop ship vendors.

5

Sources and Availability of Raw Materials

The Company’s raw materials consist of ingredients for manufactured products (including various commodities such as sugar, flour, cocoa, eggs, fruit and flowers), packaging supplies, and other supplies used in the manufacturing and transportation processes (such as fuel, natural gas and derivative products). Except for certain crops which are grown in our Harry & David orchards, raw materials used by the Company are purchased from third parties, some of whom are single-source suppliers. The prices we pay, and the availability of these materials and other commodities are subject to fluctuation. When prices for these items change, we may or may not pass the change to our customers. We utilize a global supply chain that includes both U.S. and international suppliers. Our suppliers are subject to standards of conduct, including requirements that they comply with local labor laws, local worker safety laws and other applicable laws. Our ability to acquire from our suppliers the assortment and volume we need to meet customer demand, to receive those materials timely through our supply chain and to produce, manufacture and distribute those products determines, in part, our ability to grow the business, and the appeal of our merchandise assortment we offer to our customers.

Seasonality

The Company’s quarterly results may experience seasonal fluctuations. Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, historically generated over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother’s Day, Valentine’s Day, Easter and Administrative Professionals Week, revenues also rise during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter. During fiscal 2024, our fiscal second quarter revenues represented approximately 45% of annual revenues, while our first, third and fourth quarters generated 14%, 21%, and 20% of annual revenues, respectively.

In preparation for the Company’s second quarter holiday season, the Company significantly increases its inventories. This seasonal build has traditionally been financed by cash flows from operations, supplemented by a bank line of credit, which peaks in November. The Company has historically repaid all revolving bank lines of credit with cash generated from operations, prior to the end of the Company’s fiscal second quarter.

Competition

The popularity and convenience of e-commerce shopping has continued to give rise to established businesses on the Internet. In addition to selling their products over the Internet, many of these retailers sell their products through a combination of channels by maintaining a website, a toll-free phone number and physical locations. Additionally, several of these merchants offer an expanding variety of products and some are attracting an increasing number of customers. Certain mass merchants have expanded their offerings to include competing products and may continue to do so in the future. These businesses, as well as other potential competitors, may be able to:

● undertake more extensive marketing campaigns for their brands and services;

● adopt more aggressive pricing policies; and

● make more attractive offers to potential employees, distributors and retailers.

In addition, the Company faces intense competition in each of its individual product categories. In the floral industry, there are various providers of floral products, none of which is dominant in the industry. The Company’s competitors include:

● retail floral shops, some of which maintain toll-free telephone numbers, websites, and mobile applications;

● online floral retailers and social media platform retailers, as well as retailers offering substitute gift products;

● catalog companies that offer floral products;

● floral telemarketers and wire services; and

● supermarkets, mass merchants and specialty retailers with floral departments.

Similarly, the plant, gift basket and gourmet foods categories are highly competitive. Each of these categories encompasses a wide range of products, is highly fragmented and is served by a large number of companies, none of which is dominant. Products in these categories may be purchased from a number of outlets, including mass merchants, telemarketers, retail specialty shops, online retailers and mail-order catalogs.

6

The Company believes the strength of its brands, product selection, customer relationships, technology infrastructure and fulfillment capabilities position it to compete effectively against its current and potential competitors in each of its product categories. However, increased competition could result in:

● price reductions, decreased revenues and lower profit margins;

● loss of market share; and

● increased marketing expenditures.

These and other competitive factors may adversely impact the Company’s business and results of operations.

Government Regulation and Legal Uncertainties

The Internet continues to evolve and there are laws and regulations directly applicable to e-commerce. Legislatures are also considering an increasing number of laws and regulations pertaining to the Internet, including laws and regulations addressing:

● user privacy;

● pricing;

● content;

● connectivity;

● intellectual property;

● distribution;

● taxation and tariffs;

● liabilities;

● antitrust; and

● characteristics and quality of products and services.

Further, the growth and development of the market for online services may prompt more stringent consumer protection laws that may impose additional burdens on those companies conducting business online. The adoption of any additional laws or regulations may impair the growth of the Internet or commercial online services. This could decrease the demand for the Company’s services and increase its cost of doing business. Moreover, the applicability to the Internet of existing laws regarding issues like property ownership, taxes, libel and personal privacy is uncertain. Any new legislation or regulation that has an adverse impact on the Internet or the application of existing laws and regulations to the Internet could have a material adverse effect on the Company’s business, financial condition and results of operations.

States or foreign countries might attempt to regulate the Company’s business or levy additional sales or other taxes relating to its activities. Because the Company’s products and services are available over the Internet anywhere in the world, multiple jurisdictions may claim that the Company is required to do business as a foreign corporation in one or more of those jurisdictions. Failure to qualify as a foreign corporation in a jurisdiction where the Company is required to do so could subject it to taxes and penalties. States or foreign governments may charge the Company with violations of local laws.

Intellectual Property

The Company regards its service marks, trademarks, trade secrets, domain names and similar intellectual property as critical to its success. The Company has applied for or received trademark and/or service mark registration for, among others, “1-800-FLOWERS.COM”, “1-800-FLOWERS”, “1-800-Baskets.com”, “FruitBouquets.com”, “BloomNet”, "Card Isle", “GreatFood.com”, “The Popcorn Factory”, “Cheryl’s Cookies”, “Mrs. Beasley’s”, “Celebrations Passport”, “Flowerama”, “DesignPac”, “Harry & David”, “Wolferman’s Bakery”, “Moose Munch”, Cushman’s”, “Simply Chocolate”, “Personalization Universe”, “PersonalizationMall”, “Things Remembered”, “Shari’s Berries”, "Scharffen Berger", “SmartGift”, “Vital Choice” and “Alice’s Table”. The Company also has rights to numerous domain names, including: www.1800flowers.com, www.cardisle.com, www.800flowers.com, www.1800baskets.com, www.flowers.com, www.personalizationuniverse.com, www.personalizationmall.com, www.thingsremembered.com, www.plants.com, www.florists.com, www.greatfoods.com, www.cheryls.com, www.celebrations.com, www.flowerama.com, www.designpac.com, www.simplychocolate.com, www.mybloomnet.net, www.napcoimports.com, www.thepopcornfactory.com, www.harryanddavid.com, www.wolfermans.com, www.vitalchoice.com, www.alicestable.com, www.berries.com, www.sharisberries.com, www.scharffenberger.com, and www.smartgift.com. In addition, the Company owns a number of international trademarks and/or service marks. The Company has also developed transaction processing and operating systems as well as marketing data, and customer and recipient information databases.

7

The Company relies on trademark, unfair competition and copyright law, trade secret protection and contracts such as confidentiality and license agreements with its employees, customers, vendors and others to protect its proprietary rights. Despite the Company’s precautions, it may be possible for competitors to obtain and/or use the Company’s proprietary information without authorization or to develop technologies similar to the Company’s and independently create a similarly functioning infrastructure. Furthermore, the protection of proprietary rights in Internet-related industries is uncertain and still evolving. The laws of some foreign countries do not protect proprietary rights to the same extent as do the laws of the United States. The Company’s means of protecting its proprietary rights in the United States or abroad may not be adequate.

Third parties have in the past infringed or misappropriated the Company’s intellectual property or similar proprietary rights. The Company believes infringements and misappropriations will continue to occur in the future. The Company intends to guard against infringement and misappropriation. However, the Company cannot guarantee it will be able to enforce its rights and enjoin the alleged infringers from their use of confusingly similar trademarks, service marks, telephone numbers and domain names.

In addition, third parties may assert infringement claims against the Company. The Company cannot be certain that its technologies or its products and services do not infringe valid patents, trademarks, copyrights or other proprietary rights held by third parties. The Company may be subject to legal proceedings and claims from time to time relating to its intellectual property and the intellectual property of others in the ordinary course of its business. Intellectual property litigation is expensive and time-consuming and could divert management resources away from running the Company’s business.

Human Capital

Employees. We focus on attracting, developing and retaining skilled, diverse talent, including recruiting from among the universities across the markets in which we compete and are generally able to select top talent. We focus on developing our employees by providing a variety of job experiences, training programs and skill development opportunities. As of June 30, 2024, the Company had approximately 4,000 full and part-time employees, all located in the United States. During peak periods, the Company substantially increases the number of customer service, manufacturing, and fulfillment personnel. The Company’s employees are not represented under collective bargaining agreements and the Company considers its relations with its employees to be good. Our employees are a key source of our competitive advantage and their actions, guided by our Code of Ethics, are critical to the long-term success of our business.

Workforce Diversity. As a company, we are committed to building an inclusive and equitable culture that embraces and celebrates our associates’ diverse backgrounds and unique life experiences.

Compensation and Benefits. The Company aims to attract and retain a talented workforce by offering competitive compensation and benefits, strong career development and a respectful and inclusive culture that provides equal opportunity for all. We believe our base wages and salaries, which we review annually, are fair and competitive with the external labor markets in which our associates work. We encourage and reward employees based upon the achievement of financial and other key performance metrics, which strengthens the connection between pay and performance. We also grant equity compensation awards that vest over time through our long-term incentive plan to eligible associates to align such associates’ incentives with the Company’s long-term strategic objectives and the interests of our stockholders. We also offer competitive benefit programs, in line with local practices with flexibility to accommodate the needs of a diverse workforce, including paid vacation and holidays, family leave, disability insurance, life insurance, healthcare, and a 401(k) plan with a company match.

Health, Safety and Wellness. From a workplace safety standpoint, we focus on training, awareness, behavioral-based work observation practices, and culture in our continuous effort to reduce workplace injuries and accidents. We are continually focused on the safety of our associates and have a strong emphasis on identifying and addressing the safety risks to and concerns of our associates.

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Item 1A. Risk Factors

Cautionary Statements Under the Private Securities Litigation Reform Act of 1995

Our disclosures and analysis in this Form 10-K contain some forward-looking statements that set forth anticipated results based on management’s plans and assumptions. From time to time, we also provide forward-looking statements in other statements we release to the public as well as oral forward-looking statements. Such statements give our current expectations or forecasts of future events; they do not relate strictly to historical or current facts. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions; the effectiveness of our marketing programs; the performance of our existing products and services; our ability to attract and retain customers and expand our customer base; our ability to enter into or renew online marketing agreements; our ability to respond to competitive pressures; expenses, including shipping costs and the costs of marketing our current and future products and services; the outcome of contingencies, including legal proceedings in the normal course of business; and our ability to integrate acquisitions.

We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans and assumptions. Achievement of future results is subject to risk, uncertainties and potentially inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward looking statements.

We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our 10-Q and 8-K reports to the United States Securities and Exchange Commission (“SEC”). Also note we provide the following cautionary discussion of risks, uncertainties and possibly inaccurate assumptions relevant to our business. These are factors that, individually or in the aggregate, we think could cause our actual results to differ materially from expected and historical results. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995.

Macroeconomic Conditions and Related Risk Factors

The financial and credit markets and consumer sentiment have and will experience significant volatility, which may have an adverse effect on our customers’ spending patterns and in turn our business, financial condition and results of operations. The Company’s business and operating results are subject to economic conditions and their impact on consumer discretionary spending. Factors that may negatively impact consumer spending include high levels of unemployment, higher consumer debt levels, reductions in net worth, reductions in disposable income levels, declines in asset values, and related market uncertainty; home foreclosures and reductions in home values; fluctuating interest rates and credit availability; fluctuating fuel and other energy costs; fluctuating commodity prices; and general uncertainty regarding the overall future political and economic environment. Consumer spending patterns are difficult to predict and are sensitive to the general economic climate, the consumer’s level of disposable income, consumer debt, and overall consumer confidence. In the recent past, such factors have impacted and may continue to impact our business in a number of ways. Included among these current and potential future negative impacts are reduced demand and lower prices for our products and services. Adverse economic changes could reduce consumer confidence and could thereby affect our operating results. In challenging and uncertain economic environments, including the aftermath of the COVID-19 pandemic, and the geopolitical climate, we cannot predict when macroeconomic conditions uncertainty may arise and whether such circumstances could impact the Company.

The impact of the COVID-19 pandemic has created significant uncertainty for our business, financial condition and results of operations and for the prices of our publicly traded securities. The extent of the continuing impact of the COVID-19 pandemic on our business and financial results will depend on numerous evolving factors that we are not able to accurately predict and which will vary by market, including global economic conditions after the pandemic, governmental actions that have been taken, or may be taken in the future, in response to the pandemic, and changes in consumer behavior following the pandemic.

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Although our business experienced positive growth in our revenues and customer file during much of the COVID-19 pandemic, when many consumers shifted to online shopping, most pandemic-era restrictions have since been lifted, and it is difficult to predict what lasting effects the pandemic and resulting macroeconomic patterns will have on consumer spending patterns and e-commerce generally. We may fail to achieve our previous rate of growth or be unsuccessful in maintaining some or all of the new customers we acquired during the pandemic, which could reduce demand for our products. Any reduced demand for our products or change in customers' purchasing and consumption patterns, as well as continued economic uncertainty, can adversely affect our customers’ and business partners’ financial condition, resulting in an inability to pay for our products, reduced or canceled orders of our products, closing of florist or franchise locations, stores, or our business partners’ inability to supply us with ingredients or other items necessary for us to make, manufacture, distribute or sell our products. Such adverse changes in our customers’ or business partners’ financial condition may also result in our recording charges for our inability to recover or collect any accounts receivable, owned or leased assets, or prepaid expenses.

Increased shipping costs and supply chain disruptions may adversely affect sales of the Company’s products. Many of the Company's products are delivered to customers either directly from the manufacturer or from the Company’s fulfillment centers. The Company has established relationships with Federal Express and other common carriers for the delivery of these products. If these carriers continue to increase the prices they charge to ship the Company’s goods, and if the Company is forced to pass these costs on to its customers, or if carrier capacity becomes constrained, due to strikes or otherwise, the Company’s sales could be negatively impacted. In addition, ocean container availability and cost, as well as port and shipping route disruptions could impact the Company’s ability to deliver products on a timely basis to our customers and adversely affect its customer relationships, revenues and earnings.

We are dependent on international vendors for our supply of flowers, as well as certain components and products, exposing us to significant regulatory, global economic, taxation, political instability and other risks, which could adversely impact our financial results.

The availability and price of flowers, as well as certain components and products that we rely on to manufacture and sell our products could be adversely affected by a number of factors affecting international locations, including:

● import duties and quotas;

● agricultural limitations and restrictions to manage pests and disease;

● changes in trading status;

● economic uncertainties and currency fluctuations;

● severe weather;

● work stoppages;

● foreign government regulations and political unrest; and

● trade restrictions, including United States retaliation against foreign trade practices.

The U.S. administration has instituted or proposed changes in trade policies that include the negotiation or termination of trade agreements, the imposition of higher tariffs on imports into the U.S., economic sanctions on individuals, corporations or countries, and other government regulations affecting trade between the U.S. and other countries where we conduct business. As a result, there may be greater restrictions and economic disincentives on international trade and such changes have the potential to adversely impact the U.S. economy, our industry and the demand for our products. In addition, it may be time-consuming and expensive for us to alter our business operations in order to adapt to or comply with any such changes, and as a result, such changes could have a material adverse effect on our business, financial condition and results of operations.

If the supply of flowers for sale becomes limited, the price of flowers could rise or flowers may be unavailable and the Company’s revenues and gross margins could decline. A variety of factors affect the supply of flowers in the United States and the price of the Company’s floral products. If the supply of flowers available for sale is limited due to weather conditions, farm closures, economic conditions, political conditions in supplier locations, or other factors, prices for flowers could rise and as a result customer demand for the Company’s floral products may be reduced, causing revenues and gross margins to decline. Alternatively, the Company may not be able to obtain high quality flowers in an amount sufficient to meet customer demand. Even if available, flowers from alternative sources may be of lesser quality and/or may be more expensive than those currently offered by the Company.

Most of the flowers sold in the United States are grown by farmers located abroad, primarily in Colombia, Ecuador and Holland, and the Company expects that this will continue in the future.

The Company's operating results may suffer due to economic, political and social unrest or disturbances. Like other American businesses, the Company is unable to predict what long-term effect acts of terrorism, war, or similar unforeseen events may have on its business. The Company’s results of operations and financial condition could be adversely impacted if such events cause an economic slowdown in the United States, negatively impact the supply chain, increase the cost of key components for our gifts, or have other negative effects that cannot now be anticipated.

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Business and Operational Risk Factors

The Company’s operating results may fluctuate, and this fluctuation could cause financial results to be below expectations. The Company’s operating results may fluctuate from period to period for a number of reasons. In budgeting the Company’s operating expenses for the foreseeable future, the Company makes assumptions regarding revenue trends; however, some of the Company’s operating expenses are fixed in the short term. Sales of the Company’s products are seasonal, concentrated in the fourth calendar quarter, due to the Thanksgiving and Christmas-time holidays, and the second calendar quarter, due to Mother’s Day and Administrative Professionals’ Week. In anticipation of increased sales activity during these periods, the Company hires a significant number of temporary employees to supplement its permanent staff and the Company increases its inventory levels. If revenues during these periods do not meet the Company’s expectations, it may not generate sufficient revenue to offset these increased costs and its operating results may suffer.

The Company’s quarterly operating results may significantly fluctuate and you should not rely on them as an indication of its future results. The Company’s future revenues and results of operations may significantly fluctuate due to a combination of factors, many of which are outside of management’s control. The most important of these factors include:

● seasonality;

● the retail economy;

● the timing and effectiveness of marketing programs;

● the timing of the introduction of new products and services;

● the Company’s ability to find and maintain reliable sources for certain of its products;

● the impact of severe weather or natural disasters on consumer demand;

● the timing and effectiveness of capital expenditures;

● the Company’s ability to enter into or renew online marketing agreements; and

● competition.

The Company may be unable to reduce operating expenses quickly enough to offset any unexpected revenue shortfall. If the Company has a shortfall in revenue without a corresponding reduction to its expenses, operating results may suffer. The Company’s operating results for any particular quarter may not be indicative of future operating results. You should not rely on quarter-to-quarter comparisons of results of operations as an indication of the Company’s future performance. It is possible that results of operations may be below the expectations of public market analysts and investors, which could cause the trading price of the Company’s Class A common stock to fall.

During peak periods, the Company utilizes temporary employees and outsourced staff, who may not be as well-trained or committed to its customers as its permanent employees, and if they fail to provide the Company’s customers with high quality customer service the customers may not return, which could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows. The Company depends on its customer service department to respond to its customers should they have questions or problems with their orders. During peak periods, the Company relies on its permanent employees, as well as temporary employees and outsourced staff to respond to customer inquiries. These temporary employees and outsourced staff may not have the same level of commitment to the Company’s customers or be as well trained as its permanent employees. If the Company’s customers are dissatisfied with the quality of the customer service they receive, they may not shop with the Company again, which could have a material adverse effect on its business, financial condition, results of operations and cash flows.

If the Company fails to develop and maintain its brands, it may not increase or maintain its customer base or its revenues. The Company must continue to develop and maintain the 1-800-FLOWERS.COM brands to expand its customer base and its revenues. In addition, the Company has introduced and acquired other brands in the past, and may continue to do so in the future. The Company believes that the importance of brand recognition will increase as it expands its product offerings. Many of the Company’s customers may not be aware of the Company’s non-floral products. If the Company fails to advertise and market its products effectively, it may not succeed in establishing its brands and may lose customers leading to a reduction of revenues.

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The Company’s success in promoting and enhancing the 1-800-FLOWERS.COM brands will also depend on its success in providing its customers high-quality products and a high level of customer service. If the Company’s customers do not perceive its products and services to be of high quality, the value of the 1-800-FLOWERS.COM brands would be diminished and the Company may lose customers and its revenues may decline.

A failure to establish and maintain strategic online and social media relationships that generate a significant amount of traffic could limit the growth of the Company’s business. Although the Company expects a significant portion of its online customers will continue to come directly to its website and mobile applications, it will also rely on third party websites, search engines and affiliates with which the Company has strategic relationships for traffic. If these third-parties do not attract a significant number of visitors, the Company may not receive a significant number of online customers from these relationships and its revenues from these relationships may decrease or remain flat. There continues to be strong competition to establish or maintain relationships with leading Internet companies, and the Company may not successfully enter into additional relationships or renew existing ones beyond their current terms. The Company may also be required to pay significant fees to maintain and expand existing relationships. In addition, current or future legislation or changes to third parties’ policies may limit the Company’s ability to effectively reach consumers whose behavior suggests that they might be interested in Company products and may increase the cost of such marketing efforts. The Company’s online revenues may suffer if it does not enter into new relationships or maintain existing relationships or if these relationships do not result in traffic sufficient to justify their costs.

If local florists and other third-party vendors do not fulfill orders to the Company’s customers’ satisfaction, customers may not shop with the Company again. In many cases, floral orders placed by the Company’s customers are fulfilled by local independent florists, a majority of which are members of BloomNet. The Company does not directly control any of these florists. In addition, many of the non-floral products sold by the Company are manufactured and delivered to its customers by independent third-party vendors. If customers are dissatisfied with the performance of the local florist or other third-party vendors, they may not utilize the Company’s services when placing future orders and its revenues may decrease.

If a florist discontinues its relationship with the Company, the Company’s customers may experience delays in service or declines in quality and may not shop with the Company again. Many of the Company’s arrangements with local florists for order fulfillment may be terminated by either party with 10 days’ notice. If a florist discontinues its relationship with the Company, the Company will be required to obtain a suitable replacement located in the same geographic area, which may cause delays in delivery or a decline in quality, leading to customer dissatisfaction and loss of customers.

If a significant number of customers are not satisfied with their purchase, the Company will be required to incur substantial costs to issue refunds, credits or replacement products. The Company offers its customers a 100% satisfaction guarantee on its products. If customers are not satisfied with the products they receive, the Company will either replace the product for the customer or issue the customer a refund or credit. The Company’s net income would decrease if a significant number of customers request replacement products, refunds or credits and the Company is unable to pass such costs onto the supplier. 

Competition in the floral, plant, gift basket, gourmet food, and specialty gift industries is intense and a failure to respond to competitive pressure could result in lost revenues. There are many companies that offer products in these categories.

In the floral category, the Company’s competitors include:

● retail floral shops, some of which maintain toll-free telephone numbers and websites;

● online floral retailers;

● catalog companies that offer floral products;

● floral telemarketers and wire services; and

● supermarkets, mass merchants and specialty gift retailers with floral departments.

Similarly, the plant, gift basket, gourmet food, cookie, candy, fruit and specialty gift categories are each highly competitive. Each of these categories encompasses a wide range of products and is highly fragmented. Products in these categories may be purchased from a number of outlets, including mass merchants, retail shops, online retailers and mail-order catalogs.

Competition is intense and the Company expects it to increase. Increased competition could result in:

● price reductions, decreased revenue and lower profit margins;

● loss of market share; and

● increased marketing expenditures.

These and other competitive factors could materially and adversely affect the Company’s results of operations.  

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If the Company does not accurately predict customer demand for its products, it may lose customers or experience increased costs. If the Company overestimates customer demand for its products, excess inventory and outdated merchandise could accumulate, tying up working capital and potentially resulting in reduced warehouse capacity and inventory losses due to damage, theft and obsolescence. If the Company underestimates customer demand, it may disappoint customers who may turn to its competitors. Moreover, the strength of the 1-800-FLOWERS.COM brands could be diminished due to misjudgments in merchandise selection.

Extreme weather conditions and natural disasters, and other catastrophic events, may interrupt our business, or our suppliers’ businesses. Some of our facilities and our suppliers’ facilities are located in areas that may be subject to extreme, and occasionally prolonged, weather conditions, including hurricanes, tornadoes, and wildfires. Extreme weather conditions, whether caused by global climate change or otherwise, may interrupt our operations in such areas, negatively impacting various functions, such as production, distribution, and order fulfillment. Furthermore, extreme weather conditions may interrupt our suppliers’ production or shipments, or increase our suppliers’ product costs, all of which could have an adverse effect on our business, financial condition, and results of operations.

Various diseases, pests and certain weather conditions can affect fruit production. Various diseases, pests, fungi, viruses, drought, frosts, hail, wildfires, floods and certain other weather conditions could affect the quality and quantity of our fruit production in our Harry & David orchards, decreasing the supply of our products and negatively impacting profitability. Our producing orchards also require adequate water supplies. A substantial reduction in water supplies could result in material losses of crops, which could lead to a shortage of our product supply.

The ripening of our fruits is subject to seasonal fluctuations that could negatively impact profitability. The ripening of our fruits in the Harry & David orchards can happen earlier than predicted due to warmer temperatures during the year. This would result in an oversupply of fruits that we might not be able to sell on a timely basis and could result in significant inventory write-offs. The ripening of the Company’s fruits can also happen later than predicted due to colder temperatures during the year. This can cause a delay in product shipments and not being able to timely meet customer demand during the critical holiday season. Both of these scenarios could adversely affect our business, financial condition and results of operations.

If the Company is unable to hire and retain qualified employees, including key personnel, its business may suffer. The Company’s success is dependent on its ability to hire, retain and motivate highly qualified personnel. Given the competitive labor market, we cannot be assured that we can continue to hire, train and retain a sufficient number of qualified employees at current wage rates. In particular, the Company’s success depends on the continued efforts of its Chief Executive Officer, James F. McCann, as well as its senior management team, which help manage its business. The loss of the services of any of the Company’s executive management or key personnel or its inability to attract qualified additional personnel could cause its business to suffer and force it to expend time and resources in locating and training additional personnel.

A failure to integrate our acquisitions may cause the results of the acquired company, as well as the results of the Company to suffer.  The Company has opportunistically acquired a number of companies over the past several years. Additionally, the Company may look to acquire additional companies in the future. As part of the acquisition process, the Company embarks upon a project management effort to integrate the acquisition onto our information technology systems and management processes. Due diligence undertaken with any acquisition may not reveal all potential problems or inefficiencies involved in integrating the acquired entity into the Company. If we are unsuccessful in integrating our acquisitions, the results of our acquisitions may suffer, management may have to divert valuable resources to oversee and manage the acquisitions, the Company may have to expend additional investments in the acquired company to upgrade personnel and/or information technology systems and the results of the Company may suffer.

A failure to dispose of assets or businesses in a timely manner may cause the results of the Company to suffer. The Company continues to evaluate the potential disposition of assets and businesses that may no longer help meet its objectives. When the Company decides to sell assets or a business, it may encounter difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner, which could delay the accomplishment of its strategic objectives. Alternatively, the Company may dispose of a business at a price or on terms that are less than it had anticipated. After reaching an agreement with a buyer or seller for the disposition of a business, the Company is subject to satisfaction of pre-closing conditions, which may prevent the Company from completing the transaction. Dispositions may also involve continued financial involvement in the divested business, such as through continuing equity ownership, guarantees, indemnities or other financial obligations. Under these arrangements, performance by the divested businesses or other conditions outside the Company’s control could affect its future financial results.

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Information Technology and Systems

Failure to protect our website, networks and computer systems against disruption and cyber security threats, or otherwise protect our and our customers’ confidential information, could damage our relationships with our customers, harm our reputation, expose us to litigation and adversely affect our business. We rely extensively on our computer systems for the successful operation of our business, including corporate email communications to and from employees, customers and retail operations, the design, manufacture and distribution of our finished goods, digital marketing efforts, collection and retention of customer data, employee information, the processing of credit card transactions, online e-commerce activities and our interaction with the public in the social media space. Our systems are subject to damage or interruption from computer viruses, malicious attacks and other security breaches. The possibility of a cyber-attack on any one or all of these systems is always a serious threat and consumer awareness and sensitivity to privacy breaches and cyber security threats is high. If a cybersecurity incident occurs, or there is a public perception that we have suffered a breach, our reputation and brand could be damaged and we could be required to expend significant capital and other resources to alleviate problems.

As part of our business model, we collect, retain, and transmit confidential information over public networks. In addition to our own databases, we use third party service providers to store, process and transmit this information on our behalf. Although we contractually require these service providers to implement and use reasonable security measures, we cannot control third parties and cannot guarantee that a security breach will not occur in the future either at their location or within their systems. We have reasonable and up-to-date security measures in place to protect both our physical facilities and digital systems from attacks. Despite these efforts, we may be vulnerable to targeted or random security breaches, acts of vandalism, computer viruses, misplaced or lost data, programming and/or human errors, or other similar events.

Given the robust nature of our e-commerce presence and digital strategy, it is imperative that we and our e-commerce partners maintain uninterrupted operation of our: (i) computer hardware, (ii) software systems, (iii) customer marketing databases, and (iv) ability to email our current and potential customers.

If our systems are damaged or fail to function properly or reliably, we may incur substantial interruption, repair or replacement costs, experience data loss or theft and impediments to our ability to conduct our operations. Any material disruptions in our e-commerce presence or information technology systems could have a material adverse effect on our business, financial condition and results of operations.

An increase in the number of employees working remotely has amplified certain risks to the Company’s business and increased demand on the Company’s information technology resources and systems. Following the COVID-19 pandemic, the Company experienced an increase in the number of its employees working remotely, which has led to increased phishing and other cybersecurity attacks as cybercriminals try to exploit the uncertainty surrounding the COVID-19 pandemic, and an increase in the number of points of potential attack, such as laptops and mobile devices (both of which are now being used in increased numbers), to be secured, and any failure to effectively manage these risks, including to timely identify and appropriately respond to any cyberattacks, may adversely affect the Company’s business.

If the Company fails to continuously improve its website (on all relevant platforms, including mobile), including successful deployment of new technology, it may not attract or retain customers and may otherwise experience harm to its business. If potential or existing customers do not find the Company’s website (on all relevant platforms, including mobile) a convenient place to shop, the Company may not attract or retain customers and its sales may suffer. To encourage the use of the Company’s website, it must continuously improve its accessibility, content and ease of use. If the Company is unable to maintain a compelling web presence, including by successfully responding to new technology trends (such as generative artificial intelligence), competitors' websites may be perceived as easier to use or better able to satisfy customer needs. In addition, our use of generative AI in certain features of our website may present risks and challenges that remain uncertain due to the relative novelty of this technology, and could subject us to competitive harm, regulatory action, legal liability and brand or reputational harm.

The Company’s business could be injured by significant credit card, debit card and gift card fraud. Customers typically pay for their on-line or telephone orders with debit or credit cards as well as a portion of their orders using gift cards. The Company’s revenues and gross margins could decrease if it experienced significant credit card, debit card and gift card fraud. Failure to adequately detect and avoid fraudulent credit card, debit card and gift card transactions could cause the Company to lose its ability to accept credit cards or debit cards as forms of payment and/or result in charge-backs of the fraudulently charged amounts and/or significantly decrease revenues. Furthermore, widespread credit card, debit card and gift card fraud may lessen the Company’s customers’ willingness to purchase products through the Company’s websites or toll-free telephone numbers. For this reason, such failure could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.

Unexpected system interruptions caused by system failures may result in reduced revenues and harm to the Company’s brand. In the past, particularly during peak holiday periods, the Company has experienced significant increases in traffic on its website and in its toll-free customer service centers. The Company’s operations are dependent on its ability to maintain its computer and telecommunications systems in effective working order and to protect its systems against damage from fire, natural disaster, power loss, telecommunications failure, security breaches (including breaches of our transaction processing or other systems that could result in the compromise of confidential customer data), or similar events. The Company’s systems have in the past, and may in the future, experience:

● system interruptions;

● long response times; and

● degradation in service.

In addition, the Company periodically updates or replaces legacy systems with successor systems.  If the Company fails to timely and successfully effect any such updates, the Company’s order management, fulfillment, or other business processes could experience interruptions.

The Company’s business depends on customers making purchases on its systems. Its revenues may decrease and its reputation could be harmed if it experiences frequent or long system delays or interruptions or if a disruption occurs during a peak holiday season.

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If the Company’s telecommunications providers do not adequately maintain the Company’s service, the Company may experience system failures and its revenues may decrease. The Company is dependent on telecommunication providers to provide telephone services to its customer service centers and connectivity with its data centers. Although the Company maintains redundant telecommunications systems, if these providers experience system failures or fail to adequately maintain the Company’s systems, the Company may experience interruptions and will be unable to generate revenue. The Company depends upon these third-party relationships because it does not have the resources to maintain its service without these or other third parties. Failure to maintain these relationships or replace them on financially attractive terms may disrupt the Company’s operations or require it to incur significant unanticipated costs.

Legal, Regulatory, Tax and Other Risks

Unauthorized use of the Company’s intellectual property by third parties may damage its brands. Unauthorized use of the Company’s intellectual property by third parties may damage its brands and its reputation and may likely result in a loss of customers. It may be possible for third parties to obtain and use the Company’s intellectual property without authorization. Third parties have in the past infringed or misappropriated the Company’s intellectual property or similar proprietary rights. The Company believes infringements and misappropriations will continue to occur in the future. Furthermore, the validity, enforceability and scope of protection of intellectual property in Internet-related industries is uncertain and still evolving. The Company has been unable to register certain of its intellectual property in some foreign countries and furthermore, the laws of some foreign countries are uncertain or do not protect intellectual property rights to the same extent as do the laws of the United States.  The protection of the Company's intellectual property may require significant time and expense, and we may not be successful in our efforts. 

The Company’s franchisees may damage its brands or increase its costs by failing to comply with its franchise agreements or its operating standards. The Company’s franchise business is governed by its Uniform Franchise Disclosure Document, franchise agreements and applicable franchise law. If the Company’s franchisees do not comply with its established operating standards or the terms of the franchise agreements, the 1-800-FLOWERS.COM brands may be damaged. The Company may incur significant additional costs, including time-consuming and expensive litigation, to enforce its rights under the franchise agreements. Additionally, the Company is the primary tenant on certain leases, which the franchisees sublease from the Company. If a franchisee fails to meet its obligations as subtenant, the Company could incur significant costs to avoid default under the primary lease. Furthermore, as a franchisor, the Company has obligations to its franchisees. Franchisees may challenge the performance of the Company’s obligations under the franchise agreements and subject it to costs in defending these claims and, if the claims are successful, costs in connection with their compliance.

If third parties acquire rights to use similar domain names or phone numbers or if the Company loses the right to use its phone numbers, its brands may be damaged and it may lose sales. The Company’s Internet domain names are an important aspect of its brand recognition. The Company cannot practically acquire rights to all domain names similar to www.1800flowers.com, or its other brands, whether under existing top level domains or those issued in the future. If third parties obtain rights to similar domain names, these third parties may confuse the Company’s customers and cause its customers to inadvertently place orders with these third parties, which could result in lost sales and could damage its brands.

Likewise, the phone number that spells 1-800-FLOWERS is important to the Company’s brand and its business. While the Company has obtained the right to use the phone numbers 1-800-FLOWERS, 1-888-FLOWERS and 1-877-FLOWERS, as well as common toll-free “FLOWERS” misdials, it may not be able to obtain rights to use the FLOWERS phone number as new toll-free prefixes are issued, or the rights to all similar and potentially confusing numbers. If third parties obtain the phone number that spells “FLOWERS" with a different prefix or a toll-free number similar to FLOWERS, these parties may also confuse the Company’s customers and cause lost sales and potential damage to its brands. In addition, under applicable FCC rules, ownership rights to phone numbers cannot be acquired. Accordingly, the FCC may rescind the Company’s right to use any of its phone numbers, including 1-800-FLOWERS (1-800-356-9377).

Defending against intellectual property infringement claims could be expensive and, if the Company is not successful, could disrupt its ability to conduct business. The Company has been unable to register certain of its intellectual properties in some foreign countries, including, “1-800-Flowers.com”, “1-800-Flowers” and “800-Flowers”. The Company cannot be certain that the products it sells, or services it offers, do not or will not infringe valid patents, trademarks, copyrights or other intellectual property rights held by third parties. The Company may be a party to legal proceedings and claims relating to the intellectual property of others from time to time in the ordinary course of its business. The Company may incur substantial expense in defending against these third-party infringement claims, regardless of their merit. Successful infringement claims against the Company may result in substantial monetary liability or may materially disrupt its ability to conduct business.

Product liability claims may subject the Company to increased costs. Several of the products the Company sells, including perishable food and alcoholic beverage products, may expose it to product liability claims in the event that the use or consumption of these products results in personal injury or property damage. Although the Company has not experienced any material losses due to product liability claims to date, it may be a party to product liability claims in the future and incur significant costs in their defense. Product liability claims often create negative publicity, which could materially damage the Company’s reputation and its brands. Although the Company maintains insurance against product liability claims, its coverage may be inadequate to cover any liabilities it may incur.

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Future litigation could have a material adverse effect on our business and results of operations. Lawsuits and other administrative or legal proceedings that may arise in the course of our operations can involve substantial costs, including the costs associated with investigation, litigation and possible settlement, judgment, penalty or fine. In addition, lawsuits and other legal proceedings may be time consuming and may require a commitment of management and personnel resources that will be diverted from our normal business operations. Although we generally maintain insurance to mitigate certain costs, there can be no assurance that costs associated with lawsuits or other legal proceedings will not exceed the limits of insurance policies. Moreover, we may be unable to continue to maintain our existing insurance at a reasonable cost, if at all, or to secure additional coverage, which may result in costs associated with lawsuits and other legal proceedings being uninsured. Our business, financial condition, and results of operations could be adversely affected if a judgment, penalty or fine is not fully covered by insurance.

A privacy or data security breach could expose us to costly government enforcement actions and private litigation and adversely affect our business. An important component of our business involves the receipt, processing, transmittal, and storage of personal and confidential information about our customers. We have programs in place to detect, contain and respond to data security incidents. However, because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or implement adequate preventive measures. In addition, hardware, software, or applications we develop or procure from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. Unauthorized parties may also attempt to gain access to our systems or facilities, or those of third parties with whom we do business, through fraud, trickery, or other forms of deceiving our team members, contractors, vendors, and temporary staff. In addition, security breaches can also occur as a result of intentional or inadvertent breaches by our employees or by persons with whom we have commercial relationships. Any actual or suspected security breach or other compromise of our security measures or those of our third party vendors, whether as a result of banking efforts, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering or otherwise, could harm our reputation and business, damage our brand and make it harder to retain existing customers or acquire new ones, require us to expend significant capital and other resources to address the breach, and result in a violation of applicable laws, regulations or other legal obligations. Moreover, any insurance coverage we may carry may be inadequate to cover the expenses and other potential financial exposure we could face as a result of a privacy or data breach.

Our business is subject to government regulation in various areas, and the increasing costs of compliance efforts, as well as any potential non-compliance, could adversely impact our business. We are subject to laws and regulations affecting our operations in a number of areas, including consumer protection, labor and employment, data privacy, product safety, and environmental. Compliance with these and similar laws and regulations may require significant effort and expense, and variances and inconsistencies in requirements among jurisdictions may exacerbate this. The time and expense of compliance with existing and future regulations could, in the aggregate, adversely affect our results of operations, limit our product and service offerings in one or more regions, constrain our marketing efforts, or otherwise cause us to change or limit our business practices.

We have implemented policies and procedures designed to ensure compliance with applicable laws and regulations, but there can be no assurance that our customers, employees, contractors, vendors, franchisees, or agents will not violate such laws and regulations or our policies and procedures. If we are held responsible for any such violations, we could incur substantial aggregate expense from monetary penalties, resolution of customer claims, higher insurance premiums, and the time and expense of addressing any such violation, which could be material to us. Additionally, we could experience reputational harm as a result of any such violations.

Failure to comply with federal, state and international laws and regulations relating to privacy, data protection and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection and consumer protection, could adversely affect our business and our financial condition. 

A variety of federal, state and international laws and regulations govern the collection, use, retention, sharing, export and security of personal information. We also may choose to comply with, or may be required to comply with, self-regulatory obligations or other industry standards. Laws and regulations relating to privacy, data protection and consumer protection are evolving and subject to potentially differing interpretations, and laws providing for new privacy and security rights and requirements may be enacted or come into effect in different jurisdictions. These requirements may be enacted, interpreted or applied in a manner that is inconsistent from one jurisdiction to another or in a manner that conflicts with other rules or our practices. As a result, our practices may not comply, or may not comply in the future with all such laws, regulations, requirements and obligations. Any failure, or perceived failure, by us to comply with any federal, state or international privacy or consumer protection-related laws, regulations, regulatory guidance, orders to which we may be subject or other legal obligations relating to privacy or consumer protection could adversely affect our reputation, brand and business, and may result in claims, proceedings or actions against us by governmental entities or others, including claims for statutory damages asserted on behalf of purported classes of affected persons or other liabilities or require us to change our business practices, including changing, limiting or ceasing altogether the collection, use, sharing, or transfer of data relating to customers, which could materially adversely affect our business, financial condition and operating results.

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Many governmental regulations may impact the Internet, which could affect the Company’s ability to conduct business. Any new law or regulation, or the application or interpretation of existing laws, may adversely impact the growth in the use of the Internet or the Company’s websites. The Company expects there will be an increasing number of laws and regulations pertaining to the Internet in the United States and throughout the world. These laws or regulations may relate to liability for information received from or transmitted over the Internet, online content regulation, user privacy, taxation and quality of products and services sold over the Internet. Moreover, the applicability to the Internet of existing laws governing intellectual property ownership and infringement, copyright, trademark, trade secret, obscenity, libel, employment, personal privacy and other issues is uncertain and developing. This could decrease the demand for the Company’s products, increase its costs or otherwise adversely affect its business.

Regulations imposed by the Federal Trade Commission may adversely affect the growth of the Company’s Internet business or its marketing efforts. The Federal Trade Commission has proposed regulations regarding the collection and use of personal identifying information obtained from individuals when accessing websites, with particular emphasis on access by minors. These regulations may include requirements that the Company establish procedures to disclose and notify users of privacy and security policies, obtain consent from users for collection and use of information and provide users with the ability to access, correct and delete personal information stored by the Company. These regulations may also include enforcement and redress provisions. Moreover, even in the absence of those regulations, the Federal Trade Commission has begun investigations into the privacy practices of other companies that collect information on the Internet. One investigation resulted in a consent decree under which an Internet company agreed to establish programs to implement the principles noted above. The Company may become a party to a similar investigation, or the Federal Trade Commission’s regulatory and enforcement efforts, or those of other governmental bodies, which may adversely affect its ability to collect demographic and personal information from users, and could adversely affect its marketing efforts.

Our business is subject to evolving corporate governance and public disclosure regulations and expectations. We are subject to evolving rules and regulations promulgated by a number of federal, state, and local governmental and self-regulatory organizations, including the United States Securities and Exchange Commission (“SEC”), the Nasdaq Stock Exchange and the Financial Accounting Standards Board. These rules and regulations continue to increase in scope and complexity, making compliance more difficult, expensive and uncertain. In addition, public companies are encountering increased scrutiny on ESG matters and related disclosures. These changing rules, regulations and stakeholder expectations have resulted in, and are likely to continue to result in, increased general and administrative expenses and increased management time and attention spent complying with or meeting such regulations and expectations. For example, developing and acting on initiatives within the scope of ESG, and collecting, measuring and reporting ESG-related information and metrics can be costly, difficult and time consuming and is subject to evolving reporting standards. We could be criticized, fined or suffer other adverse consequences based on the inaccuracy, inadequacy or incompleteness of our reporting. If our ESG-related data, processes and reporting are incomplete or inaccurate, or if we otherwise fail to comply with ESG-related regulations, our reputation, business, financial performance and growth could be adversely affected.

The price at which the Company’s Class A common stock will trade may be highly volatile and may fluctuate substantially. The stock market has from time to time experienced price and volume fluctuations that have affected the market prices of securities, particularly securities of companies with Internet operations. As a result, investors may experience a material decline in the market price of the Company’s Class A common stock, regardless of the Company’s operating performance. In the past, following periods of volatility in the market price of a particular company’s securities, securities class action litigation has often been brought against that company. The Company may become involved in this type of litigation in the future. Litigation of this type is often expensive and diverts management’s attention and resources and could have a material adverse effect on the Company’s business and its results of operations.

Additional Information

The Company’s internet address is www.1800flowers.com. We make available, through the investor relations tab located on our website at www.1800flowersinc.com, access to our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. All such filings on our investor relations website are available free of charge. (The information posted on the Company’s website is not incorporated into this Annual Report on Form 10-K.)

A copy of this Annual Report on Form 10-K is available without charge upon written request to: Investor Relations, 1-800-FLOWERS.COM, Inc., Two Jericho Plaza, Suite 200, Jericho, NY 11753. In addition, the SEC maintains a website (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.

Item 1B. Unresolved Staff Comments

We have received no written comments regarding our current or periodic reports from the staff of the SEC that were issued 180 days or more preceding the end of our fiscal year ended June 30, 2024 that remain unresolved.

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Item 1C. Cybersecurity

Risk Management and Strategy

In the ordinary course of our business, we utilize technology systems to collect, use, store, and transmit information. The confidentiality, integrity, and availability of the information in our systems is important to our operations, business strategy, and maintaining the trust of our customers, employees and partners. As part of our enterprise risk management program, we have processes in place to identify, assess, and manage material risks associated with cybersecurity threats, as such term is defined in Item 106(a) of Regulation S-K.

Our cybersecurity team engages with applicable personnel across the enterprise and utilizes software tools to identify, categorize, and quantify material cybersecurity threat risks.  The team meets regularly to consider new, known, and evolving risks and evaluate the measures in place to mitigate these risks.

Our strategy for managing cybersecurity risk is multifaceted and includes, without limitation: (i) robust security policies and procedures, designed in part to comply with Payment Card Industry, or PCI, rules; (ii) an incident response plan, (iii) comprehensive system security elements and vulnerability scanning; (iv) periodic cybersecurity awareness training and testing for employees and certain contractors; (v) risk management of our third-party suppliers, vendors, and other partners, which includes risk-based diligence and contractual provisions that generally allow for periodic auditing, and (vi) security assessments of any businesses that we acquire.

As part of our cybersecurity risk management program, we periodically engage third parties to evaluate and test our systems, run tabletop exercises to test our incident response processes, provide incident response support if needed, and review our PCI compliance.

We face ongoing risks that, if realized, could materially impact our business, operations and financial results. See our risk factor disclosures in Item 1A of this Annual Report on Form 10-K under the heading “Information Technology and Systems,” which are incorporated by reference herein. To date, risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected the company, including our business strategy, results of operations, or financial condition.

Governance

The Board of Directors of the Company (the “Board”), as a whole and through its committees, oversees the Company’s risk management process, including operational, financial, legal, strategic, marketing and brand reputation risks. The Technology and Cybersecurity Committee of the Board (the “Committee”) oversees risk management associated with the Company’s information technology use and protection, including data governance, privacy, compliance, and cybersecurity. The Committee comprises Board members with particular expertise in technology and management, equipping them to oversee cybersecurity risks effectively.

The Committee is responsible for the oversight of the Company’s policies and procedures intended to provide security, confidentiality, availability, and integrity of the Company’s information, including with respect to data privacy and the Company’s compliance with applicable data privacy and cybersecurity laws and regulations. The Committee also oversees the quality and effectiveness of the Company’s policies and procedures with respect to its information technology systems and provides oversight on the Company’s policies and procedures in maintaining preparedness for responding to any material incidents. The Committee also periodically coordinates with the Company’s Audit Committee, which reviews risks related to the Company’s information technology systems, including privacy, network security and data security.

The Company’s program to identify, assess, and manage cybersecurity risks is led by our Chief Information Officer, and leverages the expertise of our Chief Financial Officer and General Counsel. Our Chief Information Officer holds a Bachelor of Science in Computer Science and has over 30 years of work experience, with more than 20 years in senior executive roles involving managing information systems, including implementing effective information and cybersecurity programs. Our Chief Information Officer, who reports to our Chief Executive Officer, meets regularly with the executive leadership team regarding topics related to technology operations, including cybersecurity, and also periodically updates the Board and the Committee regarding the Company’s cybersecurity and data privacy risk mitigation plans.

With respect to the prevention, detection, mitigation, and remediation of cybersecurity incidents, our information security team, under the direction of our Chief Information Officer, monitors our information systems, assesses the severity of any incidents it detects or that are otherwise reported, and follows escalation procedures embedded within our incident response plan to inform the Chief Information Officer, other members of management, the Committee, and the Board, each as needed.

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Item 2. PROPERTIES

The table below lists the Company’s material properties at June 30, 2024:

Location	Type	Principal Use	Square Footage	Ownership
Medford, OR	Office, plant and warehouse	Manufacturing, distribution and administrative	1,112,000	owned
Bolingbrook, IL	Office, plant and warehouse	Manufacturing, distribution and administrative	361,176	leased
Hebron, OH	Office, plant and warehouse	Manufacturing, distribution and administrative	330,900	owned
Medford, OR	Warehouse	Storage	324,500	leased
Obetz, OH	Warehouse	Distribution	301,176	leased
Atlanta, GA	Warehouse	Manufacturing and distribution	272,821	leased
Groveport, OH	Warehouse	Distribution	255,070	leased
Melrose Park, IL	Office and warehouse	Distribution, administrative and customer service	250,000	leased
Jacksonville, FL	Office and warehouse	Distribution and administrative	180,000	owned
Lake Forest, IL	Office, plant and warehouse	Manufacturing, distribution and administrative	148,000	leased
Hebron, OH	Warehouse	Storage	116,000	leased
Burr Ridge, IL	Office, plant and warehouse	Manufacturing, distribution and administrative	109,722	leased
Jericho, NY	Office	Headquarters	92,700	leased
Westerville, OH	Office, plant and warehouse	Manufacturing, distribution and administrative	88,000	owned
Reno, NV	Warehouse	Distribution	70,000	leased
Memphis, TN	Warehouse	Distribution	70,000	leased
Jackson County, OR	Orchards	Farming	41 (acres)	leased
Jackson County, OR	Orchards	Farming	1,705 (acres)	owned
Jackson County, OR	Land	Fallow land	1,476 (acres)	owned
Josephine County, OR	Orchards	Farming	67 (acres)	owned
Josephine County, OR	Land	Fallow land	112 (acres)	owned

Item 3. LEGAL PROCEEDINGS

See Note 17 in Part IV, Item 15 for details.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

1-800-FLOWERS.COM’s Class A common stock trades on The NASDAQ Global Select Market under the ticker symbol “FLWS.” There is no established public trading market for the Company’s Class B common stock.

Rights of Common Stock

Holders of Class A common stock generally have the same rights as the holders of Class B common stock, except that holders of Class A common stock have one vote per share and holders of Class B common stock have 10 votes per share on all matters submitted to the vote of stockholders. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the stockholders for their vote or approval, except as may be required by Delaware law. Class B common stock may be converted into Class A common stock at any time on a one-for-one share basis. Each share of Class B common stock will automatically convert into one share of Class A common stock upon its transfer, with limited exceptions.  During Fiscal 2023 and 2022, 181,393 and 904,000 shares of Class B common stock, respectively, were converted into shares of Class A common stock.  During Fiscal 2024, no shares of Class B common stock were converted into shares of Class A common stock.

Holders

As of August 30, 2024, there were approximately 190 stockholders of record of the Company’s Class A common stock, although the Company believes that there is a significantly larger number of beneficial owners. As of August 30, 2024, there were 12 stockholders of record of the Company’s Class B common stock.

Purchases of Equity Securities by the Issuer

The Company has a stock repurchase plan through which purchases can be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The repurchase program is financed utilizing available cash. On April 22, 2021, the Company’s Board of Directors authorized an increase to its stock repurchase plan of up to $40.0 million. In addition, on February 3, 2022, the Company’s Board of Directors authorized an additional increase to its stock repurchase plan of up to $40.0 million. The Company repurchased a total of$10.4 million (1,079,415 shares), $1.2 million (147,479 shares), and $38.2 million (1,592,555 shares) during the fiscal years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively, under this program. As of June 30, 2024,$21.6 million remains authorized under the plan.

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The following table sets forth, for the months indicated, the Company’s purchase of common stock during the fiscal year 2024, which includes the period July 3, 2023 through June 30, 2024:

					Total Number
					of Shares
					Purchased as		Dollar Value of
					Part of		Shares
	Total Number				Publicly		that May Yet
	of		Average Price		Announced		Be Purchased
	Shares		Paid Per Share		Plans or		Under the Plans
Period	Purchased			(1)	Programs		or Programs
	(in thousands, except shares and average price paid per share)
07/03/23 – 07/30/23		-	$	-		-	$	31,965
07/31/23 – 08/27/23		-	$	-		-	$	31,965
08/28/23 – 10/01/23		10,483	$	7.08		10,483	$	31,890
10/02/23 – 10/29/23		-	$	-		-	$	31,890
10/30/23 – 11/26/23		272,978	$	8.56		272,978	$	29,549
11/27/23 – 12/31/23		240,000	$	9.85		240,000	$	27,178
01/01/24 – 01/28/24		180,000	$	10.38		180,000	$	25,305
01/29/24 – 02/25/24		124,823	$	10.10		124,823	$	24,040
02/26/24 – 03/31/24		120,000	$	10.42		120,000	$	22,787
04/01/24 – 04/28/24		100,000	$	9.27		100,000	$	21,857
04/29/24 – 05/26/24		31,131	$	9.15		31,131	$	21,571
05/27/24 – 06/30/24		-	$	-		-	$	21,571
Total		1,079,415	$	9.60		1,079,415

(1)  Average price per share excludes commissions and other transaction fees.

Dividends

We have never declared or paid cash dividends on our common stock. We currently do not anticipate paying any cash dividends in the foreseeable future. Any future determination to declare cash dividends will be made at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions and other factors that our board of directors may deem relevant.

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Item 6. RESERVED

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) is intended to provide an understanding of our financial condition, change in financial condition, cash flow, liquidity and results of operations. The following MD&A discussion should be read in conjunction with the consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-K. The following discussion contains forward-looking statements that reflect the Company’s plans, estimates and beliefs. The Company’s actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to any differences include, but are not limited to, those discussed under the caption “Forward-Looking Information” and under Item 1A — “Risk Factors.”

Business overview

The Company is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. See Item 1 in Part I for a detailed description of the Company’s business.

Business Segments

The Company operates in the following three business segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. The Consumer Floral & Gifts segment includes the operations of the Company’s flagship brand, 1-800-Flowers.com, PersonalizationMall, Things Remembered, FruitBouquets.com, Flowerama and Alice’s Table, while the Gourmet Foods & Gift Baskets segment includes the operations of Harry & David, Wolferman’s Bakery, Vital Choice, Moose Munch, Cheryl’s Cookies, Mrs. Beasley’s, The Popcorn Factory, DesignPac, 1-800-Baskets.com, Simply Chocolate, Shari’s Berries, and Scharffen Berger. The BloomNet segment includes the operations of BloomNet, Napco, and Card Isle.

Fiscal 2024 Results

Fiscal 2024, was a challenging year from a top-line perspective due to lower demand across all segments.  Consumers continued to moderate their discretionary purchases in the face of macroeconomic pressures as they remain pressured by persistent inflation, higher interest rates, and the resumption of student loan repayments. The downward trend in “Everyday” demand and, to a lesser extent, “Holiday” demand, which began in the latter half of fiscal 2022, persisted throughout fiscal 2024. The Company did see the consumer spend increase during the fiscal 2024 holiday season, but at softer than anticipated levels and later in the holiday period.  However, the Company has benefited from favorable product mix, as higher income customers continued to purchase higher-end product offerings. 

During fiscal 2024, net revenues declined by $186.4 million, or 9.2%, to $1,831.4 million, compared to fiscal 2023, primarily due to the aforementioned slowing demand for everyday gifting occasions as discretionary income remains under pressure and consumers continue to moderate their spending.  The lower revenues were also due to the prudent use of promotional offerings and advertising campaigns that balance the long-term goals of the Company with strategies to improve gross margins and stabilize bottom-line metrics. 

In fiscal 2024, the Company did experience less volatility in freight, labor, and certain commodity costs.  This along with the Company's logistics optimization efforts, have driven significant improvements in the Company’s margins, with fiscal 2024 gross margins improving throughout the year and ending at 40.1%; a 260-basis point improvement over fiscal 2023.

Net loss was $6.1 million, compared with a net loss of $44.7 million in fiscal 2023.  Adjusted EBITDA for fiscal 2024 was $93.1 million, compared with $91.2 million in fiscal 2023, reflecting the improvement in Adjusted EBITDA of $1.9, driven by improvements in gross margin and operating expense efficiencies that offset the revenue decline noted above (See Reconciliation of net loss to adjusted EBITDA (non-GAAP) below).

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Goodwill and Intangible Asset Impairment

During the second quarter of fiscal 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename, as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

During the third quarter of fiscal 2023, the Company evaluated whether events or circumstances had changed such that it would indicate it was more likely than not that its goodwill, intangible and other long-lived assets of the Gourmet Foods & Gift Baskets reporting units fair values were less than their carrying amounts. After considering the continuing pressures on consumer discretionary spending, ongoing geopolitical events, the current inflationary macro-economic conditions, related cost input headwinds that have negatively impacted the Company’s gross margins, and resulting downward revisions to its forecast, the Company concluded that a triggering event had occurred for its Gourmet Foods & Gift Baskets reporting unit. As such, the Company performed an impairment test of the reporting unit’s goodwill, intangibles and long-lived assets as of April 2, 2023, and recorded a non-cash adjustment to fully impair the related goodwill ($62.3 million), and partially impaired certain tradenames ($2.3 million) within the reporting unit – see Note 6 – Goodwill and Intangible Assets in Item 15.

Acquisition of Card Isle

On April 3, 2024, the Company completed its acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on its balance sheet to fund the $3.6 million purchase.  Card Isle annual revenue, based on its most recently available financial information, is deemed immaterial to the Company's consolidated financial statements – see Note 4 – Acquisitions in Item 15 .

Acquisition of Things Remembered

On January 10, 2023, the Company completed its acquisition of certain assets of the Things Remembered brand, a provider of personalized gifts, whose operations have been integrated within the PersonalizationMall.com brand, in the Consumer Floral & Gifts segment. The Company used cash on hand to fund the $5.0 million purchase, which included the intellectual property, customer list, certain inventory, and equipment. The acquisition did not include Things Remembered retail stores. Things Remembered’s annual revenues from its ecommerce operations, based on its most recently available unaudited financial information was $30.4 million for the twelve months ended November 30, 2022  – see Note 4 – Acquisitions in Item 15 .

Acquisition of Alice’s Table

On December 31, 2021, the Company completed its acquisition of Alice's Table LLC (“Alice’s Table”), a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country. The Company utilized existing cash of $0.8 million, converted the existing accounts receivable from Alice’s Table of $0.3 million and its previous $0.3 million cost method investment in Alice’s Table, in order to acquire 100% ownership in Alice’s Table, which included tradenames, customer lists, websites and operations. Alice’s Table revenues were approximately $3.8 million during its fiscal twelve-month period ended September 30, 2021 – see  Note 4 – Acquisitions in Item 15 .

Acquisition of Vital Choice

On October 27, 2021, the Company completed its acquisition of Vital Choice Seafood LLC (“Vital Choice”), a provider of wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods, and marine-sourced nutritional supplements. The Company utilized its credit facility to fund the $20.0 million purchase, which included tradenames, customer lists, websites and operations. Vital Choice revenues were approximately $27.8 million during its most recent year ended December 31, 2020 – see Note 4 – Acquisitions in Item 15.

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Fiscal 2025 Guidance

For Fiscal 2025, with a sustained challenging consumer environment, the Company expects revenues trends to improve as the fiscal year progresses benefitting from the company’s Relationship Innovation initiatives that have expanded the Company’s product offerings, broadened price points, and enhanced the user experience, combined with increased marketing spend.  Additionally, the guidance assumes increased incentive compensation expense.

As a result, the Company expects Fiscal 2025:

•  Total revenues on a percentage basis to be in a range of flat to a decrease in the low-single digits, as compared with the prior year;

•  Adjusted EBITDA to be in a range of $85 million to $95 million; and

•  Free Cash Flow to be in a range of $45 million to $55 million.

Definitions of non-GAAP financial measures:

We sometimes use financial measures derived from consolidated financial information, but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. See below for definitions and the reasons why we use these non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures. These non-GAAP financial measures are referred to as “non-GAAP”, “adjusted” or “on a comparable basis” below, as these terms are used interchangeably. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, tax items, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The lack of such reconciling information should be considered when assessing the impact of such disclosures.

EBITDA and adjusted EBITDA

We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for the impact of stock-based compensation, Non-Qualified Plan Investment appreciation/depreciation, and certain items affecting period-to-period comparability. 

The Company presents EBITDA and adjusted EBITDA because it considers such information meaningful supplemental measures of its performance and believes such information is frequently used by the investment community in the evaluation of similarly situated companies. The Company uses EBITDA and adjusted EBITDA as factors used to determine the total amount of incentive compensation available to be awarded to executive officers and other employees. The Company’s credit agreement uses EBITDA and adjusted EBITDA to determine its interest rate and to measure compliance with certain covenants. EBITDA and adjusted EBITDA are also used by the Company to evaluate and price potential acquisition candidates.

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EBITDA and adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Some of the limitations are: (a) EBITDA and adjusted EBITDA do not reflect changes in, or cash requirements for, the Company’s working capital needs; (b) EBITDA and adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on the Company’s debts; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and EBITDA does not reflect any cash requirements for such capital expenditures. EBITDA and Adjusted EBITDA should only be used on a supplemental basis combined with GAAP results when evaluating the Company’s performance.

The following table presents the EBITDA and adjusted EBITDA for fiscal years ended June 30, 2024 and July 2, 2023. For EBITDA and adjusted EBITDA for the fiscal year ended July 3, 2022, please refer to our Annual Report on Form 10-K for the fiscal year ended July 3, 2022.

Reconciliation of net loss to adjusted EBITDA (non-GAAP):	Years Ended
	June 30,			July 2,
	2024			2023
	(in thousands)
Net loss	$	(6,105	)	$	(44,702	)
Add: Interest expense and other expense, net		3,830			11,751
Add: Depreciation and amortization		53,752			53,673
Add: Income tax expense (benefit)		203			(2,060	)
EBITDA		51,680			18,662
Add: Stock-based compensation		10,688			8,334
Add: Compensation charge related to NQDC plan investment appreciation (depreciation)		6,904			(822	)
Add: Goodwill and intangible impairment		19,762			64,586
Add: Transaction costs		269			444
Add: Restructuring cost/Severance		2,564			-
Add: Litigation settlement		1,200			-
Adjusted EBITDA	$	93,067		$	91,204

Adjusted net income (loss) and adjusted or comparable net income (loss) per common share

We define adjusted net income (loss) and adjusted or comparable net income (loss) per common share as net income (loss) and net income (loss) per common share adjusted for certain items affecting period-to-period comparability. We believe that adjusted net income (loss) and adjusted or comparable net income (loss) per common share are meaningful measures because they increase the comparability of period-to-period results. Since these are not measures of performance calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, GAAP net income (loss) and net income (loss) per common share, as indicators of operating performance and they may not be comparable to similarly titled measures employed by other companies.

The following table presents the adjusted net income for fiscal years ended June 30, 2024 and July 2, 2023. For adjusted net income for fiscal year ended July 3, 2022, please refer to our Annual Report on Form 10-K for the fiscal year ended July 3, 2022.

Reconciliation of net loss to adjusted net income (non-GAAP):	Years Ended
	June 30,			July 2,
	2024			2023
	(in thousands)
Net loss	$	(6,105	)	$	(44,702	)
Adjustments to reconcile net loss to adjusted net income (non-GAAP)
Add: Transaction costs		269			444
Add: Restructuring cost/Severance		2,564			-
Add: Litigation settlement		1,200			-
Add: Goodwill and intangible impairment		19,762			64,586
Deduct: Income tax effect on adjustments		(6,079	)		(6,899	)
Adjusted net income (non-GAAP)	$	11,611		$	13,429
Basic and diluted net loss per common share	$	(0.09	)	$	(0.69	)
Basic and diluted adjusted net income per common share (non-GAAP)	$	0.18		$	0.21
Weighted average shares used in the calculation of basic and diluted net loss and adjusted net income per common share		64,586			64,688

Segment contribution margin and adjusted segment contribution margin

We define segment contribution margin as earnings before interest, taxes, depreciation and amortization, before the allocation of corporate overhead expenses. Adjusted segment contribution margin is defined as segment contribution margin adjusted for certain items affecting period-to-period comparability.  When viewed together with our GAAP results, we believe segment contribution margin and adjusted segment contribution margin provide management and users of the financial statements meaningful information about the performance of our business segments.

Segment contribution margin and adjusted segment contribution margin are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of the segment contribution margin and adjusted segment contribution margin is that they are an incomplete measure of profitability as they do not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as Operating Income and Net Income. 

The following table presents the net revenues, gross profit, segment contribution margin, and adjusted segment contribution margin from each of the Company’s business segments, for fiscal years ended June 30, 2024 and July 2, 2023. For segment contribution margin and adjusted segment contribution margin for the fiscal year ended July 3, 2022, please refer to our Annual Report on Form 10-K for the fiscal year ended July 3, 2022.

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	Years Ended
												As						Goodwill
												Adjusted						and				As Adjusted
				Litigation		Transaction		Intangible		Restructuring cost/		(non-GAAP)						Intangible		Transaction		(non-GAAP)			%
	June 30, 2024			Settlement		Costs		Impairment		Severance		June 30, 2024			July 2, 2023			Impairment		Costs		July 2, 2023			Change
	(dollars in thousands)
Net revenues:
Consumer Floral & Gifts	$	849,791		$	-	$	-	$	-	$	-	$	849,791		$	920,510		$	-	$	-	$	920,510			-7.7	%
BloomNet		107,802											107,802			133,183							133,183			-19.1	%
Gourmet Foods & Gift Baskets		874,262											874,262			965,191							965,191			-9.4	%
Corporate		796											796			375							375			112.3	%
Intercompany eliminations		(1,230	)										(1,230	)		(1,406	)						(1,406	)		12.5	%
Total net revenues	$	1,831,421		$	-	$	-	$	-	$	-	$	1,831,421		$	2,017,853		$	-	$	-	$	2,017,853			-9.2	%
Gross profit:
Consumer Floral & Gifts	$	346,951						$	-	$	-	$	346,951		$	363,342		$	-	$	-	$	363,342			-4.5	%
		40.8	%										40.8	%		39.5	%						39.5	%
BloomNet		51,999											51,999			56,879							56,879			-8.6	%
		48.2	%										48.2	%		42.7	%						42.7	%
Gourmet Foods & Gift Baskets		334,870											334,870			336,764							336,764			-0.6	%
		38.3	%										38.3	%		34.9	%						34.9	%
Corporate		933											933			541							541			72.5	%
		117.2	%										117.2	%		144.3	%						144.3	%
Total gross profit	$	734,753		$	-	$	-	$	-	$	-	$	734,753		$	757,526		$	-	$	-	$	757,526			-3.0	%
		40.1	%		-		-		-		-		40.1	%		37.5	%		-		-		37.5	%
EBITDA (non-GAAP):
Segment Contribution Margin (non-GAAP) (a):
Consumer Floral & Gifts	$	67,278						$	19,762	$	630	$	87,670		$	95,535		$	-	$	-	$	95,535			-8.2	%
BloomNet		33,766									69		33,835			37,197							37,197			-9.0	%
Gourmet Foods & Gift Baskets		84,508									538		85,046			12,895			64,586				77,481			9.8	%
Segment Contribution Margin Subtotal		185,552			-		-		19,762		1,237		206,551			145,627			64,586		-		210,213			-1.7	%
Corporate (b)		(133,872	)		1,200		269				1,327		(131,076	)		(126,965	)				444		(126,521	)		-3.6	%
EBITDA (non-GAAP)		51,680			1,200		269		19,762		2,564		75,475			18,662			64,586		444		83,692			-9.8	%
Add: Stock-based compensation		10,688											10,688			8,334							8,334			28.2	%
Add: Compensation charge related to NQDC Plan Investment Appreciation (Depreciation)		6,904											6,904			(822	)						(822	)		939.9	%
Adjusted EBITDA (non-GAAP) (c)	$	69,272		$	1,200	$	269	$	19,762	$	2,564	$	93,067		$	26,174		$	64,586	$	444	$	91,204			2.0	%

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(a) Segment performance is measured based on segment contribution margin or segment Adjusted EBITDA, reflecting only the direct controllable revenue and operating expenses of the segments, both of which are non-GAAP measurements. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead, described above, depreciation and amortization, other income (net), and other items that we do not consider indicative of our core operating performance.

(b) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as stock-based compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

(c) See reconciliation of the Company's net loss to adjusted EBITDA (non-GAAP) above.

Free Cash Flow

We define Free Cash Flow as net cash provided by operating activities, less capital expenditures. The Company considers Free Cash Flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of fixed assets, which can then be used to, among other things, invest in the Company’s business, make strategic acquisitions, strengthen the balance sheet and repurchase stock or retire debt. Free Cash Flow is a liquidity measure that is frequently used by the investment community in the evaluation of similarly situated companies. Since Free Cash Flow is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the Company’s cash balance for the period.

The following table reconciles net cash provided by operating activities, a GAAP measure, to free cash flow, a non-GAAP measure.

	Year ended
	June 30,			July 2,
	2024			2023
	(in thousands)
Net cash provided by operating activities	$	94,999		$	115,351
Capital expenditures		(38,632	)		(44,646	)
Free Cash Flow	$	56,367		$	70,705

Results of Operations

The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to June 30. Fiscal years 2024 and 2023, which ended on June 30, 2024 and July 2, 2023, respectively, each consisted of 52 weeks. Fiscal year 2022, which ended on July 3, 2022, consisted of 53 weeks.

Net Revenues

	Years Ended
	June 30, 2024		% Change			July 2, 2023		% Change			July 3, 2022
	(dollars in thousands)
Net revenues:
E-Commerce	$	1,614,199		-7.5	%	$	1,744,622		-9.8	%	$	1,934,648
Other		217,222		-20.5	%		273,231		-	%		273,237
	$	1,831,421		-9.2	%	$	2,017,853		-8.6	%	$	2,207,885

Net revenues consist primarily of the selling price of the merchandise, service or outbound shipping charges, less discounts, returns and credits.

During the fiscal year ended June 30, 2024, net revenues decreased 9.2% in comparison to the prior year, due to lower order volume across all segments, reflecting a continuation of the trends that we have experienced over the last two years, as discretionary income remains pressured and consumers continue to moderate their spending.  Contributing to this decline was the prudent use of advertising spend, to balance the long-term goals of the Company with strategies to improve gross margins and tightly control operating expenses during this challenging economic environment.

During the fiscal year ended July 2, 2023, net revenues decreased 8.6% in comparison to the prior year, due to lower order volume across all segments, as discretionary income was pressured as discussed above, combined with the prudent use of promotional offerings and advertising campaigns.

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Disaggregated revenue by channel follows:

Years Ended
	Consumer Floral &														Gourmet Foods &							Corporate and
	Gifts							BloomNet							Gift Baskets							Eliminations						Consolidated
	June 30,		July 2,		%			June 30,		July 2,		%			June 30,		July 2,		%			June 30,			July 2,			June 30,			July 2,			%
	2024		2023		Change			2024		2023		Change			2024		2023		Change			2024			2023			2024			2023			Change
	(dollars in thousands)
Net revenues
E-commerce	$	840,569	$	911,302		-7.8	%	$	-	$	-		-		$	773,630	$	833,320		-7.2	%	$	-		$	-		$	1,614,199		$	1,744,622			-7.5	%
Other		9,222		9,208		0.2	%		107,802		133,183		-19.1	%		100,632		131,871		-23.7	%		(434	)		(1,031	)		217,222			273,231			-20.5	%
Total net revenues	$	849,791	$	920,510		-7.7	%	$	107,802	$	133,183		-19.1	%	$	874,262	$	965,191		-9.4	%	$	(434	)	$	(1,031	)	$	1,831,421		$	2,017,853			-9.2	%
Other revenues detail
Retail and other		9,222		9,208		0.2	%		-		-		-			9,534		9,751		-2.2	%		-			-			18,756			18,959			-1.1	%
Wholesale		-		-		-			42,362		50,075		-15.4	%		91,098		122,120		-25.4	%		-			-			133,460			172,195			-22.5	%
BloomNet services		-		-		-			65,440		83,108		-21.3	%		-		-		-			-			-			65,440			83,108			-21.3	%
Corporate		-		-		-			-		-		-			-		-		-			796			375			796			375			112.3	%
Eliminations		-		-		-			-		-		-			-		-		-			(1,230	)		(1,406	)		(1,230	)		(1,406	)		12.5	%
Total other revenues	$	9,222	$	9,208		0.2	%	$	107,802	$	133,183		-19.1	%	$	100,632	$	131,871		-23.7	%	$	(434	)	$	(1,031	)	$	217,222		$	273,231			-20.5	%

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Revenue by sales channel:

● E-commerce revenues (combined online and telephonic) decreased 7.5% during fiscal 2024, primarily as a result of a decline in demand for “Everyday” gifts across all our segments, attributable to the macro-economic conditions noted above, which have negatively impacted consumer discretionary spending, combined with planned reductions in advertising spend. Lower order volumes (18.8 million, -9.9% vs. prior year) were slightly offset by higher average order value ($85.70, +2.7% vs prior year) as a result of product mix trending into higher price point items, including bundles, and customer mix with higher income customers buying at a higher rate than lower income customers.   E-commerce revenues decreased 9.8% during fiscal 2023, primarily as a result of a decline in demand due to the macro-economic conditions noted above, which have negatively impacted consumer discretionary spending, combined with planned reductions in advertising spend. Lower order volumes (20.9 million, -14.9% vs. prior year) were slightly offset by higher average order value ($83.42, +5.9% vs prior year) as the Company prioritized earnings over sales goals, strategically increasing price points where possible in a challenging economic environment, to help offset rising costs.

● Other revenues are comprised of the Company’s BloomNet segment, as well as the wholesale and retail channels of its 1-800-Flowers.com Consumer Floral & Gifts and Gourmet Foods & Gift Baskets segments.   Other revenues decreased 20.5% during fiscal 2024 primarily due to lower order volume from big box retailers, as well as lower BloomNet Wholesale and Service revenues.  The lower service revenues were due to lower shop-to-shop volumes.   Other revenues were consistent with prior year during fiscal 2023 as lower BloomNet revenues attributable to a decline in wholesale product, transaction and directory sales, were offset by increased wholesale product demand within the Gourmet Foods & Gift Baskets segment, as consumers returned to in person “brick-and-mortar” shopping.

Revenue by segment:

Consumer Floral & Gifts, – this segment, which includes the operations of the 1-800-Flowers.com, as well as PersonalizationMall, Alice’s Table, and Things Remembered brands derives revenue primarily from the sale of consumer floral products and gifts through its e-commerce sales channels (telephonic and online sales), retail stores, and royalties from its franchise operations.

Net revenues decreased 7.7% during fiscal 2024, due to the continued reduction of “Everyday” product demand, and weaker than anticipated Valentine’s Day and Mother’s Day demand, as consumers’ available discretionary income remains strained in the current inflationary environment, combined with planned reductions in advertising spend, as our brands focused their efforts on improving gross margin and operating spend efficiency, in the face of softening demand. Despite these challenges, the 1-800-Flowers and PersonalizationMall brands were able to maintain much of the sales gains achieved during the pandemic and drive market share gains as a result of increased recognition and relevance for gifting and connective occasions and continued emphasis on existing customers as our Celebrations Passport loyalty program has increased cross-brand frequency, retention, and customer lifetime value.

Net revenues decreased 13.1% during fiscal 2023, due to the reduction of “Everyday” product demand, and weaker Valentine’s Day and Mother’s Day demand, as discussed above, combined with planned reductions in advertising spend.

BloomNet – revenues in this segment are derived from membership fees, as well as other product and service offerings to florists.

Net revenues decreased 19.1% during fiscal 2024, due to soft wholesale product sales, as the result of weakness in demand across the industry and lower Service revenue.  The lower service revenue was attributable to reduced membership/transaction fee revenues, as well as lower florist-to-florist revenue associated with a decline in order volume processed through the network, and lower directory services ad revenues.

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Net revenues decreased 8.6% during fiscal 2023 due to soft wholesale product sales, as well as service revenues attributable to reduced membership/transaction fee revenues associated with a decline in order volume processed through the network, and lower directory services ad revenues. 

Gourmet Foods & Gift Baskets – this segment includes the operations of Harry & David, Wolferman’s Bakery, Cheryl’s Cookies, The Popcorn Factory, 1-800-Baskets.com/DesignPac, Shari’s Berries, and Vital Choice. Revenue is derived from the sale of gourmet fruits, cookies, baked gifts, premium chocolates and confections, gourmet popcorn, gift baskets, dipped berries, prime steaks, chops, and fish, through the Company’s e-commerce sales channels (telephonic and online sales) and company-owned and operated retail stores under the Harry & David and Cheryl’s Cookies brand names, as well as wholesale operations.

Net revenues decreased 9.4% during fiscal 2024, as e-commerce declined 7.2% due to lower consumer demand, as a result of macro-economic weakness, which has significantly reduced “Everyday” occasion volumes, combined with planned reductions in advertising spend, as the brands focused their efforts on improving gross margins and operating spend efficiency in the face of softening demand. The unfavorable revenue trend was attributable to lower order volume, partially offset by favorable average order value as a result of product mix including more bundles and other higher priced offerings as higher income customers continued to buy at a higher rate. Wholesale/Retail channel revenues were unfavorable to prior year primarily due to lower order volume from big box retailers. 

Net revenues decreased 3.9% during fiscal 2023 due to lower e-commerce consumer demand, as a result of macro-economic weakness discussed above, combined with planned reductions in advertising spend. The unfavorable revenue trend was attributable to lower order volume, partially offset by favorable average order value as a result of strategic price increases and product mix, although promotional activity was increased in order to reduce inventory levels. This segment has seen the most dramatic reductions in “EveryDay” volumes, due to the disproportionate impact of the macro-economic conditions noted above, combined with the fact that it also experienced the highest growth rates during the Pandemic when food gifts/self-consumption peaked. Wholesale/Retail channel revenues were slightly favorable to prior year as consumers returned to in person “brick-and-mortar” shopping.

Gross Profit

	Years Ended
	June 30, 2024			% Change			July 2, 2023			% Change			July 3, 2022
	(dollars in thousands)
Gross profit	$	734,753			-3.0	%	$	757,526			-7.8	%	$	821,738
Gross margin %		40.1	%					37.5	%					37.2	%

Gross profit consists of net revenues less cost of revenues, which is comprised primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third parties, and associated costs, including inbound and outbound shipping charges. Additionally, cost of revenues includes labor and facility costs related to direct-to-consumer and wholesale production operations, as well as payments made to sending florists related to order volume referred through the Company’s BloomNet network.

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Gross profit decreased 3.0% during fiscal 2024 due to the lower revenues noted above, partially offset by a higher gross margin percentage, driven by favorable product mix, lower freight costs, a decline in commodity costs, and the Company’s logistics optimization efforts. Gross margins improved throughout the year ending at 40.1%; a 260-basis point improvement over fiscal 2023.  

Gross profit decreased 7.8% during fiscal 2023 due to the lower revenues noted above, partially offset by a higher gross margin percentage, driven by improvements across all three segments. Although the Company continued to face inflationary pressures in the form of higher commodity costs (although certain commodities began declining during our third quarter), fuel and related third party shipping rates, in addition to the challenges required to work down inventory levels, rates on ocean containers have come down significantly off of their Fiscal 2022 peak, and the Company has focused on improving the variables within its control, implementing strategic initiatives designed to mitigate the impact of these factors, including pricing initiatives across our product assortment, implementing logistics optimization programs to enhance our outbound shipping operations and manage rising third-party shipping costs and deploying automation to increase throughput and efficiency and address the high cost of labor.

Consumer Floral & Gifts segment – Gross profit in fiscal 2024  decreased in comparison to prior year by 4.5%, due to the unfavorable revenues noted above, partially offset by favorable gross profit percentage attributable to favorable product mix into higher margin direct fulfilled sales, favorable fulfillment costs, as well as lower inbound and outbound shipping cost.

Gross profit in fiscal 2023 decreased in comparison to prior year by 12.8%, due to the unfavorable revenues noted above, partially offset by favorable gross profit percentage attributable to favorable product mix, strategic pricing initiatives, reflected in the higher average order value, as well as favorable rates for ocean freight, partially offset by higher outbound shipping costs and higher labor rates.

BloomNet segment – Gross profit in fiscal 2024 from the BloomNet segment decreased in comparison to prior year by 8.6%, due to the unfavorable revenues noted above, partially offset by an increase in gross margin percentage. Gross margin percentage was higher than prior year due to lower florist rebates, which was driven by the lower shop-to-shop volume mainly from partners that carried higher contracted rates.  In addition, wholesale margins, improved as a result of strategic pricing initiatives and lower cost of merchandise due to more favorable ocean freight rates.

Gross profit in fiscal 2023 from the BloomNet segment decreased in comparison to prior year by 7.6%, due to the unfavorable revenues noted above, partially offset by an increase in gross margin percentage. Gross margin percentage was higher than prior year due to improvements in wholesale margins, as a result of strategic pricing initiatives and favorable ocean freight costs, partially offset by higher outbound shipping rates, and higher florist rebates due to higher shop-to-shop volume from senders.

Gourmet Foods & Gift Baskets segment – Gross profit in fiscal 2024 decreased in comparison to prior year by 0.6%, due to the unfavorable revenues noted above, partially offset by favorable gross profit percentage. The favorable gross profit percentage was primarily due to lower delivery and shipping costs as logistical initiatives allowed the group to decrease shipping costs. Favorable cost of merchandise (favorable inbound ocean freight and lower commodity costs), along with the Company's inventory and labor optimization efforts, also contributed to the improved margin percentage.  In addition, the brand benefited from favorable product mix due to the continued gap in buying behavior of higher income customers continuing to purchase higher priced merchandise with strong margins, while lower income customers continue to tighten their discretionary spending.

Gross profit in fiscal 2023 was unfavorable in comparison to prior year by 1.9%, due to the unfavorable revenues noted above, partially offset by favorable gross profit percentage. The favorable gross profit percentage was primarily attributable to lower inbound/ocean freight costs and production efficiencies resulting from fulfillment automation projects, partially offset by continued inflationary pressures on certain commodity costs, and increased markdowns to reduce inventory positions.

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Marketing and Sales Expense

	Years Ended
	June 30, 2024			% Change			July 2, 2023			% Change			July 3, 2022
	(dollars in thousands)
Marketing and sales	$	485,016			-3.2	%	$	500,840			-12.4	%	$	571,661
Percentage of sales		26.5	%					24.8	%					25.9	%

Marketing and sales expense consists primarily of advertising and promotional expenditures, catalog costs, online portal and search costs, retail store and fulfillment operations (other than costs included in cost of revenues) and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities. 

Marketing and sales expense decreased 3.2% during fiscal 2024 due to lower variable portal expenses and labor efficiencies, which was partially offset by higher general advertising expenses, as the brands reallocated dollars from less effective bottom of the funnel advertising to other areas to generate additional revenue in a challenging and competitive environment. 

Marketing and sales expense decreased 12.4% during fiscal 2023 due to variable components associated with lower revenues, combined with reduced, but more efficient advertising spend (as the brands focused their efforts on driving profitable volume and servicing their most loyal customers during a period when discretionary purchases are still under heavy pressure), and expense optimization efforts.

Technology and Development Expense

	Years Ended
	June 30, 2024			% Change			July 2, 2023			% Change			July 3, 2022
	(dollars in thousands)
Technology and development	$	60,235			-0.8	%	$	60,691			7.3	%	$	56,561
Percentage of sales		3.3	%					3.0	%					2.6	%

Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, design, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment, and database systems.

Technology and development expenses decreased by 0.8% during fiscal 2024, primarily due to reduced labor and consulting costs, offset in part by increased maintenance and support for the Company's technology platform.

Technology and development expenses increased by 7.3% during fiscal 2023, primarily due to higher maintenance and support for the Company’s technology platform, as well as higher labor costs due to annual increases.

During the fiscal years 2024, 2023 and 2022, the Company expended $86.8 million, $85.8 million and $83.2 million, respectively, on technology and development, of which $26.6 million, $25.1 million and $26.6 million, respectively, has been capitalized.

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General and Administrative Expense

	Years Ended
	June 30, 2024			% Change			July 2, 2023			% Change			July 3, 2022
	(dollars in thousands)
General and administrative	$	118,060			4.7	%	$	112,747			10.2	%	$	102,337
Percentage of sales		6.4	%					5.6	%					4.6	%

General and administrative expense consists of payroll and other expenses in support of the Company’s executive, finance and accounting, legal, human resources and other administrative functions, as well as professional fees and other general corporate expenses.

General and administrative expense increased 4.7% during fiscal 2024, primarily due to higher labor costs due to a change in the value of the Company’s NQDC investments - refer to equal offset in “Other expense (income), net”, as well as severance costs related to an enterprise reduction in workforce.  This was partially offset by lower professional fees related to litigation and acquisition costs, and lower bad debts expense primarily related to reserves for certain big box retailers and florists taken in fiscal 2023.

General and administrative expense increased 10.2% during fiscal 2023, primarily due to: (i) higher labor costs due to a change in the value of the Company’s NQDC investments - refer to equal offset in “Other expense (income), net”, (ii) higher professional fees due to litigation costs, and (iii) higher bad debts expense primarily related to reserves for certain big box retailers and florists.

Depreciation and Amortization

	Years Ended
	June 30, 2024			% Change			July 2, 2023			% Change			July 3, 2022
	(dollars in thousands)
Depreciation and amortization	$	53,752			0.1	%	$	53,673			9.4	%	$	49,078
Percentage of sales		2.9	%					2.7	%					2.2	%

Depreciation and amortization expense for fiscal 2024 is in-line with the prior year.

Depreciation and amortization expense increased 9.4% during fiscal 2023, due to recent increases in distribution facility automation projects, and IT-related e-commerce/platform enhancements, as well as incremental depreciation and amortization associated with recent acquisitions.

Goodwill and Intangible Impairment

	Years Ended
	June 30, 2024		% Change			July 2, 2023		% Change			July 3, 2022
	(dollars in thousands)
Goodwill and intangible impairment	$	19,762		-69.4	%	$	64,586		-	%	$	-

During fiscal 2024, the Company recorded a non-cash impairment charge of $19.8 million related to its PersonalizationMall trademark, due to a decline in the actual and projected revenue, combined with a higher discount rate resulting from the higher interest rate environment. 

During fiscal 2023, the Company recorded a non-cash impairment charge of $64.6 million related to its Gourmet Foods & Gift Baskets reporting unit. The Company fully impaired the related goodwill and partially impaired certain tradenames within the reporting unit.

See Note 6 in Part IV, Item 15 for additional information.

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Interest Expense, net

	Years Ended
	June 30, 2024		% Change			July 2, 2023		% Change			July 3, 2022
	(dollars in thousands)
Interest expense, net	$	10,623		-3.0	%	$	10,946		93.2	%	$	5,667

Interest expense, net consists primarily of interest expense and amortization of deferred financing costs attributable to the Company’s credit facility (See Note 9 in Part IV, Item 15 for details), net of income earned on the Company’s available cash balances.

Interest expense, net in fiscal 2024 is in-line with the prior year.

Interest expense, net increased 93.2% during fiscal 2023, due to higher interest rates and higher working capital borrowings during the year, partially offset by favorable interest earned on available cash balances.

Other expense (income), net

	Years Ended
	June 30, 2024			% Change			July 2, 2023		% Change			July 3, 2022
	(dollars in thousands)
Other expense (income), net	$	(6,793	)		-943.9	%	$	805		-84.9	%	$	5,332

Other (income), net during fiscal 2024 consists primarily of the gain on the Company's NQDC investments (for which the offsetting expense was recorded in the general and administration expense line item).

Other expense, net during fiscal 2023 consists primarily of a loss on the Company's NQDC investments (for which the offsetting credit was recorded in the general and administration expense line item).

Income Taxes

The Company recorded income tax expense of $0.2 million during fiscal 2024, an income tax benefit of $2.1 million in fiscal 2023, and income tax expense of $1.5 million in fiscal 2022, resulting in an effective tax rate of (3.4%), 4.4% and 4.8%, respectively. The Company’s effective tax rate for fiscal 2024 differed from the U.S. federal statutory rate of 21.0% primarily due to state taxes, increases in valuation allowances, and tax shortfalls related to stock-based compensation, partially offset by enhanced deductions and various tax credits.  The Company’s effective tax rate for fiscal 2023 differed from the U.S. federal statutory rate of 21.0% primarily due to the impact of the non-deductible portion of the Company’s impairment charge, as well as state income taxes and non-deductible expenses for executive compensation, tax shortfalls related to stock-based compensation, partially offset by enhanced deductions and various tax credits. The Company’s effective tax rate for fiscal 2022 differed from the U.S. federal statutory rate of 21.0% primarily due to excess tax benefits from stock-based compensation and various tax credits, partially offset by state income taxes and nondeductible expenses for executive compensation. Further impacting fiscal 2022, was a reduction in the Company’s valuation allowance, offset in part by the expiration of capital loss carryforwards, as well as enhanced deductions.

At June 30, 2024, the Company’s federal enhanced deduction carryforwards were $3.6 million, tax effected, which if not utilized will begin to expire in 2027.  At June 30, 2024, the Company’s state and foreign net operating loss carryforwards were $2.9 million and $1.3 million, tax effected, respectively, which if not utilized will begin to expire in fiscal 2025 and fiscal 2034, respectively.

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Liquidity and Capital Resources

Liquidity and borrowings

The Company’s principal sources of liquidity are cash on hand, cash flows generated from operations and borrowings available under the Company’s credit agreement (see Note 9 in Part IV, Item 15 for details). At June 30, 2024, the Company had working capital of $157.9 million, including cash and cash equivalents of $159.4 million, compared to working capital of $152.9 million, including cash and cash equivalents of $126.8 million at July 2, 2023.

As of June 30, 2024, there were no borrowings outstanding under the Company’s Revolver.

Due to the seasonal nature of the Company’s business, and its continued expansion into non-floral products, the Thanksgiving through Christmas holiday season, which falls within the Company’s second fiscal quarter, generates over 40% of the Company’s annual revenues, and all of its earnings. Due to the number of major floral gifting occasions, including Mother’s Day, Valentine’s Day, Easter and Administrative Professionals Week, revenues also have historically risen during the Company’s fiscal third and fourth quarters in comparison to its fiscal first quarter.

During the first two quarters of fiscal 2024, the Company borrowed under its revolving credit agreement in order to fund pre-holiday manufacturing and inventory procurement requirements, with borrowings peaking at $82.0 million in November 2023. Cash generated from operations during the Christmas holiday shopping season enabled the Company to repay the borrowings under the Revolver in December 2023. 

On June 27, 2023, the Company entered into a Third Amended and Restated Credit Agreement to, among other modifications: (i) increase the amount of the outstanding term loan from approximately $150 million to $200 million, (ii) decrease the amount of the commitments in respect of the revolving credit facility from $250 million to $225 million, (iii) extend the maturity date of the outstanding term loan and the revolving credit facilities by approximately 48 months to June 27, 2028, and (iv) increase the applicable interest rate margins for SOFR and base rate loans by 25 basis points (See Note 9 – Long-Term Debt in Item 15 for details).

Based on our year-end cash balances, including the incremental term loan referenced above, combined with projected cash flows, the Company expects to borrow against its Revolver to fund pre-holiday manufacturing and inventory purchases during the first quarter of fiscal 2025. The Company expects to be able to repay all working capital borrowings prior to the end of the second quarter of fiscal 2025.

While we believe that our sources of funding will be sufficient to meet our anticipated operating cash needs for at least the next twelve months, any projections of future cash needs and cash flows are subject to substantial uncertainty. We continually evaluate, and will, from time to time, consider the acquisition of, or investment in, complementary businesses, products, services, capital infrastructure, and technologies, which might affect our liquidity requirements or cause us to require additional financing.

Cash Flows

Net cash provided by operating activities of $95.0 million for fiscal 2024 was primarily attributable to the Company’s net loss, adjusted by a non-cash charge for an intangible asset impairment, depreciation and amortization, bad debt expense and stock-based compensation, net of deferred income taxes, combined with net working capital generated primarily from a decrease in inventories, and an increase in accounts payable and accrued expenses.

Net cash used in investing activities of $42.3 million was attributable to capital expenditures primarily related to the Company's technology and automation initiatives, and the acquisition of Card Isle as noted above.

Net cash used in financing activities of $20.1 million related to net repayment of bank borrowings of $10.0 million, and the acquisition of $10.4 million of treasury stock.

Free Cash Flow

Free cash flow was $56.4 million for fiscal 2024, compared with free cash flow of $70.7 million for fiscal 2023, a decrease of $14.3 million primarily driven by a decrease in cash flows from operations. Refer to "Definitions of non-GAAP financial measures" for reconciliation of non-GAAP results to applicable GAAP results.

Stock Repurchase Program

See Item 5 in Part II for details.

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Contractual Obligations

At June 30, 2024, the Company’s contractual obligations consist of:

● Long-term debt obligations – payments due under the Company’s Credit Agreement (See Note 9 – Long-Term Debt in Item 15 for details).

● Operating lease obligations – payments due under the Company’s long-term operating leases (See Note 16 – Leases in Item 15 for details).

● Purchase commitments – consisting primarily of inventory and IT- related equipment purchase orders and license agreements made in the ordinary course of business – see below for the contractual payments due by period.

	Payments due by period
	(in thousands)
	Fiscal		Fiscal		Fiscal		Fiscal		Fiscal
	2025		2026		2027		2028		2029		Thereafter		Total
Purchase commitments	$	156,940	$	9,722	$	5,202	$	3,447	$	3,447	$	-	$	178,758

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Critical Accounting Estimates

The Company’s discussion and analysis of its financial position and results of operations are based upon the consolidated financial statements of 1-800-FLOWERS.COM, Inc., which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management evaluates its estimates on an ongoing basis and bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. We consider accounting estimates to be critical if both: (i) the nature of the estimate or assumption is material due to the levels of subjectivity and judgment involved, and (ii) the impact within a reasonable range of outcomes of the estimate and assumption is material to the Company’s financial condition. Our critical accounting estimates relate to goodwill, other intangible assets and income taxes. Management of the Company has discussed the selection of critical accounting estimates and the effect of estimates with the audit committee of the Company’s board of directors.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not amortized, but it is subject to an annual assessment for impairment, which the Company performs during the fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist. The Company tests goodwill for impairment at the reporting unit level. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components.

In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test (“Step 1”). Under the Step 0 test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the Step 1 quantitative test is necessary.

Step 1 of the quantitative test requires comparison of the fair value of each of the reporting units to the respective carrying value. If the carrying value of the reporting unit is less than the fair value, no impairment exists. Otherwise, the Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method, the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciles the aggregate fair values of its reporting units determined in the first step (as described above) to its current market capitalization, allowing for a reasonable control premium.  See Note 6 – Goodwill and Intangible Assets, in Part IV, Item 15, for further information.

Other Intangibles, net

Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 to 16 years, while indefinite-lived intangible assets are not amortized.

Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting future cash flows.

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The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth quarter, or whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. In applying the impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test. Under the Step 0 test, the Company assesses qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors may include, but are not limited, to economic conditions, industry and market considerations, cost factors, financial performance, legal and other entity and asset specific events. If, after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the indefinite-lived intangible asset is impaired, then performing the quantitative test is necessary. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating a fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, impairment is recognized for the difference. To determine fair value of other indefinite-lived intangible assets, the Company uses an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Other indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

See Note 6 – Goodwill and Intangible Assets, in Part IV, Item 15, for further information.

Income Taxes

The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company also has net operating loss carryforwards and credit carryforwards in multiple jurisdictions and has recognized deferred assets for those losses and credits.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements on a particular tax position are measured based on the largest benefit that has a greater than a 50% likelihood of being realized upon settlement. The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. 

See Note 11– Income Taxes, in Part IV, Item 15, for further information.

Recently Issued Accounting Pronouncements  

See Note 2 in Part IV, Item 15 for details regarding the impact of accounting standards that were recently issued on our consolidated financial statements.

38

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to market risk from the effect of interest rate changes and changes in the market values of its investments.

Interest Rate Risk

The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s investment of available cash balances and its long-term debt. The Company generally invests its cash and cash equivalents in investment grade corporate and U.S. government securities. Borrowings under the Company’s credit facility bear interest at a variable rate, plus an applicable margin, and therefore expose the Company to market risk for changes in interest rates. The effect of a 50 basis point increase in current interest rates on the Company’s interest expense would have been approximately $1.1 million during the fiscal year ended June 30, 2024.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Annual Financial Statements: See Part IV, Item 15 of this Annual Report on Form 10-K.

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as of June 30, 2024. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have each concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2024.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the Company’s principal executive and principal financial officers and effectuated by the Company’s board of directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and includes those policies and procedures that:

● pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made in accordance with authorization of management and directors of the Company; and

● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management, including the Company’s Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company’s internal control over financial reporting based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, management concluded that the Company’s internal control over financial reporting was effective as of June 30, 2024.

The Company’s independent registered public accounting firm, BDO USA, P.C., audited the effectiveness of the Company’s internal control over financial reporting as of June 30, 2024. BDO USA, P.C.’s report on the effectiveness of the Company’s internal control over financial reporting as of June 30, 2024 is set forth below.

Limitations on Effectiveness of Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, as specified above. Our management recognizes that any control system, no matter how well designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurance that its objectives will be met.

Changes in Internal Control Over Financial Reporting

There was no change in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act), during the three months ended June 30, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

39

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

1-800-FLOWERS.COM, Inc.

Jericho, NY

Opinion on Internal Control over Financial Reporting

We have audited 1-800-FLOWERS.COM, Inc.'s (the “Company’s”) internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of June 30, 2024 and July 2, 2023, the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity, and cash flows for each of the three years in the period ended June 30, 2024, and the related notes and schedule and our report dated September 6, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Item 9A, Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit of internal control over financial reporting in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ BDO USA, P.C.

Melville, New York

September 6, 2024

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Item 9B. OTHER INFORMATION

Rule 10b5-1 Plans

During the three months ended June 30, 2024, none of the directors or executive officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-rule 10b5-1 trading arrangement", as defined in the item 408 of Regulation S-K.

Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by Item 10 of Part III with respect to directors, executive officers, audit committee and audit committee financial experts of the Company and Section 16(a) beneficial ownership reporting compliance will be included in our Proxy Statement relating to our 2024 annual meeting of stockholders and is incorporated herein by reference. 

The Company maintains a Code of Business Conduct and Ethics, which is applicable to all directors, officers and employees on the Investor Relations-Corporate Governance tab of the Company’s investor relations website (investor.1800flowers.com), which is also accessible through a link at the bottom of the main Company page at www.1800flowers.com. Any amendment or waiver to the Code of Business Conduct and Ethics that applies to our directors or executive officers will be posted on our website or in a report filed with the SEC on Form 8-K to the extent required by applicable law or the regulations of any exchange applicable to the Company. A copy of the Code of Business Conduct and Ethics is available without charge upon written request to: Investor Relations, 1-800-FLOWERS.COM, Inc., Two Jericho Plaza, Suite 200, Jericho, New York 11753.

Item 11. EXECUTIVE COMPENSATION

The information required by Item 11 of Part III will be included in our Proxy Statement relating to our 2024 annual meeting of stockholders and is incorporated herein by reference.  

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by Item 12 of Part III will be included in our Proxy Statement relating to our 2024 annual meeting of stockholders and is incorporated herein by reference. 

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by Item 13 of Part III will be included in our Proxy Statement relating to our 2024 annual meeting of stockholders and is incorporated herein by reference. 

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by Item 14 of Part III will be included in our Proxy Statement relating to our 2024 annual meeting of stockholders and is incorporated herein by reference. 

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PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a) (1) Index to Consolidated Financial Statements:
	Page
Report of Independent Registered Public Accounting Firm (BDO USA, P.C.; Melville, NY; PCAOB ID#243)	F-1
Consolidated Balance Sheets as of June 30, 2024 and July 2, 2023	F-2
Consolidated Statements of Operations and Comprehensive Income (Loss) for the years endedJune 30, 2024, July 2, 2023 and July 3, 2022	F-3
Consolidated Statements of Stockholders’ Equity for the years ended June 30, 2024, July 2, 2023 and July 3, 2022	F-4
Consolidated Statements of Cash Flows for the years ended June 30, 2024, July 2, 2023 and July 3, 2022	F-5
Notes to Consolidated Financial Statements	F-6
(a) (2) Index to Financial Statement Schedule:
Schedule II- Valuation and Qualifying Accounts	F-28
All other information and financial statement schedules are omitted because they are not applicable, or required, or because the required information is included in the consolidated financial statements or notes thereto.

(a) (3) Index to Exhibits

Exhibits marked with an asterisk (*) are incorporated by reference to exhibits or appendices previously filed with the SEC, as indicated by the reference in parentheses. All other exhibits are filed herewith. Exhibits 10.1, 10.2, 10.3, 10.4. 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11, 10.14, 10.15, 10.16, and 10.17 are management contracts or compensatory plans or arrangements.

Exhibit	Description
*2.1	Equity Purchase Agreement dated as of February 14, 2020, by an among 1-800-Flowers.com, Inc., 800-Flowers, Inc. PersonalizationMall.com, LLC, and Bed Bath & Beyond Inc. (Current Report on Form 8-K filed on February 18, 2020, Exhibit 2.1)
*3.1	Third Amended and Restated Certificate of Incorporation. (Quarterly Report on Form 10-Q filed on February 10, 2017, Exhibit 3.1)
*3.2	Amendment No. 1 to Third Amended and Restated Certificate of Incorporation. (Registration Statement on Form S-1/A (No. 333-78985) filed on July 22, 1999, Exhibit 3.2)
*3.3	Amendment No. 2 to Third Amended and Restated Certificate of Incorporation. (Current Report on Form 8-K filed on December 15, 2016, Exhibit 3.1)
*3.4	Second Amended and Restated By-laws. (Current Report on Form 8-K filed on April 29, 2019, Exhibit 3.2)
*4.1	Specimen Class A common stock certificate. (Registration Statement on Form S-1/A (No. 333-78985 filed on July 9, 1999, Exhibit 4.1)
*4.2	Description of Securities. (Annual Report on Form 10-K filed on September 13, 2019, Exhibit 4.2)
*10.1	Employment Agreement made October 4, 2016, effective as of July 4, 2016, between 1-800-Flowers.com, Inc. and James F. McCann (Current report on form 8-K filed on October 6, 2016, Exhibit 10.1)
*10.2	Employment Agreement made October 4, 2016, effective as of July 4, 2016, between 1-800-Flowers.com, Inc. and Christopher G. McCann (Current report on form 8-K filed on October 6, 2016, Exhibit 10.2)
*10.3	Section 16 Executive Officer’s Bonus Plan (as amended and restated as of September 14, 2016) (Quarterly Report on Form 10-Q filed on February 10, 2017, Exhibit 10.2)
*10.4	Nonqualified Supplemental Deferred Compensation Plan dated December 21, 2010 (Quarterly Report on Form 10-Q filed on November 14, 2016, Exhibit 10.24)
*10.5	2003 Long Term Incentive and Share Award Plan (as amended and restated as of October 15, 2020) (Proxy Statement on Form 14(a) filed on December 9, 2020, Annex A).
*10.6	Form of Restricted Share Agreement under 2003 Long Term Incentive and Share Award Plan. (Annual Report on Form 10-K for the fiscal year ended June 29, 2008 filed on September 12, 2008, Exhibit 10.15)
*10.7	Form of Incentive Stock Option Agreement under 2003 Long Term Incentive and Share Award Plan. (Annual Report on Form 10-K for the fiscal year ended June 29, 2008 filed on September 12, 2008, Exhibit 10.16)
*10.8	Form of Non-statutory Stock Option Agreement under 2003 Long Term Incentive and Share Award Plan. (Annual Report on Form 10-K for the fiscal year ended June 29, 2008 filed on September 12, 2008, Exhibit 10.17)
*10.9	Form of Restricted Share Agreement under 2003 Long Term Incentive and Share Award Plan (Quarterly Report on Form 10-Q filed on February 10, 2012, Exhibit 10.20)
*10.10	Form of Performance Restricted Share Agreement under 2003 Long Term Incentive and Share Award Plan (Quarterly Report on Form 10-Q filed on February 10, 2012, Exhibit 10.21)
*10.11	Form of Non-Statutory Stock Option Agreement under 2003 Long Term Incentive and Share Award Plan (Quarterly Report on Form 10-Q filed on February 10, 2012, Exhibit 10.22)
*10.12	Amendment to Equity Purchase Agreement dated July 20, 2020 (Current Report on Form 8-K filed on July 22, 2020, Exhibit 10.1)
*10.13	Third Amended and Restated Credit Agreement, dated as of June 27, 2023, among 1-800-FLOWERS.COM, INC., the subsidiary borrowers party thereto, the subsidiary guarantors party thereto, the lenders party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (Current Report on Form 8-K filed on June 28, 2023, Exhibit 10.1)
*10.14	James F. McCann Consent Letter, dated June 29, 2023 (Annual Report on Form 10-K for the fiscal year ended July 2, 2023 filed on September 15, 2023, Exhibit 10.14)
*10.15	Christopher G. McCann Resignation Letter, dated June 29, 2023 (Annual Report on Form 10-K for the fiscal year ended July 2, 2023 filed on September 15, 2023, Exhibit 10.15)
*10.16	Consulting Agreement, dated as of December 20, 2023, between 1-800-FLOWERS.COM, Inc., and Hanft Ideas LLC and Adam Hanft. (Quarterly Report on Form 10-Q filed on February 8, 2024, Exhibit 10.1)
*10.17	Appointment Letter from 1-800-FLOWERS.COM, Inc. to Christopher G. McCann, dated December 31, 2023 (Current Report on Form 8-K filed on January 2, 2024, Exhibit 99.1)
19.1	Policy on the Prevention of Insider Trading for 1-800-FLOWERS.COM, Inc.
21.1	Subsidiaries of the Registrant.
23.1	Consent of Independent Registered Public Accounting Firm.
31.1	Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97.1	1-800-FLOWERS.COM, Inc. Clawback Policy
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Document
101.PRE	Inline XBRL Taxonomy Definition Presentation Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Item 16. FORM 10-K SUMMARY

Not applicable.

42

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: September 6, 2024 1-800-FLOWERS.COM, Inc.   By: /s/ James F. McCann James F. McCann Executive Chairman, Chief Executive Officer (Principal Executive Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated below:

Dated: September 6, 2024	By: /s/ James F. McCann James F. McCann Executive Chairman, Chief Executive Officer (Principal Executive Officer)
Dated: September 6, 2024	By: /s/ William E. Shea William E. Shea Senior Vice President, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer)
Dated: September 6, 2024	By: /s/ Christopher G. McCann Christopher G. McCann Director
Dated: September 6, 2024	By: /s/ Celia R. Brown   Celia R. Brown Director
Dated: September 6, 2024	By: /s/ James A. Cannavino  James A. Cannavino Director
Dated: September 6, 2024	By: /s/ Dina M. Colombo Dina Colombo Director
Dated: September 6, 2024	By: /s/ Eugene F. DeMark Eugene F. DeMark Director
Dated: September 6, 2024	By: /s/ Leonard J. Elmore Leonard J. Elmore Director
Dated: September 6, 2024	By: /s/ Adam Hanft Adam Hanft Director
Dated: September 6, 2024	By: /s/ Stephanie Redish Hofmann   Stephanie Redish Hofmann Director
Dated: September 6, 2024	By: /s/ Christina Shim Christina Shim Director
Dated: September 6, 2024	By: /s/ Larry Zarin Larry Zarin Director

43

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders

1-800-FLOWERS.COM, Inc.

Jericho, NY

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of 1-800-FLOWERS.COM, Inc. (the “Company”) as of June 30, 2024 and July 2, 2023, the related consolidated statements of operations and comprehensive income (loss), stockholders’ equity, and cash flows for each of the three years in the period ended June 30, 2024, and the related notes and schedule (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024 and July 2, 2023 and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company's internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and our report dated September 6, 2024 expressed an unqualified opinion thereon.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Indefinite-lived Intangible Asset – PersonalizationMall Tradename

As described in Note 2 and Note 6 to the consolidated financial statements, the Company’s consolidated balance for trademarks with indefinite lives was $111.5 million as of June 30, 2024. During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. The Company’s impairment test for its PersonalizationMall tradename encompassed calculating the fair value of the asset and comparing that result to its carrying value. To determine the fair value, the Company used an income approach, the relief-from-royalty method. The quarterly assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.  The Company also performed a quantitative test during the fourth quarter of fiscal year 2024, which determined that the estimated fair value of the PersonalizationMall tradename exceeded its carrying value.

We identified the forecasted long-term terminal growth rate, discount rate, and royalty rate included in the relief-from-royalty method for the valuation of the PersonalizationMall tradename during the second and fourth quarter of fiscal year 2024 as a critical audit matter. The principal considerations for our determination included the subjectivity and judgment required to determine the forecasted long term terminal growth rate, discount rate and royalty rate. Auditing these elements involved especially challenging auditor judgment due to the nature and extent of audit effort required to address these matters, including the extent of specialized skills or knowledge needed.

The primary procedure we performed to address this critical audit matter included:

● Utilizing personnel with specialized skills and knowledge in valuation to assist in evaluating the reasonableness of the forecasted long-term terminal growth rate, discount rate and royalty rate.

We have served as the Company's auditor since 2014.

/s/ BDO USA, P.C.

Melville, NY

September 6, 2024

F-1

1-800-FLOWERS.COM, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)

	June 30, 2024			July 2, 2023
Assets
Current assets:
Cash and cash equivalents	$	159,437		$	126,807
Trade receivables, net		18,024			20,419
Inventories		176,591			191,334
Prepaid and other		31,680			34,583
Total current assets		385,732			373,143
Property, plant and equipment, net		223,789			234,569
Operating lease right-of-use assets		113,926			124,715
Goodwill		156,537			153,376
Other intangibles, net		116,216			139,888
Other assets		36,448			25,739
Total assets	$	1,032,648		$	1,051,430
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	80,005		$	52,588
Accrued expenses		121,303			141,914
Current maturities of long-term debt		10,000			10,000
Current portion of long-term operating lease liabilities		16,511			15,759
Total current liabilities		227,819			220,261
Long-term debt, net		177,113			186,391
Long-term operating lease liabilities		105,866			117,330
Deferred tax liabilities, net		19,402			31,134
Other liabilities		36,106			24,471
Total liabilities		566,306			579,587
Commitments and contingencies (Note 17)
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued		-			-
Class A common stock, $.01 par value, 200,000,000 shares authorized, 58,792,695 and 58,273,747 shares issued in 2024 and 2023, respectively		588			583
Class B common stock, $.01 par value, 200,000,000 shares authorized, 32,348,221 shares issued in 2024 and 2023		323			323
Additional paid-in capital		399,165			388,215
Retained earnings		264,978			271,083
Accumulated other comprehensive loss		(127	)		(170	)
Treasury stock, at cost, 21,645,290 and 20,565,875 Class A shares in 2024 and 2023, respectively, and 5,280,000 Class B shares in 2024 and 2023		(198,585	)		(188,191	)
Total stockholders’ equity		466,342			471,843
Total liabilities and stockholders’ equity	$	1,032,648		$	1,051,430

F-2

1-800-FLOWERS.COM, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Income (Loss)

(in thousands, except per share data)

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
Net revenues	$	1,831,421		$	2,017,853		$	2,207,885
Cost of revenues (excludes depreciation and amortization)		1,096,668			1,260,327			1,386,147
Gross profit		734,753			757,526			821,738
Operating expenses:
Marketing and sales		485,016			500,840			571,661
Technology and development		60,235			60,691			56,561
General and administrative		118,060			112,747			102,337
Depreciation and amortization		53,752			53,673			49,078
Goodwill and intangible impairment		19,762			64,586			-
Total operating expenses		736,825			792,537			779,637
Operating income (loss)		(2,072	)		(35,011	)		42,101
Interest expense, net		10,623			10,946			5,667
Other expense (income), net		(6,793	)		805			5,332
Income (loss) before income taxes		(5,902	)		(46,762	)		31,102
Income tax (benefit) expense		203			(2,060	)		1,492
Net income (loss)		(6,105	)		(44,702	)		29,610
Other comprehensive income (currency translation)		43			41			107
Comprehensive income (loss)	$	(6,062	)	$	(44,661	)	$	29,717
Basic net income (loss) per common share	$	(0.09	)	$	(0.69	)	$	0.46
Diluted net income (loss) per common share	$	(0.09	)	$	(0.69	)	$	0.45
Weighted average shares used in the calculation of net income (loss) per common share:
Basic		64,586			64,688			64,977
Diluted		64,586			64,688			65,617

F-3

1-800-FLOWERS.COM, Inc. and Subsidiaries

Consolidated Statements of Stockholders' Equity

Years ended June 30, 2024, July 2, 2023, and July 3, 2022

(in thousands, except share data)

																	Accumulated
	Common Stock										Additional			Retained			Other								Total
	Class A				Class B						Paid-in			Earnings			Comprehensive			Treasury Stock					Stockholders’
	Shares		Amount		Shares			Amount			Capital			(Deficit)			Loss			Shares		Amount			Equity
Balance at June 27, 2021		55,675,661	$	557		33,433,614		$	334		$	371,103		$	286,175		$	(318	)		24,105,841	$	(148,781	)	$	509,070
Net income		-		-		-			-			-			29,610			-			-		-			29,610
Translation adjustment		-		-		-			-			-			-			107			-		-			107
Stock-based compensation		805,028		8		-			-			7,939			-			-			-		-			7,947
Exercise of stock options		321,700		3		-			-			843			-			-			-		-			846
Conversion of Class B stock into Class A stock		904,000		9		(904,000	)		(9	)		-			-			-			-		-			-
Acquisition of Class A treasury stock		-		-		-			-			-			-			-			1,592,555		(38,171	)		(38,171	)
Balance at July 3, 2022		57,706,389	$	577		32,529,614		$	325		$	379,885		$	315,785		$	(211	)		25,698,396	$	(186,952	)	$	509,409
Net loss		-		-		-			-			-			(44,702	)		-			-		-			(44,702	)
Translation adjustment		-		-		-			-			-			-			41			-		-			41
Stock-based compensation		385,965		4		-			-			8,330			-			-			-		-			8,334
Conversion of Class B stock into Class A stock		181,393		2		(181,393	)		(2	)		-			-			-			-		-			-
Acquisition of Class A treasury stock		-		-		-			-			-			-			-			147,479		(1,239	)		(1,239	)
Balance at July 2, 2023		58,273,747	$	583		32,348,221		$	323		$	388,215		$	271,083		$	(170	)		25,845,875	$	(188,191	)	$	471,843
Net loss		-		-		-			-			-			(6,105	)		-			-		-			(6,105	)
Translation adjustment		-		-		-			-			-			-			43			-		-			43
Stock-based compensation		480,708		5		-			-			10,683			-			-			-		-			10,688
Exercise of stock options		38,240		-		-			-			329			-			-			-		-			329
Acquisition of Class A treasury stock		-		-		-			-			(62	)		-			-			1,079,415		(10,394	)		(10,456	)
Balance at June 30, 2024		58,792,695	$	588		32,348,221		$	323		$	399,165		$	264,978		$	(127	)		26,925,290	$	(198,585	)	$	466,342

F-4

1-800-FLOWERS.COM, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
Operating activities:
Net income (loss)	$	(6,105	)	$	(44,702	)	$	29,610
Reconciliation of net income (loss) to net cash provided by operating activities net of acquisitions:
Goodwill and intangible impairment		19,762			64,586			-
Depreciation and amortization		53,752			53,673			49,078
Amortization of deferred financing costs		724			1,834			1,269
Deferred income taxes		(11,732	)		(4,608	)		1,579
Bad debt expense (recoveries)		251			3,991			(411	)
Stock-based compensation		10,688			8,334			7,947
Other non-cash items		310			95			3,194
Changes in operating items:
Trade receivables		2,143			(597	)		(2,452	)
Inventories		14,572			57,591			(85,047	)
Prepaid and other		2,913			12,554			6,731
Accounts payable and accrued expenses		6,404			(38,623	)		(6,595	)
Other assets and other liabilities		1,317			1,223			286
Net cash provided by operating activities		94,999			115,351			5,189
Investing activities:
Acquisitions, net of cash acquired		(3,672	)		(6,151	)		(21,280	)
Capital expenditures		(38,632	)		(44,646	)		(66,408	)
Purchase of equity investments		-			(32	)		(2,000	)
Net cash used in investing activities		(42,304	)		(50,829	)		(89,688	)
Financing activities:
Acquisition of treasury stock		(10,394	)		(1,239	)		(38,171	)
Proceeds from exercise of employee stock options		329			-			846
Proceeds from bank borrowings		82,000			395,900			125,000
Repayment of bank borrowings		(92,000	)		(360,900	)		(145,000	)
Debt issuance costs		-			(2,941	)		(284	)
Net cash (used in) provided by financing activities		(20,065	)		30,820			(57,609	)
Net change in cash and cash equivalents		32,630			95,342			(142,108	)
Cash and cash equivalents:
Beginning of year		126,807			31,465			173,573
End of year	$	159,437		$	126,807		$	31,465

Supplemental Cash Flow Information:

- Interest paid amounted to $16.3 million, $12.8 million, and $4.6 million for the years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively.

- The Company paid income taxes of approximately $8.0 million, and $1.4 million, net of tax refunds, for the years ended June 30, 2024 and July 3, 2022, respectively and received refunds of approximately $8.8 million, net of tax payments, for the year ended July 2, 2023.

F- 5

 

1-800-FLOWERS.COM, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Note 1. Description of Business

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Scharffen Berger® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help its members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital on demand floral, culinary and other experiences to guests across the country and Card Isle®, an e-commerce greeting card service.

Note 2. Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of 1-800-FLOWERS.COM, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s net revenues from international sources were not material during fiscal years 2024, 2023 and 2022.

Fiscal Year

The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to June 30. Fiscal years 2024 and 2023, which ended on June 30, 2024 and July 2, 2023, respectively, each consisted of 52 weeks. Fiscal year 2022, which ended on July 3, 2022, consisted of 53 weeks.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements and commercial paper with maturities of three months or less when purchased.

Inventories

Inventories are valued at the lower of cost or net realizable value. Inventories are accounted for using a standard costing methodology, which approximates cost on a first-in, first-out basis.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method over the assets’ estimated useful lives. Amortization of leasehold improvements and capital leases is computed using the straight-line method over the shorter of the estimated useful lives or the initial lease terms. The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the software. Orchards in production, consisting of direct labor and materials, supervision and other items, are capitalized as part of capital projects in progress – orchards until the orchards produce fruit in commercial quantities, at which time they are reclassified to orchards in production. Estimated useful lives are periodically reviewed, and where appropriate, changes are made prospectively.

F- 6

 

The Company’s property, plant and equipment are depreciated using the following estimated lives:

Building and building improvements (years)	10 - 40
Leasehold improvements (years)	3 - 10
Furniture, fixtures and production equipment (years)	3 - 20
Software (years)	3 - 7
Orchards in production and land improvements (years)	15 - 45

Property, plant and equipment are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not amortized, but it is subject to an annual assessment for impairment, which the Company performs during the fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist. The Company tests goodwill for impairment at the reporting unit level. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components.

In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test (“Step 1”). Under the Step 0 test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the Step 1 quantitative test is necessary.

Step 1 of the quantitative test requires comparison of the fair value of each of the reporting units to the respective carrying value. If the carrying value of the reporting unit is less than the fair value, no impairment exists. Otherwise, the Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method, the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciles the aggregate fair values of its reporting units determined in the first step (as described above) to its current market capitalization, allowing for a reasonable control premium.

During Fiscal 2022, as a result of changes within the macroeconomic environment, geopolitical pressures and the Company’s financial performance and market capitalization, the Company performed a Step 1 analysis, which indicated that the fair values of the Consumer Floral & Gifts and Gourmet Foods & Gift Baskets reporting units exceeded their respective carrying amounts.

F- 7

 

During its quarterly assessment in the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred for its Gourmet Foods & Gift Baskets reporting unit. As such, the Company performed a Step 1 analysis of the reporting unit’s goodwill, intangibles and long-lived assets as of April 2, 2023, and fully impaired the related goodwill, and partially impaired certain tradenames within the reporting unit. The Company concluded that the definite-lived and other long-lived assets of the reporting unit were not impaired.

As of its annual impairment testing date during the fourth quarter of Fiscal 2023, the Company completed a step 0 analysis of its Consumer Floral & Gifts reporting unit, the only reporting unit with goodwill at the time, and concluded that it was not "more likely than not" that the fair value of its reporting unit was less than its carrying value.

As of its annual impairment testing date during the fourth quarter of Fiscal 2024, the Company completed a step 0 analysis of its Consumer Floral & Gifts and BloomNet reporting units, the only reporting units with goodwill, and concluded that it was not "more likely than not" that the fair values of its reporting units were less than their carrying values.  

See Note 6 – Goodwill and Intangible Assets for further information.

Other Intangibles, net

Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 to 16 years, while indefinite-lived intangible assets are not amortized.

Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting future cash flows.

The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth quarter, or whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. In applying the impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test. Under the Step 0 test, the Company assesses qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, financial performance, legal and other entity and asset specific events. If, after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the indefinite-lived intangible asset is impaired, then performing the quantitative test is necessary. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating a fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, impairment is recognized for the difference. To determine fair value of other indefinite-lived intangible assets, the Company uses an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Other indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

During Fiscal 2022, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangibles exceeded their respective carrying value.

As noted in the Goodwill section above, during the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred within its Gourmet Foods & Gift Baskets reporting unit and, as such, performed an impairment test of the indefinite lived intangibles, which resulted in a partial impairment of certain tradenames within the reporting unit.

During the fourth quarter of Fiscal 2023, the Company performed a Step 0 analysis and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.

During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in a partial impairment of this tradename.  

During the fourth quarter of fiscal year 2024, the Company performed a Step 0 analysis for its indefinite-lived intangible assets, excluding its PersonalizationMall tradename, and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.  For the Company's PersonalizationMall tradename, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangible asset exceeded its respective carrying amount.

See Note 6 – Goodwill and Intangible Assets for further information.

 

F- 8

 

Business Combinations

The Company accounts for business combinations in accordance with Accounting Standards Codification ("ASC") Topic 805, which requires, among other things, the acquiring entity in a business combination to recognize the fair value of all the assets acquired and liabilities assumed; the recognition of acquisition-related costs in the consolidated results of operations; the recognition of restructuring costs in the consolidated results of operations for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at their fair values on the acquisition date with subsequent adjustments recognized in the consolidated results of operations. The fair values assigned to identifiable intangible assets acquired are determined primarily by using an income approach, which is based on assumptions and estimates made by management. Significant assumptions utilized in the income approach are based on company specific information and projections that are not observable in the market and are therefore considered Level 3 measurements. The excess of the purchase price over the fair value of the identified assets and liabilities is recorded as goodwill. Operating results of the acquired entity are reflected in the Company’s consolidated financial statements from date of acquisition.

Deferred Catalog Costs

The Company capitalizes the costs of producing and distributing its catalogs and expenses them upon mailing. Included within prepaid and other current assets were $1.5 million and $2.4 million at June 30, 2024 and July 2, 2023, respectively, relating to prepaid catalog expenses.

Investments

Equity investments without a readily determinable fair value

Investments in non-marketable equity instruments of private companies, where the Company does not possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method investments was $2.4 million as of June 30, 2024 and $2.6 million as of July 2, 2023. 

Equity investments with a readily determinable fair value

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 10 - Fair Value Measurements).

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions, although bank deposits, at times, may exceed federally insured limits. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States, and the fact that a substantial portion of receivables are related to balances owed by major credit card companies. Allowances relating to consumer, corporate and franchise accounts receivable ($2.8 million at June 30, 2024 and $5.8 million at July 2, 2023) have been recorded based upon previous experience and management’s evaluation.

Revenue Recognition

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

F- 9

 

A description of our principal revenue generating activities is as follows:

- E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

- Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer at the point of sale, at which time payment is received.

- Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

- BloomNet services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet services are typically month-to-month and as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

Deferred Revenues

Deferred revenues are recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

Our total deferred revenue, included in "Accrued expenses" on our consolidated balance sheets, as of July 3, 2022, was $33.7 million, of which $33.1 million was recognized during the year ended July 2, 2023.  Our total deferred revenue as of  July 2, 2023 was $30.8 million of which, $30.2 million was recognized as revenue during the year ended June 30, 2024. The deferred revenue balance as of June 30, 2024 was $25.0 million.

Cost of Revenues

Cost of revenues consists primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third parties, and associated costs, including inbound and outbound shipping charges. Additionally, cost of revenues includes labor and facility costs related to manufacturing and production operations.

Marketing and Sales

Marketing and sales expense consists primarily of advertising expenses, catalog costs, online portal and search expenses, retail store and fulfillment operations (other than costs included in cost of revenues), and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities.

The Company expenses all advertising costs, with the exception of catalog costs (see Deferred Catalog Costs above), at the time the advertisement is first shown. Advertising expense was $283.6 million, $291.9 million and $347.7 million for the years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively.

Technology and Development

Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with the acquisition or development of software for internal use are capitalized if the software is expected to have a useful life beyond one year and amortized over the software’s useful life, typically three to seven years. Costs associated with repair maintenance, or the development of website content are expensed as incurred, as the useful lives of such software modifications are less than one year.

Stock-Based Compensation

The Company records compensation expense associated with restricted stock awards and other forms of equity compensation based upon the fair value of stock-based awards as measured at the grant date. The cost associated with share-based awards that are subject solely to time-based vesting requirements is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved.

F- 10

 

Derivatives and Hedging

The Company does not enter into derivative transactions for trading purposes, but rather, on occasion, to manage its exposure to interest rate fluctuations. When entering into these transactions, the Company has periodically managed its floating rate debt using interest rate swaps in order to reduce its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. The Company did not have any open derivative positions at June 30, 2024 and July 2, 2023.

Income Taxes

The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company also has net operating loss carryforwards and credit carryforwards in multiple jurisdictions and has recognized deferred assets for those losses and credits.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements on a particular tax position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. Assumptions, judgment and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. 

Net Income (Loss) Per Share

Basic net income (loss) per common share is computed by dividing the net income during the period by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income during the period by the sum of the weighted-average number of common shares outstanding during the period and the potential dilutive common shares (consisting of employee stock options and unvested restricted stock awards). Diluted net loss per common share is computed using the weighted-average number of common shares outstanding during the period and excludes the dilutive potential common shares (consisting of unvested restricted stock awards), as their inclusion would be antidilutive. As a result of the net loss for the years ended June 30, 2024 and July 2, 2023, there is no dilutive impact to the net loss per share calculation.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.  ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.  ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.  ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes.  The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

F- 11

    

Note 3 – Net Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net income (loss):

	Years Ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(6,105	)	$	(44,702	)	$	29,610
Denominator:
Weighted average shares outstanding		64,586			64,688			64,977
Effect of dilutive securities:
Employee stock options		-			-			45
Employee restricted stock awards		-			-			595
Total effect of dilutive securities		-			-			640
Adjusted weighted-average shares and assumed conversions		64,586			64,688			65,617
Net income (loss) per common share:
Basic	$	(0.09	)	$	(0.69	)	$	0.46
Diluted	$	(0.09	)	$	(0.69	)	$	0.45

Due to our net loss for the years ended June 30, 2024, and July 2, 2023, all common stock equivalents including stock options and unvested restricted stock awards have been excluded from the computation of diluted net loss per share because the effect would have been anti-dilutive to the computation.

There were 212,178 and 7,762 restricted stock awards and stock options, respectively, excluded from the Company's calculation of diluted net income (loss) per common share for the year ended July 3, 2022, as such awards were anti-dilutive.

Note 4. Acquisitions

Acquisition of Card Isle

On April 3, 2024, the Company, within its BloomNet segment, completed its acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on hand to fund the purchase.

The total consideration of $3.6 million was primarily allocated to the identifiable assets acquired and liabilities assumed based on the preliminary estimates of their fair values on the acquisition date, including:  goodwill of $3.0 million (deductible for income tax purposes) and artist contracts of $0.6 million ( 5-year life).  The Company is in the process of finalizing its allocation and this may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain additional intangible assets, revisions of useful lives of intangible assets, and the determination of any residual amount that will be allocated to goodwill.

Card Isle annual revenue and profit, based on its most recently available financial information, is deemed immaterial to the Company's consolidated financial statements, and as such pro forma results of operations have not been presented.

F- 12

 

Acquisition of Things Remembered

On  January 10, 2023, the Company completed its acquisition of certain assets of the Things Remembered brand, a provider of personalized gifts, whose operations have been integrated within the PersonalizationMall.com brand, in the Consumer Floral & Gifts segment. The Company used cash on hand to fund the $5.0 million purchase, which included the intellectual property, customer list, certain inventory, and equipment. The acquisition did not include Things Remembered retail stores. Things Remembered’s annual revenues from its e-commerce operations, based on its most recently available unaudited financial information was $30.4 million for the twelve months ended  November 30, 2022.

The total consideration of $5.0 million was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition.  During the quarter ended December 31, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill.  The consideration transferred was allocated to goodwill of $1.9 million (deductible for income tax purposes), trademarks of $0.8 million (indefinite life), customer lists of $0.8 million (3-year life), inventory of $1.1 million, and equipment of $0.4 million. 

Operating results of the Things Remembered business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Consumer Floral & Gifts segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Acquisition of Alice’s Table

On  December 31, 2021, the Company completed its acquisition of Alice’s Table, Inc. (“Alice’s Table”), a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country. The Company utilized existing cash of $0.8 million, contributed accounts receivable due from Alice’s Table of $0.3 million, and converted its cost method investment in Alice’s Table of $0.3 million, in order to acquire 100% ownership in Alice’s Table, which included tradenames, customer lists, websites and operations. Immediately prior to completing the acquisition, the Company wrote down its previous cost method investment in Alice’s Table to its $0.3 million fair value, on the date of the acquisition, resulting in an impairment of $0.7 million, which is recorded in the “Other expense (income), net” line item on the Statement of Operations for the fiscal year ended July 3, 2022. Alice’s Table revenues were approximately $3.8 million during its most recent fiscal year ended  September 30, 2021.

The resulting total consideration of $1.3 million was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition. During the quarter ended January 1, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill. The consideration transferred was allocated to: goodwill of $0.8 million, trademarks of $0.5 million (indefinite life), customer lists of $0.2 million (4-year life), and liabilities of $0.2 million.

Operating results of the Alice’s Table business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Consumer Floral & Gifts segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Acquisition of Vital Choice

On  October 27, 2021, the Company completed its acquisition of all of the membership interests in Vital Choice Seafood LLC (“Vital Choice”), a provider of wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods, and marine-sourced nutritional supplements. The Company utilized its existing credit facility to fund the $20.0 million purchase (subject to certain working capital and other adjustments), which included tradenames, customer lists, websites and operations. Vital Choice revenues were approximately $27.8 million during its most recent year ended  December 31, 2020.

After working capital and related adjustments, total consideration was approximately $20.0 million and was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition. During the quarter ended January 1, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill.

F- 13

 

The following table summarizes the allocation of the purchase price to the fair values of assets acquired and liabilities assumed:

	Vital Choice
	Preliminary					Vital Choice
	Purchase Price					Purchase Price
	Allocation		Measurement Period			Allocation
	October 27, 2021		Interim Adjustments			January 1, 2023
			(in thousands)
Inventory	$	8,653	$	-		$	8,653
Other current assets		929		(474	)		455
Property, plant and equipment		205		(205	)		-
Intangible assets		9,800		(600	)		9,200
Goodwill		4,383		634			5,017
Total assets acquired		23,970		(645	)		23,325
Current liabilities		3,621		(256	)		3,365
Net assets acquired	$	20,349	$	(389	)	$	19,960

The estimated fair value of the acquired work in process and finished goods inventory was determined utilizing the income approach. The income approach estimates the fair value of the inventory based on the net retail value of the inventory, less operating expenses and a reasonable profit allowance. Raw materials inventory was valued at book value, as there have not been any significant price fluctuations or other events that would materially change the cost to replace the raw materials.

Of the acquired intangible assets, $4.3 million was assigned to customer lists, which is being amortized over the estimated remaining life of 5 years, $4.9 million was assigned to tradenames (indefinite life), and $5.0 million was assigned to goodwill (indefinite life), which is expected to be deductible for tax purposes. The goodwill recognized is primarily related to synergistic value created in terms of both operating costs and revenue growth opportunities, enhanced financial and operational scale, and other strategic benefits.

The estimated fair value of the acquired tradenames was determined using the relief from royalty method, which is a risk-adjusted discounted cash flow approach. The relief from royalty method values an intangible asset by estimating the royalties saved through ownership of the asset. The relief from royalty method requires identifying the future revenue that would be generated by the trademark, multiplying it by a royalty rate deemed to be avoided through ownership of the asset and discounting the projected royalty savings amounts back to the acquisition date. The royalty rate used in the valuation was based on a consideration of market rates for similar categories of assets. The discount rate used in the valuation was based on the Company’s weighted average cost of capital, the riskiness of the earnings stream associated with the trademarks and the overall composition of the acquired assets.

The estimated fair value of the acquired customer lists was determined using the excess earnings method under the income approach. This method requires identifying the future revenue that would be generated by existing customers at the time of the acquisition, considering an appropriate attrition rate based on the historical experience of the Company. Appropriate expenses are then deducted from the revenues and economic rents are charged for the return on contributory assets. The after-tax cash flows attributable to the asset are discounted back to their net present value at an appropriate intangible asset rate of return and summed to calculate the value of the customer lists.

Operating results of the Vital Choice business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Gourmet Foods & Gift Baskets segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.  

Note 5. Inventory

The Company’s inventory, valued at the lower of cost or net realizable value, includes purchased and manufactured finished goods for sale, packaging supplies, crops, raw material ingredients for manufactured products and associated manufacturing labor and is classified as follows:

	June 30, 2024		July 2, 2023
	(in thousands)
Finished goods	$	94,590	$	92,582
Work-in-process		25,849		33,818
Raw materials		56,152		64,934
Total inventory	$	176,591	$	191,334

F- 14

     

Note 6. Goodwill and Intangible Assets

The following table presents goodwill by segment and the related change in the net carrying amount:

					Gourmet
	Consumer				Foods &
	Floral &				Gift
	Gifts		BloomNet		Baskets			Total
	(in thousands)
Balance at July 3, 2022	$	151,600	$	-	$	61,687		$	213,287
Measurement period adjustment for Vital Choice Acquisition		-		-		600			600
Measurement period adjustment for Alice's Table Acquisition		112		-		-			112
Acquisition of Things Remembered		1,664		-		-			1,664
Goodwill impairment		-		-		(62,287	)		(62,287	)
Balance at July 2, 2023	$	153,376	$	-	$	-		$	153,376
Measurement period adjustment for Things Remembered		201		-		-			201
Acquisition of Card Isle		-		2,960		-			2,960
Balance at June 30, 2024	$	153,577	$	2,960	$	-		$	156,537

The Company’s other intangible assets consist of the following:

		June 30, 2024						July 2, 2023
		Gross						Gross
	Amortization	Carrying		Accumulated				Carrying		Accumulated
	Period (1)	Amount		Amortization		Net		Amount		Amortization		Net
	(in years)	(in thousands)
Intangible assets with determinable lives
Investment in licenses	14 - 16	$	7,420	$	6,674	$	746	$	7,420	$	6,569	$	851
Customer lists	3 - 10		29,647		25,932		3,715		29,071		21,611		7,460
Other	5 - 14		2,946		2,664		282		2,946		2,604		342
Total intangible assets with determinable lives			40,013		35,270		4,743		39,437		30,784		8,653
Trademarks with indefinite lives			111,473		-		111,473		131,235		-		131,235
Total identifiable intangible assets		$	151,486	$	35,270	$	116,216	$	170,672	$	30,784	$	139,888

(1) The amortization of intangible assets for the years ended June 30, 2024, July 2, 2023 and July 3, 2022 was $4.4 million, $4.2 million and $3.9 million, respectively. Future estimated amortization expense is as follows: 2025 - $2.1 million, 2026 - $1.4 million, 2027 -$0.6 million, 2028 -$0.3 million, 2029 -$0.2 million, and thereafter -$0.1 million.

During the year ended July 3, 2022, the Company experienced a sustained decline in its share price and a resulting decrease in its market capitalization, primarily due to the overall macroeconomic environment. Inflationary cost increases, which began during the first half of the fiscal year, were exacerbated by geopolitical events, further pressuring the Company’s gross margin and operating expenses. Due to this overall market decline and the Company’s operating performance, the Company completed impairment assessments of the goodwill and intangible assets of its three reporting units. The quantitative impairment tests as of July 3, 2022, did not indicate an impairment.

F- 15

 

Although originally projected to be transitory, through the nine months ended April 2, 2023, the trend of adverse macroeconomic conditions and geopolitical pressures continued, and there was a sustained decline in the Company’s market capitalization. As the expected duration of these factors changed during the three months ended April 2, 2023, the Company made downward projections to its business forecasts, and therefore determined a triggering event had occurred that required an interim impairment assessment of the goodwill, intangibles and other long-lived assets of the Gourmet Foods & Gift Baskets reporting unit as of April 2, 2023.

The Company performed its goodwill impairment test by comparing the fair value of its Gourmet Foods & Gift Baskets reporting unit to its respective carrying value. The Company estimated the fair value of the Gourmet Foods & Gift Baskets reporting unit using an equal weighting of the income and market approaches, and a discount rate of 13%. The Company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management. Under the income approach, the Company used a discounted cash flow methodology which required management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company used the guideline public company method. Under this method, the Company utilized information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that were applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciled the aggregate fair values of its reporting units to its current market capitalization.

The Company’s impairment test for indefinite-lived intangible assets encompassed calculating a fair value of the indefinite-lived intangible asset and comparing that result to its carrying value. To determine fair value of indefinite-lived intangible assets, the Company used an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

The Company’s impairment test for definite-lived intangibles was performed through a recoverability test, comparing projected undiscounted cash flows from the use and eventual disposition of the asset or asset group to its carrying value.

Based on the impairment assessment performed during the quarter ended April 2, 2023, the Company recorded a non-cash goodwill and intangible impairment charge against its Gourmet Foods & Gift Baskets reporting unit of $64.6 million, comprised of $62.3 million, which was attributable to goodwill, and $2.3 million, which was attributable to certain tradenames within the same reporting unit. The Company concluded that the definite-lived and other long-lived assets of the reporting unit were not impaired.

As of its annual impairment testing date during the fourth quarter of Fiscal 2023, the Company completed a step 0 analysis of its Consumer Floral & Gift reporting unit, the only reporting unit with goodwill at that time, and its indefinite-lived intangibles and concluded that it was not “more likely than not” that the fair values were less than their carrying values. 

During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. The Company’s impairment test for its PersonalizationMall tradename encompassed calculating the fair value of the asset and comparing that result to its carrying value. To determine fair value the Company used an income approach, the relief-from-royalty method. As discussed above, this method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

During the fourth quarter of fiscal year 2024, the Company performed a Step 0 analysis for its Consumer Floral & Gift and BloomNet reporting units, the only reporting units with goodwill, and its indefinite-lived intangible assets, excluding its PersonalizationMall tradename, and determined that it was not “more likely than not” that the fair values were less than their carrying amounts.  For the Company’s PersonalizationMall tradename, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangible asset exceeded its respective carrying value.    

Note 7. Property, Plant and Equipment 

	June 30, 2024			July 2, 2023
	(in thousands)
Land	$	33,827		$	33,866
Orchards in production and land improvements		20,604			20,401
Building and building improvements		69,089			67,647
Leasehold improvements		31,289			29,524
Production equipment		131,664			125,297
Furniture and fixtures		9,325			9,102
Computer and telecommunication equipment		42,159			41,859
Software		176,160			181,085
Capital projects in progress		23,172			18,205
Property, plant and equipment, gross		537,289			526,986
Accumulated depreciation and amortization		(313,500	)		(292,417	)
Property, plant and equipment, net	$	223,789		$	234,569

Depreciation expense for the years ended June 30, 2024, July 2, 2023, and July 3, 2022 was $49.3 million, $49.5 million, and $45.2 million, respectively.

F- 16

     

Note 8. Accrued Expenses

Accrued expenses consisted of the following:

	June 30, 2024		July 2, 2023
	(in thousands)
Payroll and employee benefits	$	29,954	$	33,927
Deferred revenue		25,009		30,811
Accrued marketing expenses		10,709		13,679
Accrued florist payout		9,526		13,437
Accrued purchases		15,338		18,351
Other		30,767		31,709
Accrued expenses	$	121,303	$	141,914

Note 9. Long-Term Debt

The Company’s current and long-term debt consists of the following:

	June 30, 2024			July 2, 2023
	(in thousands)
Revolver (1)	$	-		$	-
Term Loan (1)		190,000			200,000
Deferred financing costs		(2,887	)		(3,609	)
Total debt		187,113			196,391
Less: current maturities of long-term debt		10,000			10,000
Long-term debt, net	$	177,113		$	186,391

(1) On  May 31, 2019, the Company and certain of its U.S. subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2019 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company’s existing amended and restated credit agreement dated as of  December 23, 2016 to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately 29 months to  May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan was payable in 19 quarterly installments of principal and interest beginning on  September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from  January 1 through  August 1, was able to be used for working capital and general corporate purposes, subject to certain restrictions. For each borrowing under the Existing Credit Agreement (as defined below), the Company was able to elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) a LIBOR rate plus 1%, or (2) an adjusted LIBOR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio.   On  August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amended the 2019 Credit Agreement to, among other modifications: (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from  January 1 through  August 1 for each fiscal year of the Company.    The 2020 Term Loan was payable in 15 quarterly installments of principal and interest beginning on  September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity on  May 31, 2024.   On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan.

F- 17

 

On August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amended the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to modify certain financial covenants.

On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”) to, among other modifications: (i) increase the amount of the outstanding term loan from approximately $150 million to $200 million, (ii) decrease the amount of the commitments in respect of the revolving credit facility from $250 million to $225 million, (iii) extend the maturity date of the outstanding term loan and the revolving credit facilities by approximately 48 months to June 27, 2028, and (iv) increase the applicable interest rate margins for SOFR and base rate loans by 25 basis points.

For each borrowing under the Third Amended Credit Agreement, the Company may elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.10% for all interest periods.

The Third Amended Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of June 30, 2024. The Third Amended Credit Agreement is secured by substantially all of the assets of the Company.

Future principal term loan payments under the Third Amended Credit Agreement are as follows: $10.0 million – Fiscal 2025, $20.0 million – Fiscal 2026, $20.0 million – Fiscal 2027, and $140.0 million – Fiscal 2028.

Note 10. Fair Value Measurements

Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no trading market exists, the Company believes that the carrying amount of its debt approximates fair value due to its variable nature (these are level 2 investments). The Company’s investments in non-marketable equity instruments of private companies are carried at cost and are periodically assessed for other-than-temporary impairment, when an event or circumstances indicate that an other-than-temporary decline in value may have occurred. The Company’s remaining financial assets and liabilities are measured and recorded at fair value (see table below). The Company’s non-financial assets, such as definite lived intangible assets and property, plant and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Goodwill and indefinite lived intangibles are tested for impairment annually, or more frequently, if events occur or circumstances change such that it is more likely than not that an impairment may exist, as required under the accounting standards.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the guidance are described below:

Level 1	Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2	Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3	Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

F- 18

 

The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis:

	Carrying		Fair Value Measurements
	Value		Assets (Liabilities)
			Level 1		Level 2		Level 3
	(in thousands)
Assets (liabilities) as of June 30, 2024:
Trading securities held in a “rabbi trust” (1)	$	32,805	$	32,805	$	-	$	-
	$	32,805	$	32,805	$	-	$	-
Assets (liabilities) as of July 2, 2023:
Trading securities held in a “rabbi trust” (1)	$	22,617	$	22,617	$	-	$	-
	$	22,617	$	22,617	$	-	$	-

(1) The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in the “rabbi trust” are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets.

Note 11. Income Taxes

Significant components of the income tax provision are as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Current provision (benefit):
Federal	$	11,774		$	976		$	(1,676	)
State		161			1,572			1,589
Current income tax expense (benefit)		11,935			2,548			(87	)
Deferred provision (benefit):
Federal		(14,246	)		(3,145	)		2,679
State		2,514			(1,463	)		(1,100	)
Deferred income tax expense (benefit)		(11,732	)		(4,608	)		1,579
Income tax expense (benefit)	$	203		$	(2,060	)	$	1,492

F- 19

 

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
Tax at U.S. statutory rates		21.0	%		21.0	%		21.0	%
State income taxes, net of federal tax benefit		(8.1	)		(0.2	)		4.2
Capital loss expiration		-			-			15.5
Non-deductible impairment charge		-			(16.8	)		-
Valuation allowance change		(28.5	)		(0.2	)		(19.8	)
Non-deductible compensation		(0.6	)		(2.1	)		5.3
Excess tax benefit/shortfalls from stock-based compensation		(11.9	)		(1.7	)		(16.1	)
Tax credits		16.9			2.7			(3.9	)
Enhanced deductions		11.8			2.6			(2.1	)
Other, net		(4.0	)		(0.9	)		0.7
Effective tax rate		(3.4	)%		4.4	%		4.8	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred income tax assets (liabilities) are as follows:

	June 30, 2024			July 2, 2023
	(in thousands)
Deferred income tax assets:
Loss and carryforwards	$	8,096		$	13,598
Accrued expenses and reserves		3,146			3,531
Inventory		5,417			4,422
Stock-based compensation		1,767			1,549
Deferred compensation		6,815			3,602
Operating lease liability		30,763			33,186
Gross deferred income tax assets		56,004			59,888
Less: Valuation allowance		(4,868	)		(3,182	)
Deferred tax assets, net		51,136			56,706
Deferred income tax liabilities:
Other intangibles		(10,693	)		(14,916	)
Tax in excess of book depreciation		(31,206	)		(41,826	)
Operating lease right-of-use asset		(28,639	)		(31,098	)
Deferred tax liabilities		(70,538	)		(87,840	)
Net deferred income tax liabilities	$	(19,402	)	$	(31,134	)

At June 30, 2024, the Company’s federal enhanced deduction and carryforwards were $3.6 million, tax effected, which if not utilized will begin to expire in 2027. At June 30, 2024, the Company’s state and foreign net operating loss carryforwards were $2.9 million and $1.3 million, tax effected, respectively, which if not utilized will begin to expire in Fiscal 2025 and Fiscal 2034, respectively.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.  During Fiscal 2024, the Company recorded valuation allowances of $1.7 million relating to certain state and foreign jurisdictions and concluded no further valuation allowances were necessary despite a three-year cumulative loss. This is based on a detailed analysis of future taxable income, with a particular focus on the scheduling of temporary differences that are expected to reverse in periods where the Company anticipates taxable income. Specifically, the timing and amount of future reversals of deferred tax liabilities are expected to fully offset the Company’s deferred tax assets, allowing it to realize their value without relying on additional sources of taxable income. At June 30, 2024 and July 2, 2023, the Company had valuation allowances of approximately $4.9 million and $3.2 million, respectively, primarily related to certain state and foreign net operating losses.

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company’s last completed U.S. federal examination was for Fiscal 2018.  Fiscal 2021, Fiscal 2022, and Fiscal 2023 remain subject to U.S. federal examination. Due to nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from Fiscal 2020. The Company's foreign income tax filings from Fiscal 2017 forward are open for examination by its respective foreign tax authorities, mainly Canada and Brazil.

F- 20

 

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At June 30, 2024, the Company has an unrecognized tax benefit, including accrued interest and penalties, of approximately $3.2 million all of which if fully recognized would impact our effective tax rate. The Company believes that $0.4 million of the unrecognized tax positions will be resolved over the next twelve months.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years ended
	June 30, 2024			July 2, 2023		July 3, 2022
	(in thousands)
Beginning balance	$	1,724		$	1,374	$	1,134
Increases on tax positions for prior years		1,100			30		21
Increases on tax positions for current year		387			320		267
Settlements		-			-		(19	)
Statute of limitation expirations		(431	)		-		(29	)
Ending balance	$	2,780		$	1,724	$	1,374

Note 12. Capital Stock

Holders of Class A common stock generally have the same rights as the holders of Class B common stock, except that holders of Class A common stock have one vote per share and holders of Class B common stock have 10 votes per share on all matters submitted to the vote of stockholders. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the stockholders for their vote or approval, except as may be required by Delaware law. Class B common stock may be converted into Class A common stock at any time on a one-for-one share basis. Each share of Class B common stock will automatically convert into one share of Class A common stock upon its transfer, with limited exceptions. During Fiscal 2023 and 2022,181,393 and 904,000 shares of Class B common stock, respectively, were converted into shares of Class A common stock.  During Fiscal 2024, no shares of Class B common stock were converted into shares of Class A common stock.

The Company has a stock repurchase plan through which purchases can be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The repurchase program is financed utilizing available cash. On April 22, 2021, the Company’s Board of Directors authorized an increase to its stock repurchase plan of up to $40.0 million. On February 3, 2022, the Company’s Board of Directors authorized an additional increase to its stock repurchase plan of up to $40.0 million. The Company repurchased a total of $10.4 million (1,079,415 shares), $1.2 million (147,479 shares), and $38.2 million (1,592,555 shares) during the fiscal years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively, under this program. Included in the repurchase is stock withheld to cover required employee withholdings, upon vesting of restricted stock awards.  As of June 30, 2024, $21.6 million remains authorized under the plan.

The Company has stock options and restricted stock awards outstanding to participants under the 1-800-FLOWERS.COM 2003 Long Term Incentive and Share Award Plan (as amended and restated as of October 22, 2009, October 28, 2011, September 14, 2016, October 15, 2020, and October 3, 2023, the “Plan”). The Plan is a broad-based, long-term incentive program that is intended to provide incentives to attract, retain and motivate employees, consultants and directors in order to achieve the Company’s long-term growth and profitability objectives. The Plan provides for the grant to eligible employees, consultants and directors of stock options, share appreciation rights (“SARs”), restricted shares, restricted share units, performance shares, performance units, dividend equivalents, and other share-based awards (collectively, “Awards”).  

Note 13. Stock Based Compensation

The Plan is administered by the Compensation Committee or such other Board committee (or the entire Board) as may be designated by the Board.

The amounts of stock-based compensation expense recognized within operating income (1) in the periods presented are as follows:

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Stock options	$	4,422	$	2,536	$	(41	)
Restricted stock awards		6,266		5,798		7,988
Total		10,688		8,334		7,947
Deferred income tax benefit		2,571		2,042		1,943
Stock-based compensation expense, net	$	8,117	$	6,292	$	6,004

(1) Stock-based compensation expense has not been allocated between business segments, but is reflected as part of Corporate overhead (See Note 15 - Business Segments for details).

F- 21

 

Stock-based compensation expense is recorded within the following line items of operating expenses:

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Marketing and sales	$	4,916	$	3,818	$	3,414
Technology and development		855		698		319
General and administrative		4,917		3,818		4,214
Total	$	10,688	$	8,334	$	7,947

Stock Options

The weighted average fair value of stock options on the date of grant, and the assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model, were as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022 (1)
Weighted average fair value of options granted	$	6.09		$	5.13			n/a
Expected volatility		56	%		52	%		n/a
Expected life (in years)		7.0			7.5			n/a
Risk-free interest rate	3.9		%		4.3	%		n/a
Expected dividend yield	0.0		%		0.0	%		n/a

(1) No options were granted during the fiscal year ended July 3, 2022.

The expected volatility of the option is determined using historical volatilities based on historical stock prices. The Company estimated the expected life of options granted based upon the historical weighted average. The risk-free interest rate is determined using the yield available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the option. The Company has never paid a dividend, and as such the dividend yield is 0.0%.

The following table summarizes stock option activity during the year ended June 30, 2024:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Options			Price		Term		Value
						(in years)		(in thousands)
Outstanding beginning of period		2,285,608		$	8.59
Granted		1,000,000		$	10.13
Exercised		(38,240	)	$	8.59
Forfeited/Expired		(61,831	)	$	8.59
Outstanding end of period		3,185,537		$	9.07		8.34	$	2,033
Exercisable at June 30, 2024		707,806		$	8.59		7.80	$	658

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of Fiscal 2024 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2024. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised during the years ended  June 30, 2024, July 2, 2023, July 3, 2022, were$0.1 million, $0.0 million, and $9.2 million, respectively.

F- 22

 

The following table summarizes information about stock options outstanding at June 30, 2024:

		Options Outstanding					Options Exercisable
				Weighted‑
				Average	Weighted‑				Weighted‑
				Remaining	Average				Average
		Options		Contractual Life	Exercise		Options		Exercise
Exercise Price		Outstanding		(years)	Price		Exercisable		Price
$	8.59		2,185,537	7.8	$	8.59		707,806	$	8.59
$	10.13		1,000,000	9.5	$	10.13		-	$	-
			3,185,537	8.3	$	9.07		707,806	$	8.59

As of June 30, 2024, the total future compensation cost related to non-vested options not yet recognized in the statement of operations was $10.6 million and the weighted average period over which these awards are expected to be recognized was 2.6 years.

Restricted Stock

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock).

The following table summarizes the activity of non-vested restricted stock during the year ended June 30, 2024:

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Non-vested – beginning of period		1,231,634		$	15.01
Granted		1,396,457		$	10.02
Vested		(480,708	)	$	15.22
Forfeited		(442,934	)	$	10.26
Non-vested - end of period		1,704,449		$	12.09

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of June 30, 2024, there was $13.9 million of total unrecognized compensation cost related to non-vested, restricted, stock-based compensation to be recognized over a weighted-average period of 2.3 years.

Note 14. Employee Retirement Plans

The Company has a 401(k) Profit Sharing Plan covering substantially all of its eligible employees. All employees who have attained the age of 21 are eligible to participate upon completion of one month of service. Participants may elect to make voluntary contributions to the 401(k) plan in amounts not exceeding federal guidelines. On an annual basis, the Company, as determined by its Board of Directors, may make certain discretionary contributions. Employees are vested in the Company's contributions based upon years of service. The Company contributed $1.7 million, $1.9 million, and $1.9 million during Fiscal 2024, 2023, and 2022, respectively.

The Company also has a nonqualified supplemental deferred compensation plan for certain executives pursuant to Section 409A of the Internal Revenue Code. Participants can defer from 1% up to a maximum of 100% of salary and performance and non-performance based bonus. There were no Company contributions to the plan during Fiscal 2024, 2023 and 2022. Distributions will be made to participants upon termination of employment or death in a lump sum, unless installments are selected by the participant. As of June 30, 2024 and July 2, 2023, these plan liabilities, which are included in “Other liabilities” within the Company’s consolidated balance sheets, totaled $32.8 million and $22.6 million, respectively. The associated plan assets, which are subject to the claims of the creditors, are primarily invested in mutual funds and are included in “Other assets” within the Company’s consolidated balance sheets. The gains (losses) on these investments, which were $6.9 million, ($0.8 million), and ($3.6 million), for the years ended  June 30, 2024,  July 2, 2023, and  July 3, 2022, respectively, are included in “Other expense (income), net", with a corresponding offset in "General and administrative" expenses, within the Company’s consolidated statements of operations.

F- 23

     

Note 15. Business Segments

The Company’s management reviews the results of the Company’s operations by the following three business segments:

• Consumer Floral & Gifts,

• BloomNet, and

• Gourmet Foods & Gift Baskets

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead (see (a) below), nor does it include depreciation and amortization, other expense (income), net and income taxes, or stock-based compensation, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Years ended
Net revenues	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Net revenues:
Consumer Floral & Gifts	$	849,791		$	920,510		$	1,059,570
BloomNet		107,802			133,183			145,702
Gourmet Foods & Gift Baskets		874,262			965,191			1,004,272
Corporate		796			375			201
Intercompany eliminations		(1,230	)		(1,406	)		(1,860	)
Total net revenues	$	1,831,421		$	2,017,853		$	2,207,885

	Years ended
Operating Income (Loss)	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Contribution Margin:
Consumer Floral & Gifts	$	67,278		$	95,535		$	104,319
BloomNet		33,766			37,197			42,515
Gourmet Foods & Gift Baskets		84,508			12,895			62,021
Segment Contribution Margin Subtotal		185,552			145,627			208,855
Corporate (a)		(133,872	)		(126,965	)		(117,676	)
Depreciation and amortization		(53,752	)		(53,673	)		(49,078	)
Operating income (loss)	$	(2,072	)	$	(35,011	)	$	42,101

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as stock-based compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. 

F- 24

 

The following tables represent a disaggregation of revenue from contracts with customers, by channel:

	Years Ended
	Consumer Floral & Gifts						BloomNet						Gourmet Foods & Gift Baskets						Corporate and Eliminations									Consolidated
	June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,			July 2,			July 3,			June 30,			July 2,			July 3,
	2024		2023		2022		2024		2023		2022		2024		2023		2022		2024			2023			2022			2024			2023			2022
	(in thousands)
Net revenues
E-commerce	$	840,569	$	911,302	$	1,049,821	$	-	$	-	$	-	$	773,630	$	833,320	$	884,827	$	-		$	-		$	-		$	1,614,199		$	1,744,622		$	1,934,648
Other		9,222		9,208		9,749		107,802		133,183		145,702		100,632		131,871		119,445		(434	)		(1,031	)		(1,659	)		217,222			273,231			273,237
Total net revenues	$	849,791	$	920,510	$	1,059,570	$	107,802	$	133,183	$	145,702	$	874,262	$	965,191	$	1,004,272	$	(434	)	$	(1,031	)	$	(1,659	)	$	1,831,421		$	2,017,853		$	2,207,885
Other revenues detail
Retail and other		9,222		9,208		9,749		-		-		-		9,534		9,751		10,134		-			-			-			18,756			18,959			19,883
Wholesale		-		-		-		42,362		50,075		53,957		91,098		122,120		109,311		-			-			-			133,460			172,195			163,268
BloomNet services		-		-		-		65,440		83,108		91,745		-		-		-		-			-			-			65,440			83,108			91,745
Corporate		-		-		-		-		-		-		-		-		-		796			375			201			796			375			201
Eliminations		-		-		-		-		-		-		-		-		-		(1,230	)		(1,406	)		(1,860	)		(1,230	)		(1,406	)		(1,860	)
Total other revenues	$	9,222	$	9,208	$	9,749	$	107,802	$	133,183	$	145,702	$	100,632	$	131,871	$	119,445	$	(434	)	$	(1,031	)	$	(1,659	)	$	217,222		$	273,231		$	273,237

F- 25

     

Note 16. Leases

The Company currently leases plants, warehouses, offices, store facilities, and equipment under various leases through Fiscal 2036. While most lease agreements are of a long-term nature (over a year), the Company also enters into short-term leases, primarily for seasonal needs. Lease agreements may contain renewal options and rent escalation clauses and require the Company to pay real estate taxes, insurance, common area maintenance and operating expenses applicable to the leased properties. The Company accounts for its leases in accordance with ASC 842.

At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time, by assessing whether the Company has the right to obtain substantially all of the economic benefits from the use of the identified asset, and the right to direct the use of the identified asset.

At the lease commencement date, the Company determines if a lease should be classified as an operating or a finance lease (the Company currently has no finance leases) and recognizes a corresponding lease liability and a right-of-use asset on its Consolidated Balance Sheet. The lease liability is initially and subsequently measured as the present value of the remaining fixed minimum rental payments (including base rent and fixed common area maintenance) using discount rates as of the commencement date. Variable payments (including most utilities, real estate taxes, insurance and variable common area maintenance) are expensed as incurred. Further, the Company elected a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The right-of-use asset is initially and subsequently measured at the carrying amount of the lease liability adjusted for any prepaid or accrued lease payments, remaining balance of lease incentives received, unamortized initial direct costs, or impairment charges relating to the right-of-use asset. Right-of-use assets are assessed for impairment using the long-lived assets impairment guidance. The discount rate used to determine the present value of lease payments is the Company’s estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the Company generally cannot determine the interest rate implicit in the lease.

The Company recognizes expense for its operating leases on a straight-line basis over the lease term. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Renewal option periods are included in the measurement of lease liability, where the exercise is reasonably certain to occur. Key estimates and judgments in accounting for leases include how the Company determines: (1) lease payments, (2) lease term, and (3) the discount rate used in calculating the lease liability.

Additional information related to our leases is as follows:

	Years Ended
	June 30, 2024			July 2, 2023
	(in thousands)
Lease costs:
Operating lease costs	$	22,775		$	22,208
Variable lease costs		26,326			24,582
Short-term lease cost		4,144			5,307
Sublease income		(999	)		(988	)
Total lease costs	$	52,246		$	51,109

	Years Ended
	June 30, 2024		July 2, 2023
	(in thousands)
Cash paid for amounts included in measurement of operating lease liabilities	$	22,699	$	21,020
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,799	$	12,040

	June 30, 2024			July 2, 2023
Weighted-average remaining lease term - operating leases (in years)		7.9			8.7
Weighted-discount rate - operating leases		4.3	%		4.0	%

F- 26

 

Maturities of lease liabilities in accordance with ASC 842 as of June 30, 2024 and reconciliation to balance sheet are as follows (in thousands):

2025	$	21,344
2026		20,487
2027		17,591
2028		16,596
2029		16,017
Thereafter		52,798
Total Future Minimum Lease Payments		144,833
Less: Imputed Remaining Interest		22,456
Total Operating Lease Liabilities		122,377
Less: Current portion of long-term operating lease liabilities		16,511
Long-term operating lease liabilities	$	105,866

Note 17. Commitments and Contingencies

Other Commitments

The Company’s purchase commitments consist primarily of inventory, equipment and technology (hardware and software) purchase orders made in the ordinary course of business, most of which have terms less than one year. As of June 30, 2024, the Company had fixed and determinable off-balance sheet purchase commitments with remaining terms in excess of one year of approximately $21.8 million, primarily related to the Company’s technology infrastructure and inventory commitments.

The Company had approximately $1.5 million and $2.7 million in unused stand-by letters of credit as of June 30, 2024 and July 2, 2023, respectively.

Litigation

Call Center Worker Claim:

In March of 2018, a putative class action lawsuit was filed against a subsidiary of the Company (the “Subsidiary”) in the U.S. District Court for the District of Oregon, Medford Division (the “Court”), alleging violations of the federal Fair Labor Standards Act (“FLSA”) and Oregon state law. The complaint was brought on behalf of a putative class of call center workers and alleged that certain Subsidiary policies and practices resulted in class members’ performance of unpaid work. The plaintiff sought class certification, compensation for alleged unpaid and underpaid wages, civil penalties, prejudgment interest, liquidated damages, litigation costs, and attorneys’ fees. Following mediation, the parties reached an agreement in April 2022 to resolve all claims. In September 2022, the Court granted final approval of the settlement agreement, and in November 2022, the Company remitted payment of approximately $2.9 million, which was previously accrued during the quarter ended March 27, 2022, and was included in "Accrued expenses" in the consolidated balance sheets at July 3, 2022. In entering into the settlement agreement, the Subsidiary made no admission of liability.

Subsequent to June 30, 2024, the Company settled a pre-existing litigation matter for $1.2 million, which was accrued as of June 30, 2024.

In addition, there are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the final resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.

Note 18. Subsequent Events

Acquisition of Scharffen Berger

On July 1, 2024, the Company completed its acquisition of Scharffen Berger, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment.

The Company used cash on its balance sheet to fund the approximately $3.3 million purchase. Scharffen Berger annual revenue, based on its most recent available financial information, is deemed immaterial to the Company's consolidated financial statements.

F- 27

     

1-800-FLOWERS.COM, Inc. and Subsidiaries

Schedule II - Valuation and Qualifying Accounts

			Additions
			Charged to			Charged to
	Balance at		Costs			Other					Balance at
	Beginning		and			Accounts-		Deductions-			End of
Description	of Period		Expenses			Describe		Describe (a)			Period
Reserves and allowances deducted from asset accounts:
Reserve for estimated credit losses-accounts/notes receivable
Year Ended June 30, 2024	$	5,836,000	$	251,000		$	-	$	(3,330,000	)	$	2,757,000
Year Ended July 2, 2023	$	2,396,000	$	3,991,000		$	-	$	(551,000	)	$	5,836,000
Year Ended July 3, 2022	$	4,032,000	$	(411,000	)	$	-	$	(1,225,000	)	$	2,396,000
Valuation allowance for deferred tax assets
Year Ended June 30, 2024	$	3,182,000	$	1,882,000		$	-	$	(196,000	)	$	4,868,000
Year Ended July 2, 2023	$	3,096,000	$	86,000		$	-	$	-		$	3,182,000
Year Ended July 3, 2022	$	9,258,000	$	58,000		$	-	$	(6,220,000	)	$	3,096,000
Valuation allowance for inventory
Year Ended June 30, 2024	$	9,910,000	$	8,980,000		$	-	$	(10,900,000	)	$	7,990,000
Year Ended July 2, 2023	$	11,370,000	$	3,010,000		$	-	$	(4,470,000	)	$	9,910,000
Year Ended July 3, 2022	$	8,680,000	$	4,670,000		$	-	$	(1,980,000	)	$	11,370,000

(a) Reduction in reserve due to amounts written off/recovered. 

F-28

EX-19.1

Exhibit 19.1

POLICY ON THE PREVENTION OF INSIDER TRADING

FOR

1-800-FLOWERS.COM, Inc.

In the normal course of business, officers, directors and employees of 1-800-FLOWERS.COM, Inc. and its subsidiaries (collectively, “1-800-FLOWERS.COM” or the “Company”) may come into possession of significant, sensitive information about 1-800-FLOWERS.COM. This information is considered the property of 1-800-FLOWERS.COM; you have been entrusted with it. In particular, you may not seek to profit from it by buying or selling securities yourself or passing on the information to others to enable them to profit. The purpose of this policy statement is both to inform you of your legal responsibilities and to make clear to you that the misuse of sensitive information is contrary to Company policy and will be dealt with severely. Persons violating 1-800-FLOWERS.COM policy on insider trading shall be subject to significant disciplinary action, including dismissal and possible criminal prosecution.

Illegal insider trading is a crime, penalized by fines of up to $5,000,000 and 20 years in jail for individuals. In addition, the SEC may seek the imposition of a civil penalty of up to three times the profits made or losses avoided from the trading. Insider traders must also disgorge any profits made and are often subjected to an injunction against future violations. Finally, insider traders may be subjected to civil liability in private lawsuits.

Employers and other controlling persons (including supervisory personnel) are also at risk under federal law. Controlling persons may, among other things, face penalties of the greater of $1,000,000 (adjusted upward for inflation) or three times the profits made or losses avoided by the trader if they recklessly fail to take preventive steps to control insider trading.

Thus, it is important both to you and 1-800-FLOWERS.COM that insider trading violations not occur. You should be aware that stock market surveillance techniques are becoming more and more sophisticated, and the chance that federal or other regulatory authorities will detect and prosecute even small-level trading is significant. The risk is simply not worth taking.

This memorandum describes 1-800-FLOWERS.COM’s Policy on the Prevention of Insider Trading (this “Policy”) to ensure that all 1-800-FLOWERS.COM directors (meaning a member of the Board of Directors), officers, employees and 1-800-FLOWERS.COM itself comply with laws prohibiting trading in 1-800-FLOWERS.COM stock by persons with material, non-public information. This memorandum supersedes all previous communications, if any, on the same subject.

If you have any questions about the scope or application of this Policy then please contact Michael R. Manley, General Counsel (phone: [***], e-mail: [***]@1800flowers.com).

SUMMARY OF POLICY

The following Policy applies to all 1-800-FLOWERS.COM directors, officers and employees worldwide:

If you are in possession of material, non-public information relating to 1-800-FLOWERS.COM, it is 1-800-FLOWERS.COM’s policy that neither you, nor your spouse or your dependents, nor any other person living in your household, may buy or sell securities of 1-800-FLOWERS.COM or engage in any other action to take advantage of, or pass on to others, that information. This Policy also applies to trading in the securities of any other company, including 1-800-FLOWERS.COM’s customers or suppliers, if you are in possession of material, non-public information about that company that you obtained in the course of your employment with 1-800-FLOWERS.COM. This Policy, however, does not apply to and does not prohibit trading pursuant to a plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, that has been approved by 1‑800‑FLOWERS.COM.

Transactions that may be necessary or justifiable for independent reasons, including emergency expenditures and transactions planned before you learned the material, non-public information, are not exceptions. Even the appearance of an improper transaction must be avoided to prevent any potential prosecution of 1-800-FLOWERS.COM or the individual trader.

In addition to your obligation to refrain from trading while in possession of material, non-public information, you are also prohibited from “tipping” others. The concept of unlawful tipping includes passing on information to friends or family members, whether or not under circumstances that suggests that you were trying to help them make a profit or avoid a loss. For the avoidance of doubt, the sharing of material information in the absence of a close relationship is also prohibited. In addition to being considered a form of insider trading, tipping is a serious breach of corporate confidentiality. For this reason, you should be careful to avoid discussing sensitive information in any place (for instance, at lunch, on public transportation, at social gatherings, on-line, in elevators) where others may hear such information. You should also be careful when disposing of any materials, including documents and files, which may contain sensitive information.

The rules regarding insider trading – particularly the prohibition against “tipping” others to information not available to the general public – cover all forms and channels of communication, including those conducted via the Internet’s World Wide Web. Information communicated via e-mail, internal and external, is sometimes confidential and “material” in nature and thus subject to insider trading rules. You are cautioned that the various Internet “chat rooms” and message boards dedicated to the stock market are largely unsecured and unregulated and should not be used to communicate any Company information whether confidential or not.

It is the policy of 1-800-FLOWERS.COM that no director, officer or employee shall initiate or respond to messages posted in such forums that pertain to 1-800-FLOWERS.COM or companies that 1-800-FLOWERS.COM does or may do business with about which you may learn something in the course of your employment. Such forums often contain rumors and misinformation that you may, as a loyal employee, feel compelled to correct. However, doing so, even with innocent and laudable intention, could be considered “tipping” and thereby in violation of insider trading rules. Should you come across information posted in an electronic forum that you believe to be false and potentially damaging to 1-800-FLOWERS.COM, please do not respond directly yourself. Instead, kindly contact Michael R. Manley or Andrew Milevoj, Senior Vice President of Investor Relations (phone: (516) 237-4617, e-mail: amilevoj@1800Flowers.com).

If material, non-public information is inadvertently disclosed, no matter what the circumstances, by any director, officer or employee of 1-800-FLOWERS.COM, the person making or discovering that disclosure should immediately report the disclosure to Michael R. Manley.

DEFINITIONS AND DETAILS

1.         “Material” information is information that a reasonable investor would consider important in a decision to buy, sell or hold 1-800-FLOWERS.COM securities. Chances are, if you learn something that leads you to want to buy or sell stock, that information will be considered material. It is important to keep in mind that material information can be any kind of information: information that something is likely to happen, or even just that it may happen, can be considered material. In short, any information that could reasonably affect the price of or influence a person’s decision to buy or sell 1-800-FLOWERS.COM’s stock is “material.” If you are in doubt as to the materiality of non-public information, you should presume that the information is material until you speak with Michael R. Manley.

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Examples of material information include, but are not limited to:

- quarterly or annual financial results

- knowledge of a cybersecurity breach or harm that resulted from a breach

- unanticipated changes in the level of sales, orders or expenses

- contract negotiations with a potentially significant new customer

- major new products

- serious product defects or recalls

- stock splits or dividend information

- major financings

- significant personnel changes

- significant operational changes

- significant acquisitions or dispositions of assets

- significant litigation

- merger negotiations

2.         “Non-public” information is any information that is not reasonably accessible to the investing public. Keep in mind that once 1-800-FLOWERS.COM releases information through public channels (for instance, a press release) it is deemed to take a few additional days for it to be broadly disseminated and for investors to be given the opportunity to absorb the information. For example, a speech to an audience, a TV or radio appearance or an article in a trade magazine does not qualify as full disclosure. Therefore, “non-public” information made available in any such manner will continue to be considered “non-public” until more broadly disseminated and is generally considered “non-public” for the first two business days after the day of release to the public.

3.         All 1-800-FLOWERS.COM directors, officers and other specifically identified employees are considered insiders (“Insiders”). Employees specifically notified by the Company are considered Insiders for purposes of this Policy. An Insider is permitted to trade stock only during certain specified periods (the “trading window”) and only if the Insider is not in possession of material, non-public information. The trading window opens (i.e., trading is permissible) on the third business day after the day on which 1-800-FLOWERS.COM releases information to the financial community about the prior quarter results. The trading window closes (i.e., trading is prohibited) fifteen days prior to the last day of the fiscal quarter in which the window had been opened. In addition, the Company may “shut the window” at any time.

4.         Other 1-800-FLOWERS.COM employees, regardless of title, who acquire material, non-public information are also insiders (“Temporary Insiders”). Temporary Insiders must abide by the “trading windows” applicable to Insiders (see paragraph 3 above). It is a Temporary Insiders’ responsibility to know when a trading window is in effect.

5.         (a) All trades (purchases or sales) of any Company security, including those made while the trading window is open, by any Insider or Temporary Insider, the spouse and dependants of an Insider or Temporary Insider, or any other person living in the household of an Insider or Temporary Insider must be cleared with Michael R. Manley Esq., or counsel designated by him for such purpose, before the trade is initiated. This will help ensure that you do not create the appearance of improperly trading in 1-800-FLOWERS.COM stock.

(b)  Insiders and Temporary Insiders, the spouse and dependents of any Insider or Temporary Insider, and any other person living in the household of an Insider or Temporary Insider (each, a “Restricted Group Member”) shall not (i) purchase or sell financial instruments or derivatives (including, but not limited to, puts and calls) that hedge or offset any change in the market value of Company common stock, or otherwise engage in transactions that are designed to, or have, the same effect or (ii) purchase on margin or pledge Company common stock.  

3

6.         Insiders and Temporary Insiders who wish to exercise their outstanding stock options under the Company’s stock option plan must abide by the following guidelines:

- If the option is being exercised with a cash payment or with shares of 1-800-FLOWERS.COM common stock, without the concurrent sale of the purchased shares, then the exercise may occur at any time.

- If the option is being exercised in connection with a same-day sale program, the exercise and sale must occur during the quarterly window period specified for open-market transactions and otherwise comply with this Policy.

7.         Even when the trading window is open, all directors, officers and employees must abstain from trading stock while in possession of material, non-public information. 1‑800‑FLOWERS.COM’s directors, officers and employees who acquire material, non-public information may not buy or sell 1-800-FLOWERS.COM stock, including stock obtained by option exercises, from the time they obtain such information until the third business day following a press release of the information by 1-800-FLOWERS.COM or upon approval of Michael R. Manley.

8.         All directors, officers and employees are prohibited from revealing material, non-public information to third parties who may engage in trading activities, and from making buy or sell recommendations to third parties based upon such information. If you are in possession of material, non-public information, your family members and close friends may also be deemed to be in possession of such information, regardless of whether they have actual knowledge of the information (that is, it would be difficult to prove they did not have actual knowledge). Consequently, they could also be liable for violations of the insider trading laws if they trade during a time in which you are prohibited from trading, regardless of whether they actually knew the material, non-public information at that time.

9.         In order to avoid placing employees in a position in which they are prevented from trading, and for other good business reasons, material non-public information should be limited to those who need to know such information in order to perform their jobs. If, however, 1-800-FLOWERS.COM management becomes aware that material non-public information may have been widely disseminated within 1-800-FLOWERS.COM, then management will impose a ban on trading for all employees.

10.         In order to avoid disclosure of material information to parties outside of 1-800-FLOWERS.COM, all inquiries regarding 1-800-FLOWERS.COM’s financial performance, operating results, projections or other requests for financial information should be referred to the Company’s Vice President of Investor Relations. This includes requests by analysts or others to corroborate or comment upon their financial projections for 1-800-FLOWERS.COM.

11.         Any director, officer or employee who knowingly trades 1-800-FLOWERS.COM stock while in the possession of material, non-public information or who provides such information to others will be subject to significant disciplinary action, including dismissal. No exceptions will be made to this Policy, even where the transaction is very small or where the individual planned to make the transaction before learning the information. If you know or suspect that a 1-800-FLOWERS.COM employee has violated this Policy, we encourage you to call Michael R. Manley. You are free to do so on an anonymous basis.

4

ADDITIONAL PROHIBITED TRANSACTIONS

1.         1-800-FLOWERS.COM believes it is improper and inappropriate for 1‑800‑FLOWERS.COM personnel to engage in short sales of 1-800-FLOWERS.COM’s stock. Therefore, it is 1-800-FLOWERS.COM’s policy that directors, officers and employees of 1-800-FLOWERS.COM (including the spouse and dependents of any such person, any other person living in such person’s household and entities over which such person exercises such control) may not engage in short sales of 1-800-FLOWERS.COM stock under any circumstances. For purposes of this Policy, “short sale” means any transaction in which you may benefit from a decline in 1-800-FLOWERS.COM’s stock price. Similarly, it is 1-800-FLOWERS.COM’s policy that directors, officers and employees of 1‑800‑FLOWERS.COM may not trade in options of 1-800-FLOWERS.COM stock, irrespective of the nature of the options, e.g., puts or calls.

2.         If you are a Board of Directors member or an executive officer, as determined by the Board of Directors, you are bound by Rule 16(b), which prohibits profiting from the purchase and sale of stock during the same six-month period. Finally, you must report any changes in your stock ownership position, including stock granted under an option plan, by filing a Form 4 with the SEC, in most cases, not later than the second business day after the transaction giving rise to the change in your ownership position is executed.

If you have any questions about the scope or application of this Policy, please contact Michael R. Manley.

5

EX-21.1

Exhibit 21.1

Subsidiaries of the Registrant

(as of June 30, 2024)

1-800-FLOWERS Retail Inc. (Delaware)

1-800-FLOWERS Service Support Center, Inc. (New York)

1-800-FLOWERS Team Services, Inc. (Delaware)

1-800-FLOWERS.COM Franchise Co., Inc. (Delaware)

1-800-Flowers.com DO Brasil Participacoes LTDA (Brazil)

1800Flowers.com Australia Pty LTD (Australia)

1873349 Ontario Inc. (Canada)

18F UK Holding Company Limited (United Kingdom)

18F Virginia, Inc. (Virginia)

800-Flowers, Inc. (New York)

Alice’s Table LLC (Delaware)

Bear Creek Orchards, Inc. (Delaware)

BloomNet, Inc. (Delaware)

Celebrations.com, LLC (Delaware)

Cheryl & Co. (Ohio)

CI Acquisition, LLC. (Delaware)

Conroy’s Inc. (California)

DesignPac Co., Inc. (Delaware)

DesignPac Gifts LLC (Illinois)

Floranet Iberia S.L. (Spain)

Flowerama of America, Inc. (Iowa)

FOL UK Holding Company Limited (United Kingdom)

Fresh Gift Cards, Inc. (Florida)

Goodsey.com, LLC (Delaware)

Great Foods, LLC (Delaware)

Guarded Realty Holdings, LLC (Delaware)

Harry & David Holdings, Inc. (Delaware)

Harry and David, LLC (Oregon)

Harry & David Operations, Inc. (Delaware)

MyFlorist.net, LLC (Delaware)

Napco Marketing Corp. (Delaware)

Plants.com, LLC (Delaware)

PersonalizationMall.com, LLC (Delaware)

Personalization Universe, LLC (Delaware)

Shari's Berries.com, LLC (Delaware)

The Popcorn Factory, Inc. (Delaware)

TR Acquisition, LLC (Delaware)

Vital Choice Seafood LLC (Delaware)

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

1-800-FLOWERS.COM, Inc.

Jericho, New York

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-276042, 333-259759, 333-192304, 333-164727, and 333-119999) of 1-800-FLOWERS.COM, Inc. and Subsidiaries (the "Company") of our reports dated September 6, 2024, relating to the consolidated financial statements and schedule, and the effectiveness of the Company's internal control over financial reporting, which appear in this Annual Report on Form 10-K.

/s/ BDO USA, P.C.

Melville, New York

September 6, 2024

EX-31.1

Exhibit 31.1

CERTIFICATIONS PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(RULE 13a-14 (a))

I, James F. McCann, certify that:

(1)	I have reviewed this annual report on Form 10-K of 1-800-FLOWERS.COM, Inc.;
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 6, 2024	/s/ James F. McCann
	James F. McCann
	Executive Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

(RULE 13a-14 (a))

I, William E. Shea, certify that:

(1) I have reviewed this annual report on Form 10-K of 1-800-FLOWERS.COM, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over the financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 6, 2024	/s/ William E. Shea
	William E. Shea
	Senior Vice President,
	Treasurer and
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of 1-800-FLOWERS.COM, Inc. (the “Company”) hereby certifies, to the best of such officer’s knowledge, that:

(1) the Annual Report on Form 10-K of the Company for the year ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: September 6, 2024	/s/ James F. McCann
	James F. McCann
	Executive Chairman and Chief Executive Officer
Dated: September 6, 2024	/s/ William E. Shea
	William E. Shea
	Senior Vice President,
	Treasurer and
	Chief Financial Officer

These certifications are furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates them by reference.

EX-97.1

Exhibit 97.1

1-800-FLOWERS.COM, INC.

Clawback Policy

The Board of Directors of 1-800-FLOWERS.COM, Inc. (the “Company”) has adopted this policy, which provides for the recoupment of certain executive compensation from Covered Executives (as defined below) in the event of a Restatement (the “Policy”). A “Restatement” includes any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period, as determined in accordance with Rule 10D-1 under the Securities Exchange Act of 1934, as amended, and The Nasdaq Stock Market LLC Listing Rule 5608, as such rules may be amended or interpreted from time to time (the “Clawback Rules”). This Policy shall be administered by the Board of Directors of the Company (the “Board”) or, if so designated by the Board, the Compensation Committee, in which case, references herein to the Board shall be deemed references to the Compensation Committee. Any determinations made by the Board shall be final and binding on all affected individuals.

This Policy applies to the Company’s current and former executive officers, as determined by the Board in accordance with the Clawback Rules (“Covered Executives”). In the event the Company is required to prepare a Restatement, the Company will recover reasonably promptly the amount of any excess Incentive Compensation received by the Covered Executive during the last three (3) completed fiscal years immediately preceding the date on which the Company is required to prepare the Restatement in accordance with the Clawback Rules.

For purposes of this Policy, “Incentive Compensation” means any compensation under the Company’s short-term and long-term incentive plans, including bonuses under the Sharing Success Program and grants under the 2003 Long Term Incentive and Share Award Plan (or any successor programs or plans) and any other contingent compensation that is granted, earned or vested from time to time; provided that such compensation is granted, earned, or vested based wholly or in part on the attainment of a financial reporting measure within the meaning of the Clawback Rules, and Incentive Compensation is deemed “received” in the Company’s fiscal period during which the financial reporting measure specified in the incentive-based compensation award is attained.

The amount to be recovered will be the excess of the Incentive Compensation received (or the number of shares granted or that became vested under an equity award grant) by the Covered Executive over the Incentive Compensation that would have been received (or the number of shares that would have been granted or become vested) by the Covered Executive had it been based on the restated financial results, computed without regard to any taxes paid, as determined by the Board in accordance with and subject to the Clawback Rules. For Incentive Compensation based on stock price or total shareholder return, where the amount of excess Incentive Compensation received by the Covered Executive is not subject to mathematical recalculation directly from the information in the Restatement, the amount must be based on a reasonable estimate of the effect of the Restatement.

The Company will recover any excess Incentive Compensation in accordance with this Policy unless the Compensation Committee has made a determination that recovery would be impracticable in accordance with and subject to the requirements of the Clawback Rules. The Board will determine, in its sole discretion, the method for recouping Incentive Compensation hereunder. The Company shall not indemnify any Covered Executives against the loss of any incorrectly awarded Incentive Compensation. This Policy shall be effective as of October 2, 2023 (the “Effective Date”) and shall apply to Incentive Compensation received by Covered Executives on or after that date.

This Policy is designed to ensure that the Company is in compliance with the Clawback Rules and shall be interpreted and construed consistent with the requirements of the Clawback Rules. The Board may at any time supplement or amend any provision of this Policy in any respect, repeal the Policy in whole or part or adopt a new policy relating to recoupment of certain executive compensation with such terms as the Board determines in its sole discretion to be appropriate and shall amend this Policy as it deems necessary from time to time to reflect any rules or standards adopted by the Securities and Exchange Commission or a national securities exchange on which the Company’s securities are listed. The Board will have the exclusive power and authority to administer this Policy, including, without limitation, the right and power to interpret the provisions of this Policy and to make all determinations deemed necessary or advisable for the administration of this Policy. All such actions, interpretations and determinations that are done or made by the Board in good faith will be final, conclusive and binding.

The Board intends that this Policy will be applied to the fullest extent of the law. Any employment agreement, equity award agreement, or similar agreement entered into on or after the Effective Date shall, as a condition to the grant of any Incentive Compensation thereunder, require a Covered Executive to agree to abide by the terms of this Policy, as it may be amended from time to time. Any right of recoupment under this Policy is in addition to, and not in lieu of, any other remedies or rights of recoupment that may be available to the Company pursuant to the terms of any similar policy or in any employment agreement, equity award agreement, or similar agreement and any other legal remedies available to the Company. This Policy shall be binding and enforceable against all Covered Executives and their beneficiaries, heirs, executors, administrators or other legal representatives.

XML

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2024	Aug. 30, 2024	Dec. 31, 2023
Document Information [Line Items]
Entity Central Index Key	0001084869
Entity Registrant Name	1 800 FLOWERS COM INC
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	0-26841
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3117311
Entity Address, Address Line One	Two Jericho Plaza, Suite 200
Entity Address, City or Town	Jericho
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11753
City Area Code	516
Local Phone Number	237-6000
Title of 12(b) Security	Class A common stock
Trading Symbol	FLWS
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 277,351,000
Auditor Name	BDO USA, P.C
Auditor Location	Melville, NY
Auditor Firm ID	243
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		27,068,221
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		37,152,140

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
Current assets:
Cash and cash equivalents	$ 159,437	$ 126,807
Trade receivables, net	18,024	20,419
Inventories	176,591	191,334
Prepaid and other	31,680	34,583
Total current assets	385,732	373,143
Property, plant and equipment, net	223,789	234,569
Operating lease right-of-use assets	113,926	124,715
Goodwill	156,537	153,376
Total identifiable intangible assets, net	116,216	139,888
Other assets	36,448	25,739
Total assets	1,032,648	1,051,430
Current liabilities:
Accounts payable	80,005	52,588
Accrued expenses	121,303	141,914
Current maturities of long-term debt	10,000	10,000
Current portion of long-term operating lease liabilities	16,511	15,759
Total current liabilities	227,819	220,261
Long-term debt, net	177,113	186,391
Long-term operating lease liabilities	105,866	117,330
Deferred tax liabilities, net	19,402	31,134
Other liabilities	36,106	24,471
Total liabilities	566,306	579,587
Commitments and contingencies (Note 17)
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued	0	0
Additional paid-in capital	399,165	388,215
Retained earnings	264,978	271,083
Accumulated other comprehensive loss	(127)	(170)
Treasury stock, at cost, 21,645,290 and 20,565,875 Class A shares in 2024 and 2023, respectively, and 5,280,000 Class B shares in 2024 and 2023	(198,585)	(188,191)
Total stockholders’ equity	466,342	471,843
Total liabilities and stockholders’ equity	1,032,648	1,051,430
Common Class A [Member]
Stockholders' equity:
Common stock	588	583
Common Class B [Member]
Stockholders' equity:
Common stock	$ 323	$ 323

XML

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2024	Jul. 02, 2023
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	58,792,695	58,273,747
Treasury stock, shares (in shares)	21,645,290	20,565,875
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	32,348,221	32,348,221
Treasury stock, shares (in shares)	5,280,000	5,280,000

XML

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Net revenues	$ 1,831,421	$ 2,017,853	$ 2,207,885
Cost of revenues (excludes depreciation and amortization)	1,096,668	1,260,327	1,386,147
Gross profit	734,753	757,526	821,738
Operating expenses:
Marketing and sales	485,016	500,840	571,661
Technology and development	60,235	60,691	56,561
General and administrative	118,060	112,747	102,337
Depreciation and amortization	53,752	53,673	49,078
Goodwill and intangible impairment	19,762	64,586	0
Total operating expenses	736,825	792,537	779,637
Operating income (loss)	(2,072)	(35,011)	42,101
Interest expense, net	10,623	10,946	5,667
Other expense (income), net	(6,793)	805	5,332
Income (loss) before income taxes	(5,902)	(46,762)	31,102
Income tax (benefit) expense	203	(2,060)	1,492
Net income (loss)	(6,105)	(44,702)	29,610
Other comprehensive income (currency translation)	43	41	107
Comprehensive income (loss)	$ (6,062)	$ (44,661)	$ 29,717
Basic net income (loss) per common share (in dollars per share)	$ (0.09)	$ (0.69)	$ 0.46
Diluted net income (loss) per common share (in dollars per share)	$ (0.09)	$ (0.69)	$ 0.45
Weighted average shares used in the calculation of net income (loss) per common share:
Basic (in shares)	64,586	64,688	64,977
Diluted (in shares)	64,586	64,688	65,617

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Total
Balance (in shares) at Jun. 27, 2021	55,675,661	33,433,614				24,105,841
Balance at Jun. 27, 2021	$ 557	$ 334	$ 371,103	$ 286,175	$ (318)	$ (148,781)	$ 509,070
Net income (loss)	0	0	0	29,610	0	0	29,610
Translation adjustment	$ 0	$ 0	0	0	107	$ 0	107
Stock-based compensation (in shares)	805,028	0				0
Stock-based compensation	$ 8	$ 0	7,939	0	0	$ 0	7,947
Exercise of stock options (in shares)	321,700	0				0
Exercise of stock options	$ 3	$ 0	843	0	0	$ 0	846
Conversion of Class B stock into Class A stock (in shares)	904,000
Conversion of Class B stock into Class A stock	$ 9
Conversion of Class B stock into Class A stock (in shares)		(904,000)
Conversion of Class B stock into Class A stock		$ (9)
Acquisition of Class A treasury stock (in shares)	0	0				1,592,555
Acquisition of Class A treasury stock	$ 0	$ 0	0	0	0	$ (38,171)	(38,171)
Balance (in shares) at Jul. 03, 2022	57,706,389	32,529,614				25,698,396
Balance at Jul. 03, 2022	$ 577	$ 325	379,885	315,785	(211)	$ (186,952)	509,409
Net income (loss)	0	0	0	(44,702)	0	0	(44,702)
Translation adjustment	$ 0	$ 0	0	0	41	$ 0	41
Stock-based compensation (in shares)	385,965	0				0
Stock-based compensation	$ 4	$ 0	8,330	0	0	$ 0	8,334
Conversion of Class B stock into Class A stock (in shares)	181,393
Conversion of Class B stock into Class A stock	$ 2
Conversion of Class B stock into Class A stock (in shares)		(181,393)
Conversion of Class B stock into Class A stock		$ (2)
Acquisition of Class A treasury stock (in shares)	0	0				147,479
Acquisition of Class A treasury stock	$ 0	$ 0	0	0	0	$ (1,239)	(1,239)
Balance (in shares) at Jul. 02, 2023	58,273,747	32,348,221				25,845,875
Balance at Jul. 02, 2023	$ 583	$ 323	388,215	271,083	(170)	$ (188,191)	471,843
Net income (loss)	0	0	0	(6,105)	0	0	(6,105)
Translation adjustment	$ 0	$ 0	0	0	43	$ 0	43
Stock-based compensation (in shares)	480,708	0				0
Stock-based compensation	$ 5	$ 0	10,683	0	0	$ 0	$ 10,688
Exercise of stock options (in shares)	38,240	0				0	38,240
Exercise of stock options	$ 0	$ 0	329	0	0	$ 0	$ 329
Acquisition of Class A treasury stock (in shares)	0	0				1,079,415
Acquisition of Class A treasury stock	$ 0	$ 0		0	0	$ (10,394)	(10,456)
Acquisition of Class A treasury stock			(62)
Balance (in shares) at Jun. 30, 2024	58,792,695	32,348,221				26,925,290
Balance at Jun. 30, 2024	$ 588	$ 323	$ 399,165	$ 264,978	$ (127)	$ (198,585)	$ 466,342

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Operating activities:
Net income (loss)	$ (6,105)	$ (44,702)	$ 29,610
Reconciliation of net income (loss) to net cash provided by operating activities net of acquisitions:
Goodwill and Intangible Asset Impairment	19,762	64,586	0
Depreciation and amortization	53,752	53,673	49,078
Amortization of deferred financing costs	724	1,834	1,269
Deferred income taxes	(11,732)	(4,608)	1,579
Bad debt expense (recoveries)	251	3,991	(411)
Stock-based compensation	10,688	8,334	7,947
Other non-cash items	310	95	3,194
Changes in operating items:
Trade receivables	2,143	(597)	(2,452)
Inventories	14,572	57,591	(85,047)
Prepaid and other	2,913	12,554	6,731
Accounts payable and accrued expenses	6,404	(38,623)	(6,595)
Other assets and other liabilities	1,317	1,223	286
Net cash provided by operating activities	94,999	115,351	5,189
Investing activities:
Acquisitions, net of cash acquired	(3,672)	(6,151)	(21,280)
Capital expenditures	(38,632)	(44,646)	(66,408)
Purchase of equity investments	0	(32)	(2,000)
Net cash used in investing activities	(42,304)	(50,829)	(89,688)
Financing activities:
Acquisition of treasury stock	(10,394)	(1,239)	(38,171)
Proceeds from exercise of employee stock options	329	0	846
Proceeds from bank borrowings	82,000	395,900	125,000
Repayment of bank borrowings	(92,000)	(360,900)	(145,000)
Debt issuance costs	0	(2,941)	(284)
Net cash (used in) provided by financing activities	(20,065)	30,820	(57,609)
Net change in cash and cash equivalents	32,630	95,342	(142,108)
Cash and cash equivalents:
Beginning of year	126,807	31,465	173,573
End of year	$ 159,437	$ 126,807	$ 31,465

XML

Insider Trading Arrangements

12 Months Ended

Jun. 30, 2024

Insider Trading Arr Line Items

Material Terms of Trading Arrangement [Text Block]

Item 9B. OTHER INFORMATION

Rule 10b5-1 Plans

During the three months ended June 30, 2024, none of the directors or executive officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-rule 10b5-1 trading arrangement", as defined in the item 408 of Regulation S-K.

Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

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Supplemental Cash Flow Information

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Cash Flow, Supplemental Disclosures [Text Block]

Supplemental Cash Flow Information:

- Interest paid amounted to $16.3 million, $12.8 million, and $4.6 million for the years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively.

- The Company paid income taxes of approximately $8.0 million, and $1.4 million, net of tax refunds, for the years ended June 30, 2024 and July 3, 2022, respectively and received refunds of approximately $8.8 million, net of tax payments, for the year ended July 2, 2023.

1-800-FLOWERS.COM, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

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Note 1 - Description of Business

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Nature of Operations [Text Block]

Note 1. Description of Business

1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help inspire customers to give more, connect more, and build more and better relationships. The Company’s e-commerce business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Things Remembered®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Scharffen Berger® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge on eligible products across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help its members grow their businesses profitably; Napco℠, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; Alice’s Table®, a lifestyle business offering fully digital on demand floral, culinary and other experiences to guests across the country and Card Isle®, an e-commerce greeting card service.

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Note 2 - Significant Accounting Policies

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

Note 2. Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of 1-800-FLOWERS.COM, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s net revenues from international sources were not material during fiscal years 2024, 2023 and 2022.

Fiscal Year

The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to June 30. Fiscal years 2024 and 2023, which ended on June 30, 2024 and July 2, 2023, respectively, each consisted of 52 weeks. Fiscal year 2022, which ended on July 3, 2022, consisted of 53 weeks.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements and commercial paper with maturities of three months or less when purchased.

Inventories

Inventories are valued at the lower of cost or net realizable value. Inventories are accounted for using a standard costing methodology, which approximates cost on a first-in, first-out basis.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method over the assets’ estimated useful lives. Amortization of leasehold improvements and capital leases is computed using the straight-line method over the shorter of the estimated useful lives or the initial lease terms. The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the software. Orchards in production, consisting of direct labor and materials, supervision and other items, are capitalized as part of capital projects in progress – orchards until the orchards produce fruit in commercial quantities, at which time they are reclassified to orchards in production. Estimated useful lives are periodically reviewed, and where appropriate, changes are made prospectively.

The Company’s property, plant and equipment are depreciated using the following estimated lives:

Building and building improvements (years)	10 - 40
Leasehold improvements (years)	3 - 10
Furniture, fixtures and production equipment (years)	3 - 20
Software (years)	3 - 7
Orchards in production and land improvements (years)	15 - 45

Property, plant and equipment are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not amortized, but it is subject to an annual assessment for impairment, which the Company performs during the fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist. The Company tests goodwill for impairment at the reporting unit level. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components.

In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test (“Step 1”). Under the Step 0 test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the Step 1 quantitative test is necessary.

Step 1 of the quantitative test requires comparison of the fair value of each of the reporting units to the respective carrying value. If the carrying value of the reporting unit is less than the fair value, no impairment exists. Otherwise, the Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method, the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciles the aggregate fair values of its reporting units determined in the first step (as described above) to its current market capitalization, allowing for a reasonable control premium.

During Fiscal 2022, as a result of changes within the macroeconomic environment, geopolitical pressures and the Company’s financial performance and market capitalization, the Company performed a Step 1 analysis, which indicated that the fair values of the Consumer Floral & Gifts and Gourmet Foods & Gift Baskets reporting units exceeded their respective carrying amounts.

During its quarterly assessment in the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred for its Gourmet Foods & Gift Baskets reporting unit. As such, the Company performed a Step 1 analysis of the reporting unit’s goodwill, intangibles and long-lived assets as of April 2, 2023, and fully impaired the related goodwill, and partially impaired certain tradenames within the reporting unit. The Company concluded that the definite-lived and other long-lived assets of the reporting unit were not impaired.

As of its annual impairment testing date during the fourth quarter of Fiscal 2023, the Company completed a step 0 analysis of its Consumer Floral & Gifts reporting unit, the only reporting unit with goodwill at the time, and concluded that it was not "more likely than not" that the fair value of its reporting unit was less than its carrying value.

As of its annual impairment testing date during the fourth quarter of Fiscal 2024, the Company completed a step 0 analysis of its Consumer Floral & Gifts and BloomNet reporting units, the only reporting units with goodwill, and concluded that it was not "more likely than not" that the fair values of its reporting units were less than their carrying values.  

See Note 6 – Goodwill and Intangible Assets for further information.

Other Intangibles, net

Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 to 16 years, while indefinite-lived intangible assets are not amortized.

Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting future cash flows.

The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth quarter, or whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. In applying the impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test. Under the Step 0 test, the Company assesses qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, financial performance, legal and other entity and asset specific events. If, after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the indefinite-lived intangible asset is impaired, then performing the quantitative test is necessary. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating a fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, impairment is recognized for the difference. To determine fair value of other indefinite-lived intangible assets, the Company uses an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Other indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

During Fiscal 2022, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangibles exceeded their respective carrying value.

As noted in the Goodwill section above, during the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred within its Gourmet Foods & Gift Baskets reporting unit and, as such, performed an impairment test of the indefinite lived intangibles, which resulted in a partial impairment of certain tradenames within the reporting unit.

During the fourth quarter of Fiscal 2023, the Company performed a Step 0 analysis and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.

During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in a partial impairment of this tradename.  

During the fourth quarter of fiscal year 2024, the Company performed a Step 0 analysis for its indefinite-lived intangible assets, excluding its PersonalizationMall tradename, and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.  For the Company's PersonalizationMall tradename, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangible asset exceeded its respective carrying amount.

See Note 6 – Goodwill and Intangible Assets for further information.

 

Business Combinations

The Company accounts for business combinations in accordance with Accounting Standards Codification ("ASC") Topic 805, which requires, among other things, the acquiring entity in a business combination to recognize the fair value of all the assets acquired and liabilities assumed; the recognition of acquisition-related costs in the consolidated results of operations; the recognition of restructuring costs in the consolidated results of operations for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at their fair values on the acquisition date with subsequent adjustments recognized in the consolidated results of operations. The fair values assigned to identifiable intangible assets acquired are determined primarily by using an income approach, which is based on assumptions and estimates made by management. Significant assumptions utilized in the income approach are based on company specific information and projections that are not observable in the market and are therefore considered Level 3 measurements. The excess of the purchase price over the fair value of the identified assets and liabilities is recorded as goodwill. Operating results of the acquired entity are reflected in the Company’s consolidated financial statements from date of acquisition.

Deferred Catalog Costs

The Company capitalizes the costs of producing and distributing its catalogs and expenses them upon mailing. Included within prepaid and other current assets were $1.5 million and $2.4 million at June 30, 2024 and July 2, 2023, respectively, relating to prepaid catalog expenses.

Investments

Equity investments without a readily determinable fair value

Investments in non-marketable equity instruments of private companies, where the Company does not possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method investments was $2.4 million as of June 30, 2024 and $2.6 million as of July 2, 2023. 

Equity investments with a readily determinable fair value

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 10 - Fair Value Measurements).

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions, although bank deposits, at times, may exceed federally insured limits. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States, and the fact that a substantial portion of receivables are related to balances owed by major credit card companies. Allowances relating to consumer, corporate and franchise accounts receivable ($2.8 million at June 30, 2024 and $5.8 million at July 2, 2023) have been recorded based upon previous experience and management’s evaluation.

Revenue Recognition

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

A description of our principal revenue generating activities is as follows:

- E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

- Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer at the point of sale, at which time payment is received.

- Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

- BloomNet services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet services are typically month-to-month and as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

Deferred Revenues

Deferred revenues are recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

Our total deferred revenue, included in "Accrued expenses" on our consolidated balance sheets, as of July 3, 2022, was $33.7 million, of which $33.1 million was recognized during the year ended July 2, 2023.  Our total deferred revenue as of  July 2, 2023 was $30.8 million of which, $30.2 million was recognized as revenue during the year ended June 30, 2024. The deferred revenue balance as of June 30, 2024 was $25.0 million.

Cost of Revenues

Cost of revenues consists primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third parties, and associated costs, including inbound and outbound shipping charges. Additionally, cost of revenues includes labor and facility costs related to manufacturing and production operations.

Marketing and Sales

Marketing and sales expense consists primarily of advertising expenses, catalog costs, online portal and search expenses, retail store and fulfillment operations (other than costs included in cost of revenues), and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities.

The Company expenses all advertising costs, with the exception of catalog costs (see Deferred Catalog Costs above), at the time the advertisement is first shown. Advertising expense was $283.6 million, $291.9 million and $347.7 million for the years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively.

Technology and Development

Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with the acquisition or development of software for internal use are capitalized if the software is expected to have a useful life beyond one year and amortized over the software’s useful life, typically three to seven years. Costs associated with repair maintenance, or the development of website content are expensed as incurred, as the useful lives of such software modifications are less than one year.

Stock-Based Compensation

The Company records compensation expense associated with restricted stock awards and other forms of equity compensation based upon the fair value of stock-based awards as measured at the grant date. The cost associated with share-based awards that are subject solely to time-based vesting requirements is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved.

Derivatives and Hedging

The Company does not enter into derivative transactions for trading purposes, but rather, on occasion, to manage its exposure to interest rate fluctuations. When entering into these transactions, the Company has periodically managed its floating rate debt using interest rate swaps in order to reduce its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. The Company did not have any open derivative positions at June 30, 2024 and July 2, 2023.

Income Taxes

The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company also has net operating loss carryforwards and credit carryforwards in multiple jurisdictions and has recognized deferred assets for those losses and credits.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements on a particular tax position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. Assumptions, judgment and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. 

Net Income (Loss) Per Share

Basic net income (loss) per common share is computed by dividing the net income during the period by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income during the period by the sum of the weighted-average number of common shares outstanding during the period and the potential dilutive common shares (consisting of employee stock options and unvested restricted stock awards). Diluted net loss per common share is computed using the weighted-average number of common shares outstanding during the period and excludes the dilutive potential common shares (consisting of unvested restricted stock awards), as their inclusion would be antidilutive. As a result of the net loss for the years ended June 30, 2024 and July 2, 2023, there is no dilutive impact to the net loss per share calculation.

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.  ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.  ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.  ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes.  The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

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Note 3 - Net Income (Loss) Per Common Share

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 3 – Net Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net income (loss):

	Years Ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(6,105	)	$	(44,702	)	$	29,610
Denominator:
Weighted average shares outstanding		64,586			64,688			64,977
Effect of dilutive securities:
Employee stock options		-			-			45
Employee restricted stock awards		-			-			595
Total effect of dilutive securities		-			-			640
Adjusted weighted-average shares and assumed conversions		64,586			64,688			65,617
Net income (loss) per common share:
Basic	$	(0.09	)	$	(0.69	)	$	0.46
Diluted	$	(0.09	)	$	(0.69	)	$	0.45

Due to our net loss for the years ended June 30, 2024, and July 2, 2023, all common stock equivalents including stock options and unvested restricted stock awards have been excluded from the computation of diluted net loss per share because the effect would have been anti-dilutive to the computation.

There were 212,178 and 7,762 restricted stock awards and stock options, respectively, excluded from the Company's calculation of diluted net income (loss) per common share for the year ended July 3, 2022, as such awards were anti-dilutive.

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Note 4 - Acquisitions

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Note 4. Acquisitions

Acquisition of Card Isle

On April 3, 2024, the Company, within its BloomNet segment, completed its acquisition of certain assets of Card Isle, an e-commerce greeting card company, expanding the Company’s presence in the greeting card category across all brands.  The Company used cash on hand to fund the purchase.

The total consideration of $3.6 million was primarily allocated to the identifiable assets acquired and liabilities assumed based on the preliminary estimates of their fair values on the acquisition date, including:  goodwill of $3.0 million (deductible for income tax purposes) and artist contracts of $0.6 million ( 5-year life).  The Company is in the process of finalizing its allocation and this may result in potential adjustments to the carrying value of the respective recorded assets and liabilities, establishment of certain additional intangible assets, revisions of useful lives of intangible assets, and the determination of any residual amount that will be allocated to goodwill.

Card Isle annual revenue and profit, based on its most recently available financial information, is deemed immaterial to the Company's consolidated financial statements, and as such pro forma results of operations have not been presented.

Acquisition of Things Remembered

On  January 10, 2023, the Company completed its acquisition of certain assets of the Things Remembered brand, a provider of personalized gifts, whose operations have been integrated within the PersonalizationMall.com brand, in the Consumer Floral & Gifts segment. The Company used cash on hand to fund the $5.0 million purchase, which included the intellectual property, customer list, certain inventory, and equipment. The acquisition did not include Things Remembered retail stores. Things Remembered’s annual revenues from its e-commerce operations, based on its most recently available unaudited financial information was $30.4 million for the twelve months ended  November 30, 2022.

The total consideration of $5.0 million was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition.  During the quarter ended December 31, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill.  The consideration transferred was allocated to goodwill of $1.9 million (deductible for income tax purposes), trademarks of $0.8 million (indefinite life), customer lists of $0.8 million (3-year life), inventory of $1.1 million, and equipment of $0.4 million. 

Operating results of the Things Remembered business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Consumer Floral & Gifts segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Acquisition of Alice’s Table

On  December 31, 2021, the Company completed its acquisition of Alice’s Table, Inc. (“Alice’s Table”), a lifestyle business offering fully digital livestreaming and on demand floral, culinary and other experiences to guests across the country. The Company utilized existing cash of $0.8 million, contributed accounts receivable due from Alice’s Table of $0.3 million, and converted its cost method investment in Alice’s Table of $0.3 million, in order to acquire 100% ownership in Alice’s Table, which included tradenames, customer lists, websites and operations. Immediately prior to completing the acquisition, the Company wrote down its previous cost method investment in Alice’s Table to its $0.3 million fair value, on the date of the acquisition, resulting in an impairment of $0.7 million, which is recorded in the “Other expense (income), net” line item on the Statement of Operations for the fiscal year ended July 3, 2022. Alice’s Table revenues were approximately $3.8 million during its most recent fiscal year ended  September 30, 2021.

The resulting total consideration of $1.3 million was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition. During the quarter ended January 1, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill. The consideration transferred was allocated to: goodwill of $0.8 million, trademarks of $0.5 million (indefinite life), customer lists of $0.2 million (4-year life), and liabilities of $0.2 million.

Operating results of the Alice’s Table business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Consumer Floral & Gifts segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.

Acquisition of Vital Choice

On  October 27, 2021, the Company completed its acquisition of all of the membership interests in Vital Choice Seafood LLC (“Vital Choice”), a provider of wild-caught seafood and sustainably farmed shellfish, pastured proteins, organic foods, and marine-sourced nutritional supplements. The Company utilized its existing credit facility to fund the $20.0 million purchase (subject to certain working capital and other adjustments), which included tradenames, customer lists, websites and operations. Vital Choice revenues were approximately $27.8 million during its most recent year ended  December 31, 2020.

After working capital and related adjustments, total consideration was approximately $20.0 million and was preliminarily allocated to the identifiable assets acquired and liabilities assumed based on our preliminary estimates of their fair values, as a result of information that was available as of the date of acquisition. During the quarter ended January 1, 2023, the Company finalized its purchase price allocation, resulting in immaterial adjustments to the preliminary carrying value of the respective recorded assets and the residual amount that was allocated to goodwill.

The following table summarizes the allocation of the purchase price to the fair values of assets acquired and liabilities assumed:

	Vital Choice
	Preliminary					Vital Choice
	Purchase Price					Purchase Price
	Allocation		Measurement Period			Allocation
	October 27, 2021		Interim Adjustments			January 1, 2023
			(in thousands)
Inventory	$	8,653	$	-		$	8,653
Other current assets		929		(474	)		455
Property, plant and equipment		205		(205	)		-
Intangible assets		9,800		(600	)		9,200
Goodwill		4,383		634			5,017
Total assets acquired		23,970		(645	)		23,325
Current liabilities		3,621		(256	)		3,365
Net assets acquired	$	20,349	$	(389	)	$	19,960

The estimated fair value of the acquired work in process and finished goods inventory was determined utilizing the income approach. The income approach estimates the fair value of the inventory based on the net retail value of the inventory, less operating expenses and a reasonable profit allowance. Raw materials inventory was valued at book value, as there have not been any significant price fluctuations or other events that would materially change the cost to replace the raw materials.

Of the acquired intangible assets, $4.3 million was assigned to customer lists, which is being amortized over the estimated remaining life of 5 years, $4.9 million was assigned to tradenames (indefinite life), and $5.0 million was assigned to goodwill (indefinite life), which is expected to be deductible for tax purposes. The goodwill recognized is primarily related to synergistic value created in terms of both operating costs and revenue growth opportunities, enhanced financial and operational scale, and other strategic benefits.

The estimated fair value of the acquired tradenames was determined using the relief from royalty method, which is a risk-adjusted discounted cash flow approach. The relief from royalty method values an intangible asset by estimating the royalties saved through ownership of the asset. The relief from royalty method requires identifying the future revenue that would be generated by the trademark, multiplying it by a royalty rate deemed to be avoided through ownership of the asset and discounting the projected royalty savings amounts back to the acquisition date. The royalty rate used in the valuation was based on a consideration of market rates for similar categories of assets. The discount rate used in the valuation was based on the Company’s weighted average cost of capital, the riskiness of the earnings stream associated with the trademarks and the overall composition of the acquired assets.

The estimated fair value of the acquired customer lists was determined using the excess earnings method under the income approach. This method requires identifying the future revenue that would be generated by existing customers at the time of the acquisition, considering an appropriate attrition rate based on the historical experience of the Company. Appropriate expenses are then deducted from the revenues and economic rents are charged for the return on contributory assets. The after-tax cash flows attributable to the asset are discounted back to their net present value at an appropriate intangible asset rate of return and summed to calculate the value of the customer lists.

Operating results of the Vital Choice business are reflected in the Company’s consolidated financial statements from the date of acquisition within the Gourmet Foods & Gift Baskets segment. Pro forma results of operations have not been presented, as the impact on the Company’s consolidated financial results was not material.  

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Note 5 - Inventory

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note 5. Inventory

The Company’s inventory, valued at the lower of cost or net realizable value, includes purchased and manufactured finished goods for sale, packaging supplies, crops, raw material ingredients for manufactured products and associated manufacturing labor and is classified as follows:

	June 30, 2024		July 2, 2023
	(in thousands)
Finished goods	$	94,590	$	92,582
Work-in-process		25,849		33,818
Raw materials		56,152		64,934
Total inventory	$	176,591	$	191,334

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Note 6 - Goodwill and Intangible Assets - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Apr. 02, 2023

Jun. 30, 2024

Jul. 02, 2023

Jul. 03, 2022

Income Statement [Abstract]

Goodwill and Intangible Asset Impairment

$ 19,762

$ 64,586

$ 0

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6. Goodwill and Intangible Assets

The following table presents goodwill by segment and the related change in the net carrying amount:

					Gourmet
	Consumer				Foods &
	Floral &				Gift
	Gifts		BloomNet		Baskets			Total
	(in thousands)
Balance at July 3, 2022	$	151,600	$	-	$	61,687		$	213,287
Measurement period adjustment for Vital Choice Acquisition		-		-		600			600
Measurement period adjustment for Alice's Table Acquisition		112		-		-			112
Acquisition of Things Remembered		1,664		-		-			1,664
Goodwill impairment		-		-		(62,287	)		(62,287	)
Balance at July 2, 2023	$	153,376	$	-	$	-		$	153,376
Measurement period adjustment for Things Remembered		201		-		-			201
Acquisition of Card Isle		-		2,960		-			2,960
Balance at June 30, 2024	$	153,577	$	2,960	$	-		$	156,537

The Company’s other intangible assets consist of the following:

		June 30, 2024						July 2, 2023
		Gross						Gross
	Amortization	Carrying		Accumulated				Carrying		Accumulated
	Period (1)	Amount		Amortization		Net		Amount		Amortization		Net
	(in years)	(in thousands)
Intangible assets with determinable lives
Investment in licenses	14 - 16	$	7,420	$	6,674	$	746	$	7,420	$	6,569	$	851
Customer lists	3 - 10		29,647		25,932		3,715		29,071		21,611		7,460
Other	5 - 14		2,946		2,664		282		2,946		2,604		342
Total intangible assets with determinable lives			40,013		35,270		4,743		39,437		30,784		8,653
Trademarks with indefinite lives			111,473		-		111,473		131,235		-		131,235
Total identifiable intangible assets		$	151,486	$	35,270	$	116,216	$	170,672	$	30,784	$	139,888

(1) The amortization of intangible assets for the years ended June 30, 2024, July 2, 2023 and July 3, 2022 was $4.4 million, $4.2 million and $3.9 million, respectively. Future estimated amortization expense is as follows: 2025 - $2.1 million, 2026 - $1.4 million, 2027 -$0.6 million, 2028 -$0.3 million, 2029 -$0.2 million, and thereafter -$0.1 million.

During the year ended July 3, 2022, the Company experienced a sustained decline in its share price and a resulting decrease in its market capitalization, primarily due to the overall macroeconomic environment. Inflationary cost increases, which began during the first half of the fiscal year, were exacerbated by geopolitical events, further pressuring the Company’s gross margin and operating expenses. Due to this overall market decline and the Company’s operating performance, the Company completed impairment assessments of the goodwill and intangible assets of its three reporting units. The quantitative impairment tests as of July 3, 2022, did not indicate an impairment.

Although originally projected to be transitory, through the nine months ended April 2, 2023, the trend of adverse macroeconomic conditions and geopolitical pressures continued, and there was a sustained decline in the Company’s market capitalization. As the expected duration of these factors changed during the three months ended April 2, 2023, the Company made downward projections to its business forecasts, and therefore determined a triggering event had occurred that required an interim impairment assessment of the goodwill, intangibles and other long-lived assets of the Gourmet Foods & Gift Baskets reporting unit as of April 2, 2023.

The Company performed its goodwill impairment test by comparing the fair value of its Gourmet Foods & Gift Baskets reporting unit to its respective carrying value. The Company estimated the fair value of the Gourmet Foods & Gift Baskets reporting unit using an equal weighting of the income and market approaches, and a discount rate of 13%. The Company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management. Under the income approach, the Company used a discounted cash flow methodology which required management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company used the guideline public company method. Under this method, the Company utilized information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that were applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciled the aggregate fair values of its reporting units to its current market capitalization.

The Company’s impairment test for indefinite-lived intangible assets encompassed calculating a fair value of the indefinite-lived intangible asset and comparing that result to its carrying value. To determine fair value of indefinite-lived intangible assets, the Company used an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

The Company’s impairment test for definite-lived intangibles was performed through a recoverability test, comparing projected undiscounted cash flows from the use and eventual disposition of the asset or asset group to its carrying value.

Based on the impairment assessment performed during the quarter ended April 2, 2023, the Company recorded a non-cash goodwill and intangible impairment charge against its Gourmet Foods & Gift Baskets reporting unit of $64.6 million, comprised of $62.3 million, which was attributable to goodwill, and $2.3 million, which was attributable to certain tradenames within the same reporting unit. The Company concluded that the definite-lived and other long-lived assets of the reporting unit were not impaired.

As of its annual impairment testing date during the fourth quarter of Fiscal 2023, the Company completed a step 0 analysis of its Consumer Floral & Gift reporting unit, the only reporting unit with goodwill at that time, and its indefinite-lived intangibles and concluded that it was not “more likely than not” that the fair values were less than their carrying values. 

During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. The Company’s impairment test for its PersonalizationMall tradename encompassed calculating the fair value of the asset and comparing that result to its carrying value. To determine fair value the Company used an income approach, the relief-from-royalty method. As discussed above, this method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. This assessment resulted in the Company recording a non-cash impairment charge of $19.8 million to reduce the recorded carrying value of the PersonalizationMall tradename.

During the fourth quarter of fiscal year 2024, the Company performed a Step 0 analysis for its Consumer Floral & Gift and BloomNet reporting units, the only reporting units with goodwill, and its indefinite-lived intangible assets, excluding its PersonalizationMall tradename, and determined that it was not “more likely than not” that the fair values were less than their carrying amounts.  For the Company’s PersonalizationMall tradename, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangible asset exceeded its respective carrying value.    

Gourmet Foods and Gift Baskets [Member]

Income Statement [Abstract]

Goodwill and Intangible Asset Impairment

$ 64,600

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Note 7 - Property, Plant and Equipment

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 7. Property, Plant and Equipment 

	June 30, 2024			July 2, 2023
	(in thousands)
Land	$	33,827		$	33,866
Orchards in production and land improvements		20,604			20,401
Building and building improvements		69,089			67,647
Leasehold improvements		31,289			29,524
Production equipment		131,664			125,297
Furniture and fixtures		9,325			9,102
Computer and telecommunication equipment		42,159			41,859
Software		176,160			181,085
Capital projects in progress		23,172			18,205
Property, plant and equipment, gross		537,289			526,986
Accumulated depreciation and amortization		(313,500	)		(292,417	)
Property, plant and equipment, net	$	223,789		$	234,569

Depreciation expense for the years ended June 30, 2024, July 2, 2023, and July 3, 2022 was $49.3 million, $49.5 million, and $45.2 million, respectively.

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Note 8 - Accrued Expenses

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 8. Accrued Expenses

Accrued expenses consisted of the following:

	June 30, 2024		July 2, 2023
	(in thousands)
Payroll and employee benefits	$	29,954	$	33,927
Deferred revenue		25,009		30,811
Accrued marketing expenses		10,709		13,679
Accrued florist payout		9,526		13,437
Accrued purchases		15,338		18,351
Other		30,767		31,709
Accrued expenses	$	121,303	$	141,914

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Note 9 - Long-term Debt

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 9. Long-Term Debt

The Company’s current and long-term debt consists of the following:

	June 30, 2024			July 2, 2023
	(in thousands)
Revolver (1)	$	-		$	-
Term Loan (1)		190,000			200,000
Deferred financing costs		(2,887	)		(3,609	)
Total debt		187,113			196,391
Less: current maturities of long-term debt		10,000			10,000
Long-term debt, net	$	177,113		$	186,391

(1) On  May 31, 2019, the Company and certain of its U.S. subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2019 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company’s existing amended and restated credit agreement dated as of  December 23, 2016 to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately 29 months to  May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan was payable in 19 quarterly installments of principal and interest beginning on  September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from  January 1 through  August 1, was able to be used for working capital and general corporate purposes, subject to certain restrictions. For each borrowing under the Existing Credit Agreement (as defined below), the Company was able to elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) a LIBOR rate plus 1%, or (2) an adjusted LIBOR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio.   On  August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amended the 2019 Credit Agreement to, among other modifications: (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from  January 1 through  August 1 for each fiscal year of the Company.    The 2020 Term Loan was payable in 15 quarterly installments of principal and interest beginning on  September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity on  May 31, 2024.   On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan.

On August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amended the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to modify certain financial covenants.

On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”) to, among other modifications: (i) increase the amount of the outstanding term loan from approximately $150 million to $200 million, (ii) decrease the amount of the commitments in respect of the revolving credit facility from $250 million to $225 million, (iii) extend the maturity date of the outstanding term loan and the revolving credit facilities by approximately 48 months to June 27, 2028, and (iv) increase the applicable interest rate margins for SOFR and base rate loans by 25 basis points.

For each borrowing under the Third Amended Credit Agreement, the Company may elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.10% for all interest periods.

The Third Amended Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of June 30, 2024. The Third Amended Credit Agreement is secured by substantially all of the assets of the Company.

Future principal term loan payments under the Third Amended Credit Agreement are as follows: $10.0 million – Fiscal 2025, $20.0 million – Fiscal 2026, $20.0 million – Fiscal 2027, and $140.0 million – Fiscal 2028.

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Note 10 - Fair Value Measurements

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 10. Fair Value Measurements

Cash and cash equivalents, trade and other receivables, prepaids, accounts payable and accrued expenses are reflected in the consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these instruments. Although no trading market exists, the Company believes that the carrying amount of its debt approximates fair value due to its variable nature (these are level 2 investments). The Company’s investments in non-marketable equity instruments of private companies are carried at cost and are periodically assessed for other-than-temporary impairment, when an event or circumstances indicate that an other-than-temporary decline in value may have occurred. The Company’s remaining financial assets and liabilities are measured and recorded at fair value (see table below). The Company’s non-financial assets, such as definite lived intangible assets and property, plant and equipment, are recorded at cost and are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred. Goodwill and indefinite lived intangibles are tested for impairment annually, or more frequently, if events occur or circumstances change such that it is more likely than not that an impairment may exist, as required under the accounting standards.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the guidance are described below:

Level 1	Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2	Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3	Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents by level, within the fair value hierarchy, financial assets and liabilities measured at fair value on a recurring basis:

	Carrying		Fair Value Measurements
	Value		Assets (Liabilities)
			Level 1		Level 2		Level 3
	(in thousands)
Assets (liabilities) as of June 30, 2024:
Trading securities held in a “rabbi trust” (1)	$	32,805	$	32,805	$	-	$	-
	$	32,805	$	32,805	$	-	$	-
Assets (liabilities) as of July 2, 2023:
Trading securities held in a “rabbi trust” (1)	$	22,617	$	22,617	$	-	$	-
	$	22,617	$	22,617	$	-	$	-

(1) The Company has established a NQDC Plan for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in the “rabbi trust” are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets.

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Note 11 - Income Taxes

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 11. Income Taxes

Significant components of the income tax provision are as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Current provision (benefit):
Federal	$	11,774		$	976		$	(1,676	)
State		161			1,572			1,589
Current income tax expense (benefit)		11,935			2,548			(87	)
Deferred provision (benefit):
Federal		(14,246	)		(3,145	)		2,679
State		2,514			(1,463	)		(1,100	)
Deferred income tax expense (benefit)		(11,732	)		(4,608	)		1,579
Income tax expense (benefit)	$	203		$	(2,060	)	$	1,492

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
Tax at U.S. statutory rates		21.0	%		21.0	%		21.0	%
State income taxes, net of federal tax benefit		(8.1	)		(0.2	)		4.2
Capital loss expiration		-			-			15.5
Non-deductible impairment charge		-			(16.8	)		-
Valuation allowance change		(28.5	)		(0.2	)		(19.8	)
Non-deductible compensation		(0.6	)		(2.1	)		5.3
Excess tax benefit/shortfalls from stock-based compensation		(11.9	)		(1.7	)		(16.1	)
Tax credits		16.9			2.7			(3.9	)
Enhanced deductions		11.8			2.6			(2.1	)
Other, net		(4.0	)		(0.9	)		0.7
Effective tax rate		(3.4	)%		4.4	%		4.8	%

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company's deferred income tax assets (liabilities) are as follows:

	June 30, 2024			July 2, 2023
	(in thousands)
Deferred income tax assets:
Loss and carryforwards	$	8,096		$	13,598
Accrued expenses and reserves		3,146			3,531
Inventory		5,417			4,422
Stock-based compensation		1,767			1,549
Deferred compensation		6,815			3,602
Operating lease liability		30,763			33,186
Gross deferred income tax assets		56,004			59,888
Less: Valuation allowance		(4,868	)		(3,182	)
Deferred tax assets, net		51,136			56,706
Deferred income tax liabilities:
Other intangibles		(10,693	)		(14,916	)
Tax in excess of book depreciation		(31,206	)		(41,826	)
Operating lease right-of-use asset		(28,639	)		(31,098	)
Deferred tax liabilities		(70,538	)		(87,840	)
Net deferred income tax liabilities	$	(19,402	)	$	(31,134	)

At June 30, 2024, the Company’s federal enhanced deduction and carryforwards were $3.6 million, tax effected, which if not utilized will begin to expire in 2027. At June 30, 2024, the Company’s state and foreign net operating loss carryforwards were $2.9 million and $1.3 million, tax effected, respectively, which if not utilized will begin to expire in Fiscal 2025 and Fiscal 2034, respectively.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.  During Fiscal 2024, the Company recorded valuation allowances of $1.7 million relating to certain state and foreign jurisdictions and concluded no further valuation allowances were necessary despite a three-year cumulative loss. This is based on a detailed analysis of future taxable income, with a particular focus on the scheduling of temporary differences that are expected to reverse in periods where the Company anticipates taxable income. Specifically, the timing and amount of future reversals of deferred tax liabilities are expected to fully offset the Company’s deferred tax assets, allowing it to realize their value without relying on additional sources of taxable income. At June 30, 2024 and July 2, 2023, the Company had valuation allowances of approximately $4.9 million and $3.2 million, respectively, primarily related to certain state and foreign net operating losses.

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company’s last completed U.S. federal examination was for Fiscal 2018.  Fiscal 2021, Fiscal 2022, and Fiscal 2023 remain subject to U.S. federal examination. Due to nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from Fiscal 2020. The Company's foreign income tax filings from Fiscal 2017 forward are open for examination by its respective foreign tax authorities, mainly Canada and Brazil.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At June 30, 2024, the Company has an unrecognized tax benefit, including accrued interest and penalties, of approximately $3.2 million all of which if fully recognized would impact our effective tax rate. The Company believes that $0.4 million of the unrecognized tax positions will be resolved over the next twelve months.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Years ended
	June 30, 2024			July 2, 2023		July 3, 2022
	(in thousands)
Beginning balance	$	1,724		$	1,374	$	1,134
Increases on tax positions for prior years		1,100			30		21
Increases on tax positions for current year		387			320		267
Settlements		-			-		(19	)
Statute of limitation expirations		(431	)		-		(29	)
Ending balance	$	2,780		$	1,724	$	1,374

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Note 12 - Capital Stock

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Capital Stock Disclosure [Text Block]

Note 12. Capital Stock

Holders of Class A common stock generally have the same rights as the holders of Class B common stock, except that holders of Class A common stock have one vote per share and holders of Class B common stock have 10 votes per share on all matters submitted to the vote of stockholders. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters presented to the stockholders for their vote or approval, except as may be required by Delaware law. Class B common stock may be converted into Class A common stock at any time on a one-for-one share basis. Each share of Class B common stock will automatically convert into one share of Class A common stock upon its transfer, with limited exceptions. During Fiscal 2023 and 2022,181,393 and 904,000 shares of Class B common stock, respectively, were converted into shares of Class A common stock.  During Fiscal 2024, no shares of Class B common stock were converted into shares of Class A common stock.

The Company has a stock repurchase plan through which purchases can be made from time to time in the open market and through privately negotiated transactions, subject to general market conditions. The repurchase program is financed utilizing available cash. On April 22, 2021, the Company’s Board of Directors authorized an increase to its stock repurchase plan of up to $40.0 million. On February 3, 2022, the Company’s Board of Directors authorized an additional increase to its stock repurchase plan of up to $40.0 million. The Company repurchased a total of $10.4 million (1,079,415 shares), $1.2 million (147,479 shares), and $38.2 million (1,592,555 shares) during the fiscal years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively, under this program. Included in the repurchase is stock withheld to cover required employee withholdings, upon vesting of restricted stock awards.  As of June 30, 2024, $21.6 million remains authorized under the plan.

The Company has stock options and restricted stock awards outstanding to participants under the 1-800-FLOWERS.COM 2003 Long Term Incentive and Share Award Plan (as amended and restated as of October 22, 2009, October 28, 2011, September 14, 2016, October 15, 2020, and October 3, 2023, the “Plan”). The Plan is a broad-based, long-term incentive program that is intended to provide incentives to attract, retain and motivate employees, consultants and directors in order to achieve the Company’s long-term growth and profitability objectives. The Plan provides for the grant to eligible employees, consultants and directors of stock options, share appreciation rights (“SARs”), restricted shares, restricted share units, performance shares, performance units, dividend equivalents, and other share-based awards (collectively, “Awards”).  

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Note 13 - Stock Based Compensation

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 13. Stock Based Compensation

The Plan is administered by the Compensation Committee or such other Board committee (or the entire Board) as may be designated by the Board.

The amounts of stock-based compensation expense recognized within operating income (1) in the periods presented are as follows:

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Stock options	$	4,422	$	2,536	$	(41	)
Restricted stock awards		6,266		5,798		7,988
Total		10,688		8,334		7,947
Deferred income tax benefit		2,571		2,042		1,943
Stock-based compensation expense, net	$	8,117	$	6,292	$	6,004

(1) Stock-based compensation expense has not been allocated between business segments, but is reflected as part of Corporate overhead (See Note 15 - Business Segments for details).

Stock-based compensation expense is recorded within the following line items of operating expenses:

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Marketing and sales	$	4,916	$	3,818	$	3,414
Technology and development		855		698		319
General and administrative		4,917		3,818		4,214
Total	$	10,688	$	8,334	$	7,947

Stock Options

The weighted average fair value of stock options on the date of grant, and the assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model, were as follows:

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022 (1)
Weighted average fair value of options granted	$	6.09		$	5.13			n/a
Expected volatility		56	%		52	%		n/a
Expected life (in years)		7.0			7.5			n/a
Risk-free interest rate	3.9		%		4.3	%		n/a
Expected dividend yield	0.0		%		0.0	%		n/a

(1) No options were granted during the fiscal year ended July 3, 2022.

The expected volatility of the option is determined using historical volatilities based on historical stock prices. The Company estimated the expected life of options granted based upon the historical weighted average. The risk-free interest rate is determined using the yield available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the option. The Company has never paid a dividend, and as such the dividend yield is 0.0%.

The following table summarizes stock option activity during the year ended June 30, 2024:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Options			Price		Term		Value
						(in years)		(in thousands)
Outstanding beginning of period		2,285,608		$	8.59
Granted		1,000,000		$	10.13
Exercised		(38,240	)	$	8.59
Forfeited/Expired		(61,831	)	$	8.59
Outstanding end of period		3,185,537		$	9.07		8.34	$	2,033
Exercisable at June 30, 2024		707,806		$	8.59		7.80	$	658

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of Fiscal 2024 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on June 30, 2024. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised during the years ended  June 30, 2024, July 2, 2023, July 3, 2022, were$0.1 million, $0.0 million, and $9.2 million, respectively.

The following table summarizes information about stock options outstanding at June 30, 2024:

		Options Outstanding					Options Exercisable
				Weighted‑
				Average	Weighted‑				Weighted‑
				Remaining	Average				Average
		Options		Contractual Life	Exercise		Options		Exercise
Exercise Price		Outstanding		(years)	Price		Exercisable		Price
$	8.59		2,185,537	7.8	$	8.59		707,806	$	8.59
$	10.13		1,000,000	9.5	$	10.13		-	$	-
			3,185,537	8.3	$	9.07		707,806	$	8.59

As of June 30, 2024, the total future compensation cost related to non-vested options not yet recognized in the statement of operations was $10.6 million and the weighted average period over which these awards are expected to be recognized was 2.6 years.

Restricted Stock

The Company grants shares of Common Stock to its employees that are subject to restrictions on transfer and risk of forfeiture until fulfillment of applicable service conditions and, in certain cases, holding periods (Restricted Stock).

The following table summarizes the activity of non-vested restricted stock during the year ended June 30, 2024:

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Non-vested – beginning of period		1,231,634		$	15.01
Granted		1,396,457		$	10.02
Vested		(480,708	)	$	15.22
Forfeited		(442,934	)	$	10.26
Non-vested - end of period		1,704,449		$	12.09

The fair value of non-vested shares is determined based on the closing stock price on the grant date. As of June 30, 2024, there was $13.9 million of total unrecognized compensation cost related to non-vested, restricted, stock-based compensation to be recognized over a weighted-average period of 2.3 years.

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Note 14 - Employee Retirement Plans

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Retirement Benefits [Text Block]

Note 14. Employee Retirement Plans

The Company has a 401(k) Profit Sharing Plan covering substantially all of its eligible employees. All employees who have attained the age of 21 are eligible to participate upon completion of one month of service. Participants may elect to make voluntary contributions to the 401(k) plan in amounts not exceeding federal guidelines. On an annual basis, the Company, as determined by its Board of Directors, may make certain discretionary contributions. Employees are vested in the Company's contributions based upon years of service. The Company contributed $1.7 million, $1.9 million, and $1.9 million during Fiscal 2024, 2023, and 2022, respectively.

The Company also has a nonqualified supplemental deferred compensation plan for certain executives pursuant to Section 409A of the Internal Revenue Code. Participants can defer from 1% up to a maximum of 100% of salary and performance and non-performance based bonus. There were no Company contributions to the plan during Fiscal 2024, 2023 and 2022. Distributions will be made to participants upon termination of employment or death in a lump sum, unless installments are selected by the participant. As of June 30, 2024 and July 2, 2023, these plan liabilities, which are included in “Other liabilities” within the Company’s consolidated balance sheets, totaled $32.8 million and $22.6 million, respectively. The associated plan assets, which are subject to the claims of the creditors, are primarily invested in mutual funds and are included in “Other assets” within the Company’s consolidated balance sheets. The gains (losses) on these investments, which were $6.9 million, ($0.8 million), and ($3.6 million), for the years ended  June 30, 2024,  July 2, 2023, and  July 3, 2022, respectively, are included in “Other expense (income), net", with a corresponding offset in "General and administrative" expenses, within the Company’s consolidated statements of operations.

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Note 15 - Business Segments

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 15. Business Segments

The Company’s management reviews the results of the Company’s operations by the following three business segments:

• Consumer Floral & Gifts,

• BloomNet, and

• Gourmet Foods & Gift Baskets

Segment performance is measured based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. As such, management’s measure of profitability for these segments does not include the effect of corporate overhead (see (a) below), nor does it include depreciation and amortization, other expense (income), net and income taxes, or stock-based compensation, which are included within corporate overhead. Assets and liabilities are reviewed at the consolidated level by management and not accounted for by segment.

	Years ended
Net revenues	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Net revenues:
Consumer Floral & Gifts	$	849,791		$	920,510		$	1,059,570
BloomNet		107,802			133,183			145,702
Gourmet Foods & Gift Baskets		874,262			965,191			1,004,272
Corporate		796			375			201
Intercompany eliminations		(1,230	)		(1,406	)		(1,860	)
Total net revenues	$	1,831,421		$	2,017,853		$	2,207,885

	Years ended
Operating Income (Loss)	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Contribution Margin:
Consumer Floral & Gifts	$	67,278		$	95,535		$	104,319
BloomNet		33,766			37,197			42,515
Gourmet Foods & Gift Baskets		84,508			12,895			62,021
Segment Contribution Margin Subtotal		185,552			145,627			208,855
Corporate (a)		(133,872	)		(126,965	)		(117,676	)
Depreciation and amortization		(53,752	)		(53,673	)		(49,078	)
Operating income (loss)	$	(2,072	)	$	(35,011	)	$	42,101

(a) Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as stock-based compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment. 

The following tables represent a disaggregation of revenue from contracts with customers, by channel:

	Years Ended
	Consumer Floral & Gifts						BloomNet						Gourmet Foods & Gift Baskets						Corporate and Eliminations									Consolidated
	June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,			July 2,			July 3,			June 30,			July 2,			July 3,
	2024		2023		2022		2024		2023		2022		2024		2023		2022		2024			2023			2022			2024			2023			2022
	(in thousands)
Net revenues
E-commerce	$	840,569	$	911,302	$	1,049,821	$	-	$	-	$	-	$	773,630	$	833,320	$	884,827	$	-		$	-		$	-		$	1,614,199		$	1,744,622		$	1,934,648
Other		9,222		9,208		9,749		107,802		133,183		145,702		100,632		131,871		119,445		(434	)		(1,031	)		(1,659	)		217,222			273,231			273,237
Total net revenues	$	849,791	$	920,510	$	1,059,570	$	107,802	$	133,183	$	145,702	$	874,262	$	965,191	$	1,004,272	$	(434	)	$	(1,031	)	$	(1,659	)	$	1,831,421		$	2,017,853		$	2,207,885
Other revenues detail
Retail and other		9,222		9,208		9,749		-		-		-		9,534		9,751		10,134		-			-			-			18,756			18,959			19,883
Wholesale		-		-		-		42,362		50,075		53,957		91,098		122,120		109,311		-			-			-			133,460			172,195			163,268
BloomNet services		-		-		-		65,440		83,108		91,745		-		-		-		-			-			-			65,440			83,108			91,745
Corporate		-		-		-		-		-		-		-		-		-		796			375			201			796			375			201
Eliminations		-		-		-		-		-		-		-		-		-		(1,230	)		(1,406	)		(1,860	)		(1,230	)		(1,406	)		(1,860	)
Total other revenues	$	9,222	$	9,208	$	9,749	$	107,802	$	133,183	$	145,702	$	100,632	$	131,871	$	119,445	$	(434	)	$	(1,031	)	$	(1,659	)	$	217,222		$	273,231		$	273,237

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Note 16 - Leases

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 16. Leases

The Company currently leases plants, warehouses, offices, store facilities, and equipment under various leases through Fiscal 2036. While most lease agreements are of a long-term nature (over a year), the Company also enters into short-term leases, primarily for seasonal needs. Lease agreements may contain renewal options and rent escalation clauses and require the Company to pay real estate taxes, insurance, common area maintenance and operating expenses applicable to the leased properties. The Company accounts for its leases in accordance with ASC 842.

At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time, by assessing whether the Company has the right to obtain substantially all of the economic benefits from the use of the identified asset, and the right to direct the use of the identified asset.

At the lease commencement date, the Company determines if a lease should be classified as an operating or a finance lease (the Company currently has no finance leases) and recognizes a corresponding lease liability and a right-of-use asset on its Consolidated Balance Sheet. The lease liability is initially and subsequently measured as the present value of the remaining fixed minimum rental payments (including base rent and fixed common area maintenance) using discount rates as of the commencement date. Variable payments (including most utilities, real estate taxes, insurance and variable common area maintenance) are expensed as incurred. Further, the Company elected a short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The right-of-use asset is initially and subsequently measured at the carrying amount of the lease liability adjusted for any prepaid or accrued lease payments, remaining balance of lease incentives received, unamortized initial direct costs, or impairment charges relating to the right-of-use asset. Right-of-use assets are assessed for impairment using the long-lived assets impairment guidance. The discount rate used to determine the present value of lease payments is the Company’s estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the Company generally cannot determine the interest rate implicit in the lease.

The Company recognizes expense for its operating leases on a straight-line basis over the lease term. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Renewal option periods are included in the measurement of lease liability, where the exercise is reasonably certain to occur. Key estimates and judgments in accounting for leases include how the Company determines: (1) lease payments, (2) lease term, and (3) the discount rate used in calculating the lease liability.

Additional information related to our leases is as follows:

	Years Ended
	June 30, 2024			July 2, 2023
	(in thousands)
Lease costs:
Operating lease costs	$	22,775		$	22,208
Variable lease costs		26,326			24,582
Short-term lease cost		4,144			5,307
Sublease income		(999	)		(988	)
Total lease costs	$	52,246		$	51,109

	Years Ended
	June 30, 2024		July 2, 2023
	(in thousands)
Cash paid for amounts included in measurement of operating lease liabilities	$	22,699	$	21,020
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,799	$	12,040

	June 30, 2024			July 2, 2023
Weighted-average remaining lease term - operating leases (in years)		7.9			8.7
Weighted-discount rate - operating leases		4.3	%		4.0	%

Maturities of lease liabilities in accordance with ASC 842 as of June 30, 2024 and reconciliation to balance sheet are as follows (in thousands):

2025	$	21,344
2026		20,487
2027		17,591
2028		16,596
2029		16,017
Thereafter		52,798
Total Future Minimum Lease Payments		144,833
Less: Imputed Remaining Interest		22,456
Total Operating Lease Liabilities		122,377
Less: Current portion of long-term operating lease liabilities		16,511
Long-term operating lease liabilities	$	105,866

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Note 17 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 17. Commitments and Contingencies

Other Commitments

The Company’s purchase commitments consist primarily of inventory, equipment and technology (hardware and software) purchase orders made in the ordinary course of business, most of which have terms less than one year. As of June 30, 2024, the Company had fixed and determinable off-balance sheet purchase commitments with remaining terms in excess of one year of approximately $21.8 million, primarily related to the Company’s technology infrastructure and inventory commitments.

The Company had approximately $1.5 million and $2.7 million in unused stand-by letters of credit as of June 30, 2024 and July 2, 2023, respectively.

Litigation

Call Center Worker Claim:

In March of 2018, a putative class action lawsuit was filed against a subsidiary of the Company (the “Subsidiary”) in the U.S. District Court for the District of Oregon, Medford Division (the “Court”), alleging violations of the federal Fair Labor Standards Act (“FLSA”) and Oregon state law. The complaint was brought on behalf of a putative class of call center workers and alleged that certain Subsidiary policies and practices resulted in class members’ performance of unpaid work. The plaintiff sought class certification, compensation for alleged unpaid and underpaid wages, civil penalties, prejudgment interest, liquidated damages, litigation costs, and attorneys’ fees. Following mediation, the parties reached an agreement in April 2022 to resolve all claims. In September 2022, the Court granted final approval of the settlement agreement, and in November 2022, the Company remitted payment of approximately $2.9 million, which was previously accrued during the quarter ended March 27, 2022, and was included in "Accrued expenses" in the consolidated balance sheets at July 3, 2022. In entering into the settlement agreement, the Subsidiary made no admission of liability.

Subsequent to June 30, 2024, the Company settled a pre-existing litigation matter for $1.2 million, which was accrued as of June 30, 2024.

In addition, there are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its businesses. It is the opinion of management, after consultation with counsel, that the final resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company's consolidated financial position, results of operations or liquidity.

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Note 18 - Subsequent Events

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Subsequent Events [Text Block]

Note 18. Subsequent Events

Acquisition of Scharffen Berger

On July 1, 2024, the Company completed its acquisition of Scharffen Berger, a chocolate manufacturing company, expanding the Company's product offerings in the Gourmet Foods & Gift Baskets Segment.

The Company used cash on its balance sheet to fund the approximately $3.3 million purchase. Scharffen Berger annual revenue, based on its most recent available financial information, is deemed immaterial to the Company's consolidated financial statements.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

1-800-FLOWERS.COM, Inc. and Subsidiaries

Schedule II - Valuation and Qualifying Accounts

			Additions
			Charged to			Charged to
	Balance at		Costs			Other					Balance at
	Beginning		and			Accounts-		Deductions-			End of
Description	of Period		Expenses			Describe		Describe (a)			Period
Reserves and allowances deducted from asset accounts:
Reserve for estimated credit losses-accounts/notes receivable
Year Ended June 30, 2024	$	5,836,000	$	251,000		$	-	$	(3,330,000	)	$	2,757,000
Year Ended July 2, 2023	$	2,396,000	$	3,991,000		$	-	$	(551,000	)	$	5,836,000
Year Ended July 3, 2022	$	4,032,000	$	(411,000	)	$	-	$	(1,225,000	)	$	2,396,000
Valuation allowance for deferred tax assets
Year Ended June 30, 2024	$	3,182,000	$	1,882,000		$	-	$	(196,000	)	$	4,868,000
Year Ended July 2, 2023	$	3,096,000	$	86,000		$	-	$	-		$	3,182,000
Year Ended July 3, 2022	$	9,258,000	$	58,000		$	-	$	(6,220,000	)	$	3,096,000
Valuation allowance for inventory
Year Ended June 30, 2024	$	9,910,000	$	8,980,000		$	-	$	(10,900,000	)	$	7,990,000
Year Ended July 2, 2023	$	11,370,000	$	3,010,000		$	-	$	(4,470,000	)	$	9,910,000
Year Ended July 3, 2022	$	8,680,000	$	4,670,000		$	-	$	(1,980,000	)	$	11,370,000

(a) Reduction in reserve due to amounts written off/recovered. 

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Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Presentation

The consolidated financial statements include the accounts of 1-800-FLOWERS.COM, Inc. and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company’s net revenues from international sources were not material during fiscal years 2024, 2023 and 2022.

Fiscal Period, Policy [Policy Text Block]

Fiscal Year

The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to June 30. Fiscal years 2024 and 2023, which ended on June 30, 2024 and July 2, 2023, respectively, each consisted of 52 weeks. Fiscal year 2022, which ended on July 3, 2022, consisted of 53 weeks.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents consist of demand deposits with banks, highly liquid money market funds, United States government securities, overnight repurchase agreements and commercial paper with maturities of three months or less when purchased.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are valued at the lower of cost or net realizable value. Inventories are accounted for using a standard costing methodology, which approximates cost on a first-in, first-out basis.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation expense is computed using the straight-line method over the assets’ estimated useful lives. Amortization of leasehold improvements and capital leases is computed using the straight-line method over the shorter of the estimated useful lives or the initial lease terms. The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized on a straight-line basis over the estimated useful life of the software. Orchards in production, consisting of direct labor and materials, supervision and other items, are capitalized as part of capital projects in progress – orchards until the orchards produce fruit in commercial quantities, at which time they are reclassified to orchards in production. Estimated useful lives are periodically reviewed, and where appropriate, changes are made prospectively.

The Company’s property, plant and equipment are depreciated using the following estimated lives:

Building and building improvements (years)	10 - 40
Leasehold improvements (years)	3 - 10
Furniture, fixtures and production equipment (years)	3 - 20
Software (years)	3 - 7
Orchards in production and land improvements (years)	15 - 45

Property, plant and equipment are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in each business combination, with the carrying value of the Company’s goodwill allocated to its reporting units, in accordance with the acquisition method of accounting. Goodwill is not amortized, but it is subject to an annual assessment for impairment, which the Company performs during the fourth quarter, or more frequently if events occur or circumstances change such that it is more likely than not that an impairment may exist. The Company tests goodwill for impairment at the reporting unit level. The Company identifies its reporting units by assessing whether the components of its operating segments constitute businesses for which discrete financial information is available and management of each reporting unit regularly reviews the operating results of those components.

In applying the goodwill impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test (“Step 1”). Under the Step 0 test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value. Qualitative factors may include, but are not limited to, economic conditions, industry and market considerations, cost factors, overall financial performance of the reporting unit and other entity and reporting unit specific events. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the fair value of the reporting unit is less than the carrying value, then performing the Step 1 quantitative test is necessary.

Step 1 of the quantitative test requires comparison of the fair value of each of the reporting units to the respective carrying value. If the carrying value of the reporting unit is less than the fair value, no impairment exists. Otherwise, the Company would recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value up to the amount of goodwill allocated to that reporting unit.

The Company generally estimates the fair value of a reporting unit using an equal weighting of the income and market approaches. The Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. Under the income approach, the Company uses a discounted cash flow methodology, which requires management to make significant estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, perpetual growth rates, and long-term discount rates, among others. For the market approach, the Company uses the guideline public company method. Under this method, the Company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as the reporting units, to create valuation multiples that are applied to the operating performance of the reporting unit being tested, in order to obtain their respective fair values. The Company also reconciles the aggregate fair values of its reporting units determined in the first step (as described above) to its current market capitalization, allowing for a reasonable control premium.

During Fiscal 2022, as a result of changes within the macroeconomic environment, geopolitical pressures and the Company’s financial performance and market capitalization, the Company performed a Step 1 analysis, which indicated that the fair values of the Consumer Floral & Gifts and Gourmet Foods & Gift Baskets reporting units exceeded their respective carrying amounts.

During its quarterly assessment in the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred for its Gourmet Foods & Gift Baskets reporting unit. As such, the Company performed a Step 1 analysis of the reporting unit’s goodwill, intangibles and long-lived assets as of April 2, 2023, and fully impaired the related goodwill, and partially impaired certain tradenames within the reporting unit. The Company concluded that the definite-lived and other long-lived assets of the reporting unit were not impaired.

As of its annual impairment testing date during the fourth quarter of Fiscal 2023, the Company completed a step 0 analysis of its Consumer Floral & Gifts reporting unit, the only reporting unit with goodwill at the time, and concluded that it was not "more likely than not" that the fair value of its reporting unit was less than its carrying value.

As of its annual impairment testing date during the fourth quarter of Fiscal 2024, the Company completed a step 0 analysis of its Consumer Floral & Gifts and BloomNet reporting units, the only reporting units with goodwill, and concluded that it was not "more likely than not" that the fair values of its reporting units were less than their carrying values.  

See Note 6 – Goodwill and Intangible Assets for further information.

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Other Intangibles, net

Other intangibles consist of definite-lived intangible assets (such as investment in licenses, customer lists, and others) and indefinite-lived intangible assets (such as acquired trade names and trademarks). The cost of definite-lived intangible assets is amortized to reflect the pattern of economic benefits consumed, over the estimated periods benefited, ranging from 3 to 16 years, while indefinite-lived intangible assets are not amortized.

Definite-lived intangibles are reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. When such events or changes in circumstances occur, a recoverability test is performed comparing projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying value. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, which is determined by discounting future cash flows.

The Company tests indefinite-lived intangible assets for impairment at least annually, during the fourth quarter, or whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. In applying the impairment test, the Company has the option to perform a qualitative test (also known as “Step 0”) or a quantitative test. Under the Step 0 test, the Company assesses qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Qualitative factors may include, but are not limited to economic conditions, industry and market considerations, cost factors, financial performance, legal and other entity and asset specific events. If, after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the indefinite-lived intangible asset is impaired, then performing the quantitative test is necessary. The quantitative impairment test for indefinite-lived intangible assets encompasses calculating a fair value of an indefinite-lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the fair value, impairment is recognized for the difference. To determine fair value of other indefinite-lived intangible assets, the Company uses an income approach, the relief-from-royalty method. This method assumes that, in lieu of ownership, a third party would be willing to pay a royalty in order to obtain the rights to use the comparable asset. Other indefinite-lived intangible assets’ fair values require significant judgments in determining both the assets’ estimated cash flows as well as the appropriate discount and royalty rates applied to those cash flows to determine fair value.

During Fiscal 2022, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangibles exceeded their respective carrying value.

As noted in the Goodwill section above, during the third quarter of Fiscal 2023, the Company concluded that a triggering event had occurred within its Gourmet Foods & Gift Baskets reporting unit and, as such, performed an impairment test of the indefinite lived intangibles, which resulted in a partial impairment of certain tradenames within the reporting unit.

During the fourth quarter of Fiscal 2023, the Company performed a Step 0 analysis and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.

During its quarterly assessment in the second quarter of fiscal year 2024, as a result of a decline in the actual and projected revenue for the Company’s PersonalizationMall tradename (an indefinite-lived intangible asset), as well as a higher discount rate resulting from the higher interest rate environment, the Company determined that an impairment assessment was required for this tradename. This assessment resulted in a partial impairment of this tradename.  

During the fourth quarter of fiscal year 2024, the Company performed a Step 0 analysis for its indefinite-lived intangible assets, excluding its PersonalizationMall tradename, and determined that it was not “more likely than not” that the fair values of its indefinite-lived intangibles were less than their carrying amounts.  For the Company's PersonalizationMall tradename, the Company performed a quantitative test, which determined that the estimated fair value of the Company's intangible asset exceeded its respective carrying amount.

See Note 6 – Goodwill and Intangible Assets for further information.

 

Business Combinations Policy [Policy Text Block]

Business Combinations

The Company accounts for business combinations in accordance with Accounting Standards Codification ("ASC") Topic 805, which requires, among other things, the acquiring entity in a business combination to recognize the fair value of all the assets acquired and liabilities assumed; the recognition of acquisition-related costs in the consolidated results of operations; the recognition of restructuring costs in the consolidated results of operations for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at their fair values on the acquisition date with subsequent adjustments recognized in the consolidated results of operations. The fair values assigned to identifiable intangible assets acquired are determined primarily by using an income approach, which is based on assumptions and estimates made by management. Significant assumptions utilized in the income approach are based on company specific information and projections that are not observable in the market and are therefore considered Level 3 measurements. The excess of the purchase price over the fair value of the identified assets and liabilities is recorded as goodwill. Operating results of the acquired entity are reflected in the Company’s consolidated financial statements from date of acquisition.

Deferred Charges, Policy [Policy Text Block]

Deferred Catalog Costs

The Company capitalizes the costs of producing and distributing its catalogs and expenses them upon mailing. Included within prepaid and other current assets were $1.5 million and $2.4 million at June 30, 2024 and July 2, 2023, respectively, relating to prepaid catalog expenses.

Investment, Policy [Policy Text Block]

Investments

Equity investments without a readily determinable fair value

Investments in non-marketable equity instruments of private companies, where the Company does not possess the ability to exercise significant influence, are accounted for at cost, less impairment (assessed qualitatively at each reporting period), adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. These investments are included within “Other assets” in the Company’s consolidated balance sheets. The aggregate carrying amount of the Company’s cost method investments was $2.4 million as of June 30, 2024 and $2.6 million as of July 2, 2023. 

Equity investments with a readily determinable fair value

The Company also holds certain trading securities associated with its Non-Qualified Deferred Compensation Plan (“NQDC Plan”). These investments are measured using quoted market prices at the reporting date and are included within the “Other assets” line item in the consolidated balance sheets (see Note 10 - Fair Value Measurements).

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions, although bank deposits, at times, may exceed federally insured limits. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States, and the fact that a substantial portion of receivables are related to balances owed by major credit card companies. Allowances relating to consumer, corporate and franchise accounts receivable ($2.8 million at June 30, 2024 and $5.8 million at July 2, 2023) have been recorded based upon previous experience and management’s evaluation.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

Net revenue is measured based on the amount of consideration that we expect to receive, reduced by discounts and estimates for credits and returns (calculated based upon previous experience and management’s evaluation). Service and outbound shipping charged to customers are recognized at the time the related merchandise revenues are recognized and are included in net revenues. Inbound and outbound shipping and delivery costs are included in cost of revenues. Net revenues exclude sales and other similar taxes collected from customers.

A description of our principal revenue generating activities is as follows:

- E-commerce revenues - consumer products sold through our online and telephonic channels. Revenue is recognized when control of the merchandise is transferred to the customer, which generally occurs upon shipment. Payment is typically due prior to the date of shipment.

- Retail revenues - consumer products sold through our retail stores. Revenue is recognized when control of the goods is transferred to the customer at the point of sale, at which time payment is received.

- Wholesale revenues - products sold to our wholesale customers for subsequent resale. Revenue is recognized when control of the goods is transferred to the customer, in accordance with the terms of the applicable agreement. Payment terms are typically 30 days from the date control over the product is transferred to the customer.

- BloomNet services - membership fees as well as other service offerings to florists. Membership and other subscription-based fees are recognized monthly as earned. Services revenues related to orders sent through the floral network are variable, based on either the number of orders or the value of orders, and are recognized in the period in which the orders are delivered. The contracts within BloomNet services are typically month-to-month and as a result no consideration allocation is necessary across multiple reporting periods. Payment is typically due less than 30 days from the date the services were performed. 

Deferred Revenues

Deferred revenues are recorded when the Company has received consideration (i.e., advance payment) before satisfying its performance obligations. As such, customer orders are recorded as deferred revenue prior to shipment or rendering of product or services. Deferred revenues primarily relate to e-commerce orders placed, but not shipped, prior to the end of the fiscal period, as well as for subscription programs, including our various food, wine, and plant-of-the-month clubs and our Celebrations Passport® program.

Our total deferred revenue, included in "Accrued expenses" on our consolidated balance sheets, as of July 3, 2022, was $33.7 million, of which $33.1 million was recognized during the year ended July 2, 2023.  Our total deferred revenue as of  July 2, 2023 was $30.8 million of which, $30.2 million was recognized as revenue during the year ended June 30, 2024. The deferred revenue balance as of June 30, 2024 was $25.0 million.

Cost of Goods and Service [Policy Text Block]

Cost of Revenues

Cost of revenues consists primarily of florist fulfillment costs (fees paid directly to florists), the cost of floral and non-floral merchandise sold from inventory or through third parties, and associated costs, including inbound and outbound shipping charges. Additionally, cost of revenues includes labor and facility costs related to manufacturing and production operations.

Selling, General and Administrative Expenses, Policy [Policy Text Block]

Marketing and Sales

Marketing and sales expense consists primarily of advertising expenses, catalog costs, online portal and search expenses, retail store and fulfillment operations (other than costs included in cost of revenues), and customer service center expenses, as well as the operating expenses of the Company’s departments engaged in marketing, selling and merchandising activities.

The Company expenses all advertising costs, with the exception of catalog costs (see Deferred Catalog Costs above), at the time the advertisement is first shown. Advertising expense was $283.6 million, $291.9 million and $347.7 million for the years ended June 30, 2024, July 2, 2023, and July 3, 2022, respectively.

Research, Development, and Computer Software, Policy [Policy Text Block]

Technology and Development

Technology and development expense consists primarily of payroll and operating expenses of the Company’s information technology group, costs associated with its websites, including hosting, content development and maintenance and support costs related to the Company’s order entry, customer service, fulfillment and database systems. Costs associated with the acquisition or development of software for internal use are capitalized if the software is expected to have a useful life beyond one year and amortized over the software’s useful life, typically three to seven years. Costs associated with repair maintenance, or the development of website content are expensed as incurred, as the useful lives of such software modifications are less than one year.

Share-Based Payment Arrangement [Policy Text Block]

Stock-Based Compensation

The Company records compensation expense associated with restricted stock awards and other forms of equity compensation based upon the fair value of stock-based awards as measured at the grant date. The cost associated with share-based awards that are subject solely to time-based vesting requirements is recognized over the awards’ service period for the entire award on a straight-line basis. The cost associated with performance-based equity awards is recognized for each tranche over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved.

Derivatives, Policy [Policy Text Block]

Derivatives and Hedging

The Company does not enter into derivative transactions for trading purposes, but rather, on occasion, to manage its exposure to interest rate fluctuations. When entering into these transactions, the Company has periodically managed its floating rate debt using interest rate swaps in order to reduce its exposure to the impact of changing interest rates on its consolidated results of operations and future cash outflows for interest. The Company did not have any open derivative positions at June 30, 2024 and July 2, 2023.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company uses the asset and liability method to account for income taxes. The Company has established deferred tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled. The Company also has net operating loss carryforwards and credit carryforwards in multiple jurisdictions and has recognized deferred assets for those losses and credits.

The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized.  In completing this evaluation, the Company considers available positive and negative evidence. Such evidence includes historical operating results, the existence of cumulative earnings and losses in the most recent fiscal years, taxable income in prior carryback year(s) if permitted under the tax law, the time period over which our temporary differences will reverse, the implementation of feasible and prudent tax planning strategies, and expectations for future pre-tax operating income. Estimating future taxable income is inherently uncertain and requires judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of this evidence, it is more likely than not that all or a portion of the recorded deferred tax assets will not be realized in future periods.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements on a particular tax position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The amount of unrecognized tax benefits (“UTBs”) is adjusted as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. We recognize both accrued interest and penalties, where appropriate, related to UTBs in income tax expense. Assumptions, judgment and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. 

Earnings Per Share, Policy [Policy Text Block]

Net Income (Loss) Per Share

Basic net income (loss) per common share is computed by dividing the net income during the period by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing the net income during the period by the sum of the weighted-average number of common shares outstanding during the period and the potential dilutive common shares (consisting of employee stock options and unvested restricted stock awards). Diluted net loss per common share is computed using the weighted-average number of common shares outstanding during the period and excludes the dilutive potential common shares (consisting of unvested restricted stock awards), as their inclusion would be antidilutive. As a result of the net loss for the years ended June 30, 2024 and July 2, 2023, there is no dilutive impact to the net loss per share calculation.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.  ASU 2023-07 requires enhanced disclosures about significant segment expenses, includes enhanced interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.  ASU 2023-07 is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.  ASU 2023-09 requires the disclosure of additional information with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes and requires greater detail about significant reconciling items in the reconciliation. Additionally, the amendment requires disaggregated information pertaining to taxes paid, net of refunds received, for federal, state, and foreign income taxes.  The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and allows for either a prospective or retrospective approach on adoption. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

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Note 2 - Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Property Plant and Equipment Estimated Useful Lives [Table Text Block]

Building and building improvements (years)	10 - 40
Leasehold improvements (years)	3 - 10
Furniture, fixtures and production equipment (years)	3 - 20
Software (years)	3 - 7
Orchards in production and land improvements (years)	15 - 45

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Note 3 - Net Income (Loss) Per Common Share (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Years Ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	(6,105	)	$	(44,702	)	$	29,610
Denominator:
Weighted average shares outstanding		64,586			64,688			64,977
Effect of dilutive securities:
Employee stock options		-			-			45
Employee restricted stock awards		-			-			595
Total effect of dilutive securities		-			-			640
Adjusted weighted-average shares and assumed conversions		64,586			64,688			65,617
Net income (loss) per common share:
Basic	$	(0.09	)	$	(0.69	)	$	0.46
Diluted	$	(0.09	)	$	(0.69	)	$	0.45

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Note 4 - Acquisitions (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	Vital Choice
	Preliminary					Vital Choice
	Purchase Price					Purchase Price
	Allocation		Measurement Period			Allocation
	October 27, 2021		Interim Adjustments			January 1, 2023
			(in thousands)
Inventory	$	8,653	$	-		$	8,653
Other current assets		929		(474	)		455
Property, plant and equipment		205		(205	)		-
Intangible assets		9,800		(600	)		9,200
Goodwill		4,383		634			5,017
Total assets acquired		23,970		(645	)		23,325
Current liabilities		3,621		(256	)		3,365
Net assets acquired	$	20,349	$	(389	)	$	19,960

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Note 5 - Inventory (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2024		July 2, 2023
	(in thousands)
Finished goods	$	94,590	$	92,582
Work-in-process		25,849		33,818
Raw materials		56,152		64,934
Total inventory	$	176,591	$	191,334

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Note 6 - Goodwill and Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Goodwill [Table Text Block]

					Gourmet
	Consumer				Foods &
	Floral &				Gift
	Gifts		BloomNet		Baskets			Total
	(in thousands)
Balance at July 3, 2022	$	151,600	$	-	$	61,687		$	213,287
Measurement period adjustment for Vital Choice Acquisition		-		-		600			600
Measurement period adjustment for Alice's Table Acquisition		112		-		-			112
Acquisition of Things Remembered		1,664		-		-			1,664
Goodwill impairment		-		-		(62,287	)		(62,287	)
Balance at July 2, 2023	$	153,376	$	-	$	-		$	153,376
Measurement period adjustment for Things Remembered		201		-		-			201
Acquisition of Card Isle		-		2,960		-			2,960
Balance at June 30, 2024	$	153,577	$	2,960	$	-		$	156,537

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block]

		June 30, 2024						July 2, 2023
		Gross						Gross
	Amortization	Carrying		Accumulated				Carrying		Accumulated
	Period (1)	Amount		Amortization		Net		Amount		Amortization		Net
	(in years)	(in thousands)
Intangible assets with determinable lives
Investment in licenses	14 - 16	$	7,420	$	6,674	$	746	$	7,420	$	6,569	$	851
Customer lists	3 - 10		29,647		25,932		3,715		29,071		21,611		7,460
Other	5 - 14		2,946		2,664		282		2,946		2,604		342
Total intangible assets with determinable lives			40,013		35,270		4,743		39,437		30,784		8,653
Trademarks with indefinite lives			111,473		-		111,473		131,235		-		131,235
Total identifiable intangible assets		$	151,486	$	35,270	$	116,216	$	170,672	$	30,784	$	139,888

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Note 7 - Property, Plant and Equipment (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Property, Plant and Equipment [Table Text Block]

	June 30, 2024			July 2, 2023
	(in thousands)
Land	$	33,827		$	33,866
Orchards in production and land improvements		20,604			20,401
Building and building improvements		69,089			67,647
Leasehold improvements		31,289			29,524
Production equipment		131,664			125,297
Furniture and fixtures		9,325			9,102
Computer and telecommunication equipment		42,159			41,859
Software		176,160			181,085
Capital projects in progress		23,172			18,205
Property, plant and equipment, gross		537,289			526,986
Accumulated depreciation and amortization		(313,500	)		(292,417	)
Property, plant and equipment, net	$	223,789		$	234,569

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Note 8 - Accrued Expenses (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Accrued Liabilities [Table Text Block]

	June 30, 2024		July 2, 2023
	(in thousands)
Payroll and employee benefits	$	29,954	$	33,927
Deferred revenue		25,009		30,811
Accrued marketing expenses		10,709		13,679
Accrued florist payout		9,526		13,437
Accrued purchases		15,338		18,351
Other		30,767		31,709
Accrued expenses	$	121,303	$	141,914

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Note 9 - Long-term Debt (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 2024			July 2, 2023
	(in thousands)
Revolver (1)	$	-		$	-
Term Loan (1)		190,000			200,000
Deferred financing costs		(2,887	)		(3,609	)
Total debt		187,113			196,391
Less: current maturities of long-term debt		10,000			10,000
Long-term debt, net	$	177,113		$	186,391

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Note 10 - Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Carrying		Fair Value Measurements
	Value		Assets (Liabilities)
			Level 1		Level 2		Level 3
	(in thousands)
Assets (liabilities) as of June 30, 2024:
Trading securities held in a “rabbi trust” (1)	$	32,805	$	32,805	$	-	$	-
	$	32,805	$	32,805	$	-	$	-
Assets (liabilities) as of July 2, 2023:
Trading securities held in a “rabbi trust” (1)	$	22,617	$	22,617	$	-	$	-
	$	22,617	$	22,617	$	-	$	-

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Note 11 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Current provision (benefit):
Federal	$	11,774		$	976		$	(1,676	)
State		161			1,572			1,589
Current income tax expense (benefit)		11,935			2,548			(87	)
Deferred provision (benefit):
Federal		(14,246	)		(3,145	)		2,679
State		2,514			(1,463	)		(1,100	)
Deferred income tax expense (benefit)		(11,732	)		(4,608	)		1,579
Income tax expense (benefit)	$	203		$	(2,060	)	$	1,492

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022
Tax at U.S. statutory rates		21.0	%		21.0	%		21.0	%
State income taxes, net of federal tax benefit		(8.1	)		(0.2	)		4.2
Capital loss expiration		-			-			15.5
Non-deductible impairment charge		-			(16.8	)		-
Valuation allowance change		(28.5	)		(0.2	)		(19.8	)
Non-deductible compensation		(0.6	)		(2.1	)		5.3
Excess tax benefit/shortfalls from stock-based compensation		(11.9	)		(1.7	)		(16.1	)
Tax credits		16.9			2.7			(3.9	)
Enhanced deductions		11.8			2.6			(2.1	)
Other, net		(4.0	)		(0.9	)		0.7
Effective tax rate		(3.4	)%		4.4	%		4.8	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	June 30, 2024			July 2, 2023
	(in thousands)
Deferred income tax assets:
Loss and carryforwards	$	8,096		$	13,598
Accrued expenses and reserves		3,146			3,531
Inventory		5,417			4,422
Stock-based compensation		1,767			1,549
Deferred compensation		6,815			3,602
Operating lease liability		30,763			33,186
Gross deferred income tax assets		56,004			59,888
Less: Valuation allowance		(4,868	)		(3,182	)
Deferred tax assets, net		51,136			56,706
Deferred income tax liabilities:
Other intangibles		(10,693	)		(14,916	)
Tax in excess of book depreciation		(31,206	)		(41,826	)
Operating lease right-of-use asset		(28,639	)		(31,098	)
Deferred tax liabilities		(70,538	)		(87,840	)
Net deferred income tax liabilities	$	(19,402	)	$	(31,134	)

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Years ended
	June 30, 2024			July 2, 2023		July 3, 2022
	(in thousands)
Beginning balance	$	1,724		$	1,374	$	1,134
Increases on tax positions for prior years		1,100			30		21
Increases on tax positions for current year		387			320		267
Settlements		-			-		(19	)
Statute of limitation expirations		(431	)		-		(29	)
Ending balance	$	2,780		$	1,724	$	1,374

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Note 13 - Stock Based Compensation (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Share-Based Payment Arrangement, Cost by Plan [Table Text Block]

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Stock options	$	4,422	$	2,536	$	(41	)
Restricted stock awards		6,266		5,798		7,988
Total		10,688		8,334		7,947
Deferred income tax benefit		2,571		2,042		1,943
Stock-based compensation expense, net	$	8,117	$	6,292	$	6,004

Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Years Ended
	June 30, 2024		July 2, 2023		July 3, 2022
	(in thousands)
Marketing and sales	$	4,916	$	3,818	$	3,414
Technology and development		855		698		319
General and administrative		4,917		3,818		4,214
Total	$	10,688	$	8,334	$	7,947

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Years ended
	June 30, 2024			July 2, 2023			July 3, 2022 (1)
Weighted average fair value of options granted	$	6.09		$	5.13			n/a
Expected volatility		56	%		52	%		n/a
Expected life (in years)		7.0			7.5			n/a
Risk-free interest rate	3.9		%		4.3	%		n/a
Expected dividend yield	0.0		%		0.0	%		n/a

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Options			Price		Term		Value
						(in years)		(in thousands)
Outstanding beginning of period		2,285,608		$	8.59
Granted		1,000,000		$	10.13
Exercised		(38,240	)	$	8.59
Forfeited/Expired		(61,831	)	$	8.59
Outstanding end of period		3,185,537		$	9.07		8.34	$	2,033
Exercisable at June 30, 2024		707,806		$	8.59		7.80	$	658

Share-Based Payment Arrangement, Option, Exercise Price Range [Table Text Block]

		Options Outstanding					Options Exercisable
				Weighted‑
				Average	Weighted‑				Weighted‑
				Remaining	Average				Average
		Options		Contractual Life	Exercise		Options		Exercise
Exercise Price		Outstanding		(years)	Price		Exercisable		Price
$	8.59		2,185,537	7.8	$	8.59		707,806	$	8.59
$	10.13		1,000,000	9.5	$	10.13		-	$	-
			3,185,537	8.3	$	9.07		707,806	$	8.59

Schedule of Nonvested Share Activity [Table Text Block]

				Weighted
				Average
				Grant Date
	Shares			Fair Value
Non-vested – beginning of period		1,231,634		$	15.01
Granted		1,396,457		$	10.02
Vested		(480,708	)	$	15.22
Forfeited		(442,934	)	$	10.26
Non-vested - end of period		1,704,449		$	12.09

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Note 15 - Business Segments (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Years ended
Net revenues	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Net revenues:
Consumer Floral & Gifts	$	849,791		$	920,510		$	1,059,570
BloomNet		107,802			133,183			145,702
Gourmet Foods & Gift Baskets		874,262			965,191			1,004,272
Corporate		796			375			201
Intercompany eliminations		(1,230	)		(1,406	)		(1,860	)
Total net revenues	$	1,831,421		$	2,017,853		$	2,207,885

	Years ended
Operating Income (Loss)	June 30, 2024			July 2, 2023			July 3, 2022
	(in thousands)
Segment Contribution Margin:
Consumer Floral & Gifts	$	67,278		$	95,535		$	104,319
BloomNet		33,766			37,197			42,515
Gourmet Foods & Gift Baskets		84,508			12,895			62,021
Segment Contribution Margin Subtotal		185,552			145,627			208,855
Corporate (a)		(133,872	)		(126,965	)		(117,676	)
Depreciation and amortization		(53,752	)		(53,673	)		(49,078	)
Operating income (loss)	$	(2,072	)	$	(35,011	)	$	42,101

Disaggregation of Revenue [Table Text Block]

	Years Ended
	Consumer Floral & Gifts						BloomNet						Gourmet Foods & Gift Baskets						Corporate and Eliminations									Consolidated
	June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,		July 2,		July 3,		June 30,			July 2,			July 3,			June 30,			July 2,			July 3,
	2024		2023		2022		2024		2023		2022		2024		2023		2022		2024			2023			2022			2024			2023			2022
	(in thousands)
Net revenues
E-commerce	$	840,569	$	911,302	$	1,049,821	$	-	$	-	$	-	$	773,630	$	833,320	$	884,827	$	-		$	-		$	-		$	1,614,199		$	1,744,622		$	1,934,648
Other		9,222		9,208		9,749		107,802		133,183		145,702		100,632		131,871		119,445		(434	)		(1,031	)		(1,659	)		217,222			273,231			273,237
Total net revenues	$	849,791	$	920,510	$	1,059,570	$	107,802	$	133,183	$	145,702	$	874,262	$	965,191	$	1,004,272	$	(434	)	$	(1,031	)	$	(1,659	)	$	1,831,421		$	2,017,853		$	2,207,885
Other revenues detail
Retail and other		9,222		9,208		9,749		-		-		-		9,534		9,751		10,134		-			-			-			18,756			18,959			19,883
Wholesale		-		-		-		42,362		50,075		53,957		91,098		122,120		109,311		-			-			-			133,460			172,195			163,268
BloomNet services		-		-		-		65,440		83,108		91,745		-		-		-		-			-			-			65,440			83,108			91,745
Corporate		-		-		-		-		-		-		-		-		-		796			375			201			796			375			201
Eliminations		-		-		-		-		-		-		-		-		-		(1,230	)		(1,406	)		(1,860	)		(1,230	)		(1,406	)		(1,860	)
Total other revenues	$	9,222	$	9,208	$	9,749	$	107,802	$	133,183	$	145,702	$	100,632	$	131,871	$	119,445	$	(434	)	$	(1,031	)	$	(1,659	)	$	217,222		$	273,231		$	273,237

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Note 16 - Leases (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Lease, Cost [Table Text Block]

	Years Ended
	June 30, 2024			July 2, 2023
	(in thousands)
Lease costs:
Operating lease costs	$	22,775		$	22,208
Variable lease costs		26,326			24,582
Short-term lease cost		4,144			5,307
Sublease income		(999	)		(988	)
Total lease costs	$	52,246		$	51,109

	Years Ended
	June 30, 2024		July 2, 2023
	(in thousands)
Cash paid for amounts included in measurement of operating lease liabilities	$	22,699	$	21,020
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,799	$	12,040

	June 30, 2024			July 2, 2023
Weighted-average remaining lease term - operating leases (in years)		7.9			8.7
Weighted-discount rate - operating leases		4.3	%		4.0	%

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

2025	$	21,344
2026		20,487
2027		17,591
2028		16,596
2029		16,017
Thereafter		52,798
Total Future Minimum Lease Payments		144,833
Less: Imputed Remaining Interest		22,456
Total Operating Lease Liabilities		122,377
Less: Current portion of long-term operating lease liabilities		16,511
Long-term operating lease liabilities	$	105,866

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Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Jun. 30, 2024

Notes Tables

Valuation Allowances and Reserves [Table Text Block]

			Additions
			Charged to			Charged to
	Balance at		Costs			Other					Balance at
	Beginning		and			Accounts-		Deductions-			End of
Description	of Period		Expenses			Describe		Describe (a)			Period
Reserves and allowances deducted from asset accounts:
Reserve for estimated credit losses-accounts/notes receivable
Year Ended June 30, 2024	$	5,836,000	$	251,000		$	-	$	(3,330,000	)	$	2,757,000
Year Ended July 2, 2023	$	2,396,000	$	3,991,000		$	-	$	(551,000	)	$	5,836,000
Year Ended July 3, 2022	$	4,032,000	$	(411,000	)	$	-	$	(1,225,000	)	$	2,396,000
Valuation allowance for deferred tax assets
Year Ended June 30, 2024	$	3,182,000	$	1,882,000		$	-	$	(196,000	)	$	4,868,000
Year Ended July 2, 2023	$	3,096,000	$	86,000		$	-	$	-		$	3,182,000
Year Ended July 3, 2022	$	9,258,000	$	58,000		$	-	$	(6,220,000	)	$	3,096,000
Valuation allowance for inventory
Year Ended June 30, 2024	$	9,910,000	$	8,980,000		$	-	$	(10,900,000	)	$	7,990,000
Year Ended July 2, 2023	$	11,370,000	$	3,010,000		$	-	$	(4,470,000	)	$	9,910,000
Year Ended July 3, 2022	$	8,680,000	$	4,670,000		$	-	$	(1,980,000	)	$	11,370,000

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Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Interest Paid, Including Capitalized Interest, Operating and Investing Activities	$ 16.3	$ 12.8	$ 4.6
Income Taxes Paid, Net	$ 8.0	$ (8.8)	$ 1.4

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Note 2 - Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Prepaid Catalog Expenses Current	$ 1.5	$ 2.4
Equity Securities without Readily Determinable Fair Value, Amount	2.4	2.6
Accounts Receivable, Allowance for Credit Loss, Current	2.8	5.8
Contract with Customer, Liability, Current	25.0	30.8	$ 33.7
Contract with Customer, Liability, Revenue Recognized		30.2	33.1
Advertising Expense	$ 283.6	$ 291.9	$ 347.7
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	3 years
Minimum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life (Year)	16 years
Maximum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years

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Note 2 - Significant Accounting Policies - Property, Plant and Equipment (Details)	Jun. 30, 2024
Minimum [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Minimum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Minimum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment, Useful Life (Year)	3 years
Minimum [Member] | Orchards in Production and Land Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	15 years
Maximum [Member] | Building and Building Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	40 years
Maximum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	10 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, Plant and Equipment, Useful Life (Year)	20 years
Maximum [Member] | Software and Software Development Costs [Member]
Property, Plant and Equipment, Useful Life (Year)	7 years
Maximum [Member] | Orchards in Production and Land Improvements [Member]
Property, Plant and Equipment, Useful Life (Year)	45 years

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Note 3 - Net Income (Loss) Per Common Share (Details Textual)	12 Months Ended
	Jul. 03, 2022 shares
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	212,178
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	7,762

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Note 3 - Net Income (Loss) Per Common Share - Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Net income (loss)	$ (6,105)	$ (44,702)	$ 29,610
Basic (in shares)	64,586	64,688	64,977
Effect of dilutive securities (in shares)	0	0	640
Adjusted weighted-average shares and assumed conversions (in shares)	64,586	64,688	65,617
Basic net income (loss) per common share (in dollars per share)	$ (0.09)	$ (0.69)	$ 0.46
Diluted net income (loss) per common share (in dollars per share)	$ (0.09)	$ (0.69)	$ 0.45
Share-Based Payment Arrangement, Option [Member]
Effect of dilutive securities (in shares)	0	0	45
Restricted Stock [Member]
Effect of dilutive securities (in shares)	0	0	595

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Note 4 - Acquisitions (Details Textual) - USD ($) $ in Thousands					12 Months Ended
	Apr. 03, 2024	Jan. 10, 2023	Dec. 31, 2021	Oct. 27, 2021	Jun. 30, 2024	Jul. 02, 2023	Nov. 30, 2022	Jul. 03, 2022	Sep. 30, 2021	Dec. 31, 2020	Dec. 31, 2023	Jan. 01, 2023
Goodwill					$ 156,537	$ 153,376		$ 213,287
Revenue from Contract with Customer, Excluding Assessed Tax					$ 1,831,421	$ 2,017,853		$ 2,207,885
Things Remembered Brand [Member]
Revenue from Contract with Customer, Excluding Assessed Tax							$ 30,400
Vital Choice [Member]
Revenue from Contract with Customer, Excluding Assessed Tax										$ 27,800
Card Isle [Member]
Business Combination, Consideration Transferred	$ 3,600
Goodwill	3,000
Card Isle [Member] | Artist Contracts [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 600
Finite-Lived Intangible Asset, Useful Life (Year)	5 years
Things Remembered Brand [Member]
Business Combination, Consideration Transferred		$ 5,000
Goodwill											$ 1,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory											1,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Equipment											400
Things Remembered Brand [Member] | Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets											800
Things Remembered Brand [Member] | Customer Lists [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles											$ 800
Finite-Lived Intangible Asset, Useful Life (Year)											3 years
Alice's Table, Inc. [Member]
Business Combination, Consideration Transferred			$ 1,300
Goodwill												$ 800
Revenue from Contract with Customer, Excluding Assessed Tax									$ 3,800
Payments to Acquire Businesses, Gross			800
Business Combination, Consideration Transferred, Other			300
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value			$ 300
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage			100.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss			$ 700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue												200
Alice's Table, Inc. [Member] | Trademarks [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets												500
Alice's Table, Inc. [Member] | Customer Lists [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles												$ 200
Finite-Lived Intangible Asset, Useful Life (Year)												4 years
Vital Choice [Member]
Business Combination, Consideration Transferred				$ 20,000
Goodwill				4,383								$ 5,017
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory				8,653								8,653
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill				$ 9,800								$ 9,200
Vital Choice [Member] | Customer Lists [Member]
Finite-Lived Intangible Asset, Useful Life (Year)												5 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill												$ 4,300
Vital Choice [Member] | Trade Names [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill												$ 4,900

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Note 4 - Acquisitions - Preliminary Allocation of the Purchase Price to the Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	12 Months Ended	14 Months Ended
	Jul. 02, 2023	Jan. 01, 2023	Jun. 30, 2024	Jul. 03, 2022	Oct. 27, 2021
Goodwill	$ 153,376		$ 156,537	$ 213,287
Vital Choice [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		$ 8,653			$ 8,653
Other current assets		455			929
Other current assets, adjustment		(474)
Property, plant and equipment		0			205
Property, plant and equipment, adjustment		(205)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		9,200			9,800
Intangible assets, adjustment		(600)
Goodwill		5,017			4,383
Goodwill, adjustment	$ 600	634
Total assets acquired		23,325			23,970
Total assets acquired, adjustment		(645)
Current liabilities		3,365			3,621
Current liabilities, adjustment		(256)
Net assets acquired		19,960			$ 20,349
Net assets acquired, adjustment		$ (389)

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Note 5 - Inventory - Summary of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
Finished goods	$ 94,590	$ 92,582
Work-in-process	25,849	33,818
Raw materials	56,152	64,934
Total inventory	$ 176,591	$ 191,334

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Note 6 - Goodwill and Intangible Assets (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 02, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)
Income Statement [Abstract]
Goodwill and Intangible Asset Impairment			$ 19,762	$ 64,586	$ 0
Amortization of Intangible Assets			4,400	$ 4,200	3,900
Finite-Lived Intangible Asset, Expected Amortization, Year One			2,100
Finite-Lived Intangible Asset, Expected Amortization, Year Two			1,400
Finite-Lived Intangible Asset, Expected Amortization, Year Three			600
Finite-Lived Intangible Asset, Expected Amortization, Year Four			300
Finite-Lived Intangible Asset, Expected Amortization, Year Five			200
Finite-Lived Intangible Asset, Expected Amortization, after Year Five			100
Number of Reporting Units				3
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration]	Goodwill and Intangible Asset Impairment
Goodwill and Intangible Asset Impairment			$ 19,762	$ 64,586	$ 0
Goodwill, Impairment Loss				$ 62,287
Personalization Mall [Member]
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)		$ 19,800
Gourmet Foods and Gift Baskets [Member]
Income Statement [Abstract]
Goodwill and Intangible Asset Impairment	$ 64,600
Reporting Unit, Discount Rate	13.00%
Goodwill and Intangible Asset Impairment	$ 64,600
Goodwill, Impairment Loss	62,300
Gourmet Foods and Gift Baskets [Member] | Trademarks [Member]
Impairment of Intangible Assets, Indefinite-Lived (Excluding Goodwill)	$ 2,300

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Note 6 - Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Thousands	12 Months Ended		14 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jan. 01, 2023
Balance	$ 153,376	$ 213,287
Goodwill impairment		(62,287)
Balance	156,537	153,376
Vital Choice [Member]
Balance			$ 4,383
Measurement period adjustment		600	634
Balance			5,017
Alice's Table, Inc. [Member]
Balance
Measurement period adjustment		112
Balance			$ 800
Things Remembered Brand [Member]
Acquisition		1,664
Things Remembered [Member]
Measurement period adjustment	201
Card Isle [Member]
Acquisition	2,960
Consumer Floral [Member]
Balance	153,376	151,600
Goodwill impairment		0
Balance	153,577	153,376
Consumer Floral [Member] | Vital Choice [Member]
Measurement period adjustment		0
Consumer Floral [Member] | Alice's Table, Inc. [Member]
Measurement period adjustment		112
Consumer Floral [Member] | Things Remembered Brand [Member]
Acquisition		1,664
Consumer Floral [Member] | Things Remembered [Member]
Measurement period adjustment	201
Consumer Floral [Member] | Card Isle [Member]
Acquisition	0
BloomNet Wire Service [Member]
Balance	0	0
Goodwill impairment		0
Balance	2,960	0
BloomNet Wire Service [Member] | Vital Choice [Member]
Measurement period adjustment		0
BloomNet Wire Service [Member] | Alice's Table, Inc. [Member]
Measurement period adjustment		0
BloomNet Wire Service [Member] | Things Remembered Brand [Member]
Acquisition		0
BloomNet Wire Service [Member] | Things Remembered [Member]
Measurement period adjustment	0
BloomNet Wire Service [Member] | Card Isle [Member]
Acquisition	2,960
Gourmet Foods and Gift Baskets [Member]
Balance	0	61,687
Goodwill impairment		(62,287)
Balance	0	0
Gourmet Foods and Gift Baskets [Member] | Vital Choice [Member]
Measurement period adjustment		600
Gourmet Foods and Gift Baskets [Member] | Alice's Table, Inc. [Member]
Measurement period adjustment		0
Gourmet Foods and Gift Baskets [Member] | Things Remembered Brand [Member]
Acquisition		$ 0
Gourmet Foods and Gift Baskets [Member] | Things Remembered [Member]
Measurement period adjustment	0
Gourmet Foods and Gift Baskets [Member] | Card Isle [Member]
Acquisition	$ 0

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Note 6 - Goodwill and Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Jul. 02, 2023
Intangible assets with determinable lives, gross		$ 40,013	$ 39,437
Accumulated amortization		35,270	30,784
Intangible assets with determinable lives, net		4,743	8,653
Trademarks with indefinite lives, gross		111,473	131,235
Total identifiable intangible assets, gross		151,486	170,672
Total identifiable intangible assets, net		$ 116,216	139,888
Minimum [Member]
Finite-lived intangible asset, useful life (Year)		3 years
Maximum [Member]
Finite-lived intangible asset, useful life (Year)		16 years
Licensing Agreements [Member]
Intangible assets with determinable lives, gross		$ 7,420	7,420
Accumulated amortization		6,674	6,569
Intangible assets with determinable lives, net		$ 746	851
Licensing Agreements [Member] | Minimum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	14 years
Licensing Agreements [Member] | Maximum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	16 years
Customer Lists [Member]
Intangible assets with determinable lives, gross		$ 29,647	29,071
Accumulated amortization		25,932	21,611
Intangible assets with determinable lives, net		$ 3,715	7,460
Customer Lists [Member] | Minimum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	3 years
Customer Lists [Member] | Maximum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	10 years
Other Intangible Assets [Member]
Intangible assets with determinable lives, gross		$ 2,946	2,946
Accumulated amortization		2,664	2,604
Intangible assets with determinable lives, net		$ 282	$ 342
Other Intangible Assets [Member] | Minimum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	5 years
Other Intangible Assets [Member] | Maximum [Member]
Finite-lived intangible asset, useful life (Year)	[1]	14 years

[1] The amortization of intangible assets for the years ended June 30, 2024, July 2, 2023 and July 3, 2022 was $4.4 million, $4.2 million and $3.9 million, respectively. Future estimated amortization expense is as follows: 2025 - $2.1 million, 2026 - $1.4 million, 2027 -$0.6 million, 2028 -$0.3 million, 2029 -$0.2 million, and thereafter -$0.1 million.

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Note 7 - Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Depreciation	$ 49.3	$ 49.5	$ 45.2

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Note 7 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
Property, plant, and equipment, gross	$ 537,289	$ 526,986
Accumulated depreciation and amortization	(313,500)	(292,417)
Property, plant and equipment, net	223,789	234,569
Land [Member]
Property, plant, and equipment, gross	33,827	33,866
Orchards in Production and Land Improvements [Member]
Property, plant, and equipment, gross	20,604	20,401
Building and Building Improvements [Member]
Property, plant, and equipment, gross	69,089	67,647
Leasehold Improvements [Member]
Property, plant, and equipment, gross	31,289	29,524
Equipment [Member]
Property, plant, and equipment, gross	131,664	125,297
Furniture and Fixtures [Member]
Property, plant, and equipment, gross	9,325	9,102
Computer and Telecommunication Equipment [Member]
Property, plant, and equipment, gross	42,159	41,859
Software and Software Development Costs [Member]
Property, plant, and equipment, gross	176,160	181,085
Capital Projects in Progress [Member]
Property, plant, and equipment, gross	$ 23,172	$ 18,205

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Note 8 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
Payroll and employee benefits	$ 29,954	$ 33,927
Deferred revenue	25,009	30,811
Accrued marketing expenses	10,709	13,679
Accrued florist payout	9,526	13,437
Accrued purchases	15,338	18,351
Other	30,767	31,709
Accrued expenses	$ 121,303	$ 141,914

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Note 9 - Long-term Debt (Details Textual) $ in Millions					32 Months Ended
		Jun. 27, 2023 USD ($)	Sep. 28, 2021	May 31, 2019 USD ($)	May 31, 2024	Jun. 30, 2024 USD ($)	Jul. 02, 2023 USD ($)	Jun. 26, 2023 USD ($)	Aug. 20, 2020 USD ($)	Aug. 19, 2020 USD ($)	May 30, 2019 USD ($)
The 2019 Credit Agreement [Member] | Revolving Credit Facility [Member]
Proceeds from Lines of Credit, Total				$ 200.0
Line of Credit Facility, Maximum Borrowing Capacity				100.0
The 2020 Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 225.0						$ 250.0	$ 250.0	$ 200.0
Debt Instrument, Working Capital Sublimit									200.0	175.0
Debt Instrument, Seasonally-reduced Revolver Commitments									$ 125.0	$ 100.0
Debt Instrument, Number of Periodic Payments									15
The 2020 Credit Agreement [Member] | Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease)		25.00%
Term Loan [Member]
Long-term Debt, Total	[1]					$ 190.0	$ 200.0
Term Loan [Member] | The 2019 Credit Agreement [Member]
Long-term Debt, Total				$ 100.0							$ 97.0
Debt Instrument, Number of Installment Payments				19
Debt Instrument, Principal Payment Percentage In First Eight Payments				5.00%
Debt Instrument, Principal Payment Percentage In Remaining Eleven Payments				10.00%
Debt Instrument, Principal Payment Due Upon Maturity				$ 62.5
Term Loan [Member] | The 2019 Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) 1 [Member]
Debt Instrument, Basis Spread on Variable Rate, Increase (Decrease)				(0.25%)
Line of Credit and Term Loan [Member] | London Interbank Offered Rate (LIBOR) 1 [Member]
Debt Instrument, Base Rate, Basis Spread on Variable Rate				1.00%
Line of Credit and Term Loan [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Base Rate, Basis Spread on Variable Rate		0.50%		0.50%
Line of Credit and Term Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument, Base Rate, Basis Spread on Variable Rate		0.10%
The New Term Loan [Member] | The 2020 Credit Agreement [Member]
Debt Instrument, Principal Payment Percentage In Remaining Eleven Payments					10.00%
Debt Instrument, Face Amount		$ 200.0						$ 150.0	$ 100.0
Debt Instrument Principal Payment Percentage in First Four Payments			5.00%
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid									$ 67.5
Long-Term Debt, Maturity, Year One						10.0
Long-Term Debt, Maturity, Year Two						20.0
Long-Term Debt, Maturity, Year Three						20.0
Long-Term Debt, Maturity, Year Four						$ 140.0

[1] On May 31, 2019, the Company and certain of its U.S. subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2019 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company’s existing amended and restated credit agreement dated as of December 23, 2016 to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately 29 months to May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan was payable in 19 quarterly installments of principal and interest beginning on September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, was able to be used for working capital and general corporate purposes, subject to certain restrictions. For each borrowing under the Existing Credit Agreement (as defined below), the Company was able to elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) a LIBOR rate plus 1%, or (2) an adjusted LIBOR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. On August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amended the 2019 Credit Agreement to, among other modifications: (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from January 1 through August 1 for each fiscal year of the Company. The 2020 Term Loan was payable in 15 quarterly installments of principal and interest beginning on September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity on May 31, 2024. On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan. F- 17 Table of Contents On August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amended the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to modify certain financial covenants. On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”) to, among other modifications: (i) increase the amount of the outstanding term loan from approximately $150 million to $200 million, (ii) decrease the amount of the commitments in respect of the revolving credit facility from $250 million to $225 million, (iii) extend the maturity date of the outstanding term loan and the revolving credit facilities by approximately 48 months to June 27, 2028, and (iv) increase the applicable interest rate margins for SOFR and base rate loans by 25 basis points. For each borrowing under the Third Amended Credit Agreement, the Company may elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.10% for all interest periods. The Third Amended Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of June 30, 2024. The Third Amended Credit Agreement is secured by substantially all of the assets of the Company. On August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amends the 2019 Credit Agreement to, among other modifications, (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from January 1 through August 1 for each fiscal year of the Company. The 2020 Term Loan will mature on May 31, 2024. Proceeds of the borrowing under the 2020 Term Loan may be used for working capital and general corporate purposes of the Company and its subsidiaries, subject to certain restrictions. The 2020 Term Loan is payable in 15 quarterly installments of principal and interest beginning on September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity. On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan. Subsequent to year-end, on August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amends the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to, among other modifications, (A) alter the financial maintenance covenants set forth therein by (1) increasing the required maximum consolidated leverage ratio, for the reference period ending October 2, 2022, from 3.25 to 1.00 to 4.25 to 1.00 and (2) decreasing the required minimum consolidated fixed charge coverage ratio, for the reference periods ending October 2, 2022, January 1, 2023, and April 2, 2023, from 1.50 to 1.00 to 1.00 to 1.00 and (B) increase the amount of certain capital expenditures that may be disregarded for purposes of calculating the consolidated fixed charge coverage ratio from $25.0 million to $35.0 million. The Existing Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of July 3, 2022. The Existing Credit Agreement is secured by substantially all of the assets of the Company.

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Note 9 - Long-term Debt - Summary of Current and Long-term Debt (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Jul. 02, 2023
Deferred financing costs		$ (2,887)	$ (3,609)
Debt instrument, carrying amount		187,113	196,391
Less: current maturities of long-term debt		10,000	10,000
Long-term debt, net		177,113	186,391
Line of Credit [Member]
Revolver	[1]	0	0
Term Loan [Member]
Term Loan	[1]	$ 190,000	$ 200,000

[1] On May 31, 2019, the Company and certain of its U.S. subsidiaries entered into a Second Amended and Restated Credit Agreement (the “2019 Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders. The 2019 Credit Agreement amended and restated the Company’s existing amended and restated credit agreement dated as of December 23, 2016 to, among other modifications: (i) increase the amount of the outstanding term loan (“Term Loan”) from approximately $97 million to $100 million, (ii) extend the maturity date of the outstanding Term Loan and the revolving credit facility (“Revolver”) by approximately 29 months to May 31, 2024, and (iii) decrease the applicable interest rate margins for LIBOR and base rate loans by 25 basis points. The Term Loan was payable in 19 quarterly installments of principal and interest beginning on September 29, 2019, with escalating principal payments, at the rate of 5.0% per annum for the first eight payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $62.5 million due upon maturity. The Revolver, in the aggregate amount of $200 million, subject to seasonal reduction to an aggregate amount of $100 million for the period from January 1 through August 1, was able to be used for working capital and general corporate purposes, subject to certain restrictions. For each borrowing under the Existing Credit Agreement (as defined below), the Company was able to elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) a LIBOR rate plus 1%, or (2) an adjusted LIBOR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. On August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amended the 2019 Credit Agreement to, among other modifications: (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from January 1 through August 1 for each fiscal year of the Company. The 2020 Term Loan was payable in 15 quarterly installments of principal and interest beginning on September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity on May 31, 2024. On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan. F- 17 Table of Contents On August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amended the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to modify certain financial covenants. On June 27, 2023, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent entered into a Third Amended and Restated Credit Agreement (the “Third Amended Credit Agreement”) to, among other modifications: (i) increase the amount of the outstanding term loan from approximately $150 million to $200 million, (ii) decrease the amount of the commitments in respect of the revolving credit facility from $250 million to $225 million, (iii) extend the maturity date of the outstanding term loan and the revolving credit facilities by approximately 48 months to June 27, 2028, and (iv) increase the applicable interest rate margins for SOFR and base rate loans by 25 basis points. For each borrowing under the Third Amended Credit Agreement, the Company may elect that such borrowing bear interest at an annual rate equal to either: (1) a base rate plus an applicable margin varying based on the Company’s consolidated leverage ratio, where the base rate is the highest of (a) the prime rate, (b) the New York fed bank rate plus 0.5%, and (c) an adjusted SOFR rate plus an applicable margin varying based on the Company’s consolidated leverage ratio. The adjusted SOFR rate includes a credit spread adjustment of 0.10% for all interest periods. The Third Amended Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of June 30, 2024. The Third Amended Credit Agreement is secured by substantially all of the assets of the Company. On August 20, 2020, the Company, the Subsidiary Guarantors, JPMorgan Chase Bank, N.A. as administrative agent, and a group of lenders entered into a First Amendment (the “First Amendment”) to the 2019 Credit Agreement. The First Amendment amends the 2019 Credit Agreement to, among other modifications, (i) increase the aggregate principal amount of the existing Revolver commitments from $200.0 million to $250.0 million, (ii) establish a new tranche of term A-1 loans in an aggregate principal amount of $100.0 million (the “2020 Term Loan”), (iii) increase the working capital sublimit with respect to the Revolver from $175.0 million to $200.0 million, and (iv) increase the seasonally-reduced Revolver commitments from $100.0 million to $125.0 million for the period from January 1 through August 1 for each fiscal year of the Company. The 2020 Term Loan will mature on May 31, 2024. Proceeds of the borrowing under the 2020 Term Loan may be used for working capital and general corporate purposes of the Company and its subsidiaries, subject to certain restrictions. The 2020 Term Loan is payable in 15 quarterly installments of principal and interest beginning on September 27, 2020, with escalating principal payments, at the rate of 5.0% per annum for the first four payments, and 10.0% per annum for the remaining 11 payments, with the remaining balance of $67.5 million due upon maturity. On November 8, 2021, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Second Amendment (the “Second Amendment”) to the 2019 Credit Agreement. The Second Amendment amended the 2019 Credit Agreement to, among other modifications, decrease the interest margins and LIBOR floor applicable to the 2020 Term Loan. Subsequent to year-end, on August 29, 2022, the Company, certain of its U.S. subsidiaries, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, entered into a Third Amendment (the “Third Amendment”) to the 2019 Credit Agreement. The Third Amendment amends the 2019 Credit Agreement (the 2019 Credit Agreement, as amended by the First Amendment, the Second Amendment, and the Third Amendment, the “Existing Credit Agreement”) to, among other modifications, (A) alter the financial maintenance covenants set forth therein by (1) increasing the required maximum consolidated leverage ratio, for the reference period ending October 2, 2022, from 3.25 to 1.00 to 4.25 to 1.00 and (2) decreasing the required minimum consolidated fixed charge coverage ratio, for the reference periods ending October 2, 2022, January 1, 2023, and April 2, 2023, from 1.50 to 1.00 to 1.00 to 1.00 and (B) increase the amount of certain capital expenditures that may be disregarded for purposes of calculating the consolidated fixed charge coverage ratio from $25.0 million to $35.0 million. The Existing Credit Agreement requires that while any borrowings or commitments are outstanding the Company comply with certain financial covenants and affirmative covenants as well as certain negative covenants that, subject to certain exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, make certain investments and make certain restricted payments. The Company was in compliance with these covenants as of July 3, 2022. The Existing Credit Agreement is secured by substantially all of the assets of the Company.

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Note 10 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands		Jun. 30, 2024	Jul. 02, 2023
Trading securities held in a “rabbi trust”	[1]	$ 32,805	$ 22,617
Fair Value, Net Asset (Liability)		32,805	22,617
Fair Value, Inputs, Level 1 [Member]
Trading securities held in a “rabbi trust”	[1]	32,805	22,617
Fair Value, Net Asset (Liability)		32,805	22,617
Fair Value, Inputs, Level 2 [Member]
Trading securities held in a “rabbi trust”	[1]	0	0
Fair Value, Net Asset (Liability)		0	0
Fair Value, Inputs, Level 3 [Member]
Trading securities held in a “rabbi trust”	[1]	0	0
Fair Value, Net Asset (Liability)		$ 0	$ 0

[1] The Company has established a Non-qualified Deferred Compensation Plan (the “NQDC Plan”) for certain members of senior management. Deferred compensation plan assets are invested in mutual funds held in a “rabbi trust,” which is restricted for payment to participants of the NQDC Plan. Trading securities held in the rabbi trust are measured using quoted market prices at the reporting date and are included in the “Other assets” line item, with the corresponding liability included in the “Other liabilities” line item in the consolidated balance sheets.

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Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023
Deferred Tax Assets, Valuation Allowance	$ 4,868	$ 3,182
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	3,200
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	400
State and Local Jurisdiction [Member]
Deferred Tax Assets, Valuation Allowance	$ 1,700
Open Tax Year	2020 2021 2022 2023
Foreign Tax Jurisdiction [Member]
Deferred Tax Assets, Valuation Allowance	$ 1,700
Open Tax Year	2017 2018 2019 2020 2021 2022 2023
Domestic Tax Jurisdiction [Member]
Open Tax Year	2018 2020 2021 2022 2023
Expiring in 2027 [Member]
Tax Credit Carryforward, Amount	$ 3,600
Expiring in 2025 [Member] | State and Local Jurisdiction [Member]
Operating Loss Carryforwards	2,900
Expiring in 2034 [Member] | Foreign Tax Jurisdiction [Member]
Operating Loss Carryforwards	$ 1,300

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Note 11 - Income Taxes - Income Tax Provision From Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Federal	$ 11,774	$ 976	$ (1,676)
State	161	1,572	1,589
Current income tax expense (benefit)	11,935	2,548	(87)
Federal	(14,246)	(3,145)	2,679
State	2,514	(1,463)	(1,100)
Deferred income tax expense (benefit)	(11,732)	(4,608)	1,579
Income tax expense (benefit)	$ 203	$ (2,060)	$ 1,492

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Note 11 - Income Taxes - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Tax at U.S. statutory rates	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	(8.10%)	(0.20%)	4.20%
Capital loss expiration	0.00%	0.00%	15.50%
Non-deductible impairment charge	0.00%	(16.80%)	0.00%
Valuation allowance change	(28.50%)	(0.20%)	(19.80%)
Non-deductible compensation	(0.60%)	(2.10%)	5.30%
Excess tax benefit/shortfalls from stock-based compensation	(11.90%)	(1.70%)	(16.10%)
Tax credits	16.90%	2.70%	(3.90%)
Enhanced deductions	11.80%	2.60%	(2.10%)
Other, net	(4.00%)	(0.90%)	0.70%
Effective tax rate	(3.40%)	4.40%	4.80%

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Note 11 - Income Taxes - Deferred Income Tax Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
Loss and carryforwards	$ 8,096	$ 13,598
Accrued expenses and reserves	3,146	3,531
Inventory	5,417	4,422
Stock-based compensation	1,767	1,549
Deferred compensation	6,815	3,602
Operating lease liability	30,763	33,186
Gross deferred income tax assets	56,004	59,888
Less: Valuation allowance	(4,868)	(3,182)
Deferred tax assets, net	51,136	56,706
Other intangibles	(10,693)	(14,916)
Tax in excess of book depreciation	(31,206)	(41,826)
Operating lease right-of-use asset	(28,639)	(31,098)
Deferred tax liabilities	(70,538)	(87,840)
Net deferred income tax liabilities	$ (19,402)	$ (31,134)

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Note 11 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Beginning balance	$ 1,724	$ 1,374	$ 1,134
Increases on tax positions for prior years	1,100	30	21
Increases on tax positions for current year	387	320	267
Settlements	0	0	(19)
Statute of limitation expirations	(431)	0	(29)
Ending balance	$ 2,780	$ 1,724	$ 1,374

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Note 12 - Capital Stock (Details Textual) $ in Thousands	12 Months Ended
	Jun. 30, 2024 USD ($) shares	Jul. 02, 2023 USD ($) shares	Jul. 03, 2022 USD ($) shares	Feb. 03, 2022 USD ($)	Apr. 22, 2021 USD ($)
Stock Repurchase Program, Authorized Amount	$ 21,600			$ 40,000	$ 40,000
Treasury Stock, Value, Acquired, Cost Method	10,456	$ 1,239	$ 38,171
Treasury Stock, Common [Member]
Treasury Stock, Value, Acquired, Cost Method	$ 10,394	$ 1,239	$ 38,171
Treasury Stock, Shares, Acquired (in shares) | shares	1,079,415	147,479	1,592,555
Common Class A [Member]
Number of Voting Rights Per Share	1
Stock Issued During Period, Shares, Conversion of Convertible Securities (in shares) | shares		181,393	904,000
Common Class B [Member]
Number of Voting Rights Per Share	10

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Note 13 - Stock Based Compensation (Details Textual) - USD ($) Pure in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)	1,000,000		0
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%	0.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 100	$ 0	$ 9,200
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 10,600
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 7 months 6 days
Restricted Stock [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 13,900
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 3 months 18 days

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Note 13 - Stock Based Compensation - Stock-based Compensation Expense Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Allocated share-based compensation expense	$ 10,688	$ 8,334	$ 7,947
Deferred income tax benefit	2,571	2,042	1,943
Allocated share-based compensation expense, net	8,117	6,292	6,004
Share-Based Payment Arrangement, Option [Member]
Allocated share-based compensation expense	4,422	2,536	(41)
Restricted Stock [Member]
Allocated share-based compensation expense	$ 6,266	$ 5,798	$ 7,988

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Note 13 - Stock Based Compensation - Allocation of Stock-based Compensation to Operating Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Allocated share-based compensation expense	$ 10,688	$ 8,334	$ 7,947
Selling and Marketing Expense [Member]
Allocated share-based compensation expense	4,916	3,818	3,414
Technology and Development [Member]
Allocated share-based compensation expense	855	698	319
General and Administrative Expense [Member]
Allocated share-based compensation expense	$ 4,917	$ 3,818	$ 4,214

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Note 13 - Stock Based Compensation - Assumptions (Details) - $ / shares	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023
Weighted average fair value of options granted (in dollars per share)	$ 6.09	$ 5.13
Expected volatility	56.00%	52.00%
Expected life (Year)	7 years	7 years 6 months
Risk-free interest rate	3.90%	4.30%

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Note 13 - Stock Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 03, 2022
Outstanding, options (in shares)	2,285,608
Outstanding, weighted average exercise price (in dollars per share)	$ 8.59
Granted, options (in shares)	1,000,000	0
Granted, weighted average exercise price (in dollars per share)	$ 10.13
Exercised, options (in shares)	(38,240)
Exercised, weighted average exercise price (in dollars per share)	$ 8.59
Forfeited, oprtions (in shares)	(61,831)
Forfeited, weighted average exercise price (in dollars per share)	$ 8.59
Outstanding, options (in shares)	3,185,537
Outstanding, weighted average exercise price (in dollars per share)	$ 9.07
Outstanding, weighted average remaining contractual term (Year)	8 years 4 months 2 days
Outstanding, aggregate intrinsic value	$ 2,033
Exercisable, options (in shares)	707,806
Exercisable, weighted average exercise price (in dollars per share)	$ 8.59
Exercisable, weighted average remaining contractual term (Year)	7 years 9 months 18 days
Exercisable, aggregate intrinsic value	$ 658

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Note 13 - Stock Based Compensation - Schedule of Stock Options by Exercise Price (Details)	12 Months Ended
	Jun. 30, 2024 $ / shares shares
Options, exercise price (in dollars per share) | $ / shares	$ 9.07
Options, outstanding (in shares) | shares	3,185,537
Options, outstanding weighted average contractual life (Year)	8 years 3 months 18 days
Options, exercisable (in shares) | shares	707,806
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.59
Exercise Price Of 8.59 [Member]
Options, exercise price (in dollars per share) | $ / shares	$ 8.59
Options, outstanding (in shares) | shares	2,185,537
Options, outstanding weighted average contractual life (Year)	7 years 9 months 18 days
Options, exercisable (in shares) | shares	707,806
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.59
Exercise Price Of 10.13 [Member]
Options, exercise price (in dollars per share) | $ / shares	$ 10.13
Options, outstanding (in shares) | shares	1,000,000
Options, outstanding weighted average contractual life (Year)	9 years 6 months
Options, exercisable (in shares) | shares	0
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 0

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Note 13 - Stock Based Compensation - Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member]	12 Months Ended
	Jun. 30, 2024 $ / shares shares
Non-vested – beginning of period (in shares) | shares	1,231,634
Non-vested – beginning of period (in dollars per share) | $ / shares	$ 15.01
Granted (in shares) | shares	1,396,457
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 10.02
Vested (in shares) | shares	(480,708)
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 15.22
Forfeited (in shares) | shares	(442,934)
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 10.26
Non-vested - end of period (in shares) | shares	1,704,449
Non-vested - end of period (in dollars per share) | $ / shares	$ 12.09

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Note 14 - Employee Retirement Plans (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Defined Contribution Plan Required Age Of Employees To Become Eligible To Participate (Year)	21 years
Defined Contribution Plan Number Of Months Of Service Must Be Completed To Participate (Month)	1 month
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 1,700	$ 1,900	$ 1,900
Defined Benefit Plan Participants Deferment Percentage Of Salary And Performance And Nonperformance Based Bonus	1.00%
Interest Expense [Member]
Deferred Compensation Arrangement With Individual Gain (Loss) On Investment	$ 6,900	(800)	(3,600)
Deferred Compensation, Excluding Share-Based Payments and Retirement Benefits [Member]
Deferred Compensation Arrangement with Individual, Contributions by Employer	0	0	$ 0
Deferred Compensation Arrangement with Individual, Recorded Liability	$ 32,800	$ 22,600
Deferred Compensation, Excluding Share-Based Payments and Retirement Benefits [Member] | Maximum [Member]
Defined Benefit Plan Participants Deferment Percentage Of Salary And Performance And Nonperformance Based Bonus	100.00%

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Note 15 - Business Segments (Details Textual)	12 Months Ended
	Jun. 30, 2024
Number of Reportable Segments	3

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Note 15 - Business Segments - Segment Performance (Details) - USD ($) $ in Thousands		12 Months Ended
		Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Net revenues		$ 1,831,421	$ 2,017,853	$ 2,207,885
Depreciation and amortization		(53,752)	(53,673)	(49,078)
Operating income (loss)		(2,072)	(35,011)	42,101
Operating Segments [Member]
Contribution margin		185,552	145,627	208,855
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Net revenues		796	375	201
Corporate	[1]	(133,872)	(126,965)	(117,676)
Intersegment Eliminations [Member]
Net revenues		(1,230)	(1,406)	(1,860)
Consumer Floral and Gifts [Member] | Operating Segments [Member]
Net revenues		849,791	920,510	1,059,570
Consumer Floral [Member] | Operating Segments [Member]
Contribution margin		67,278	95,535	104,319
BloomNet [Member] | Operating Segments [Member]
Net revenues		107,802	133,183	145,702
BloomNet Wire Service [Member] | Operating Segments [Member]
Contribution margin		33,766	37,197	42,515
Gourmet Foods and Gift Baskets [Member] | Operating Segments [Member]
Net revenues		874,262	965,191	1,004,272
Contribution margin		$ 84,508	$ 12,895	$ 62,021

[1] Corporate expenses consist of the Company’s enterprise shared service cost centers, and include, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive and Customer Service Center functions, as well as Stock-Based Compensation. In order to leverage the Company’s infrastructure, these functions are operated under a centralized management platform, providing support services throughout the organization. The costs of these functions, other than those of the Customer Service Center, which are allocated directly to the above categories based upon usage, are included within corporate expenses as they are not directly allocable to a specific segment.

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Note 15 - Business Segments - Disaggregation of Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023	Jul. 03, 2022
Net revenues	$ 1,831,421	$ 2,017,853	$ 2,207,885
E-commerce [Member]
Net revenues	1,614,199	1,744,622	1,934,648
Product and Service, Other [Member]
Net revenues	217,222	273,231	273,237
Product and Service, Other [Member] | Retail and Other [Member]
Net revenues	18,756	18,959	19,883
Product and Service, Other [Member] | Wholesale [Member]
Net revenues	133,460	172,195	163,268
Product and Service, Other [Member] | Bloomnet Services [Member]
Net revenues	65,440	83,108	91,745
Operating Segments [Member] | Consumer Floral and Gifts [Member]
Net revenues	849,791	920,510	1,059,570
Operating Segments [Member] | BloomNet [Member]
Net revenues	107,802	133,183	145,702
Operating Segments [Member] | Gourmet Foods and Gift Baskets [Member]
Net revenues	874,262	965,191	1,004,272
Operating Segments [Member] | E-commerce [Member] | Consumer Floral and Gifts [Member]
Net revenues	840,569	911,302	1,049,821
Operating Segments [Member] | E-commerce [Member] | BloomNet [Member]
Net revenues	0	0	0
Operating Segments [Member] | E-commerce [Member] | Gourmet Foods and Gift Baskets [Member]
Net revenues	773,630	833,320	884,827
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member]
Net revenues	9,222	9,208	9,749
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Retail and Other [Member]
Net revenues	9,222	9,208	9,749
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Wholesale [Member]
Net revenues	0	0	0
Operating Segments [Member] | Product and Service, Other [Member] | Consumer Floral and Gifts [Member] | Bloomnet Services [Member]
Net revenues	0	0	0
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member]
Net revenues	107,802	133,183	145,702
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Retail and Other [Member]
Net revenues	0	0	0
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Wholesale [Member]
Net revenues	42,362	50,075	53,957
Operating Segments [Member] | Product and Service, Other [Member] | BloomNet [Member] | Bloomnet Services [Member]
Net revenues	65,440	83,108	91,745
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member]
Net revenues	100,632	131,871	119,445
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Retail and Other [Member]
Net revenues	9,534	9,751	10,134
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Wholesale [Member]
Net revenues	91,098	122,120	109,311
Operating Segments [Member] | Product and Service, Other [Member] | Gourmet Foods and Gift Baskets [Member] | Bloomnet Services [Member]
Net revenues	0	0	0
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member]
Net revenues	(434)	(1,031)	(1,659)
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | E-commerce [Member]
Net revenues	0	0	0
Segment Reporting, Reconciling Item, Excluding Corporate Nonsegment [Member] | Product and Service, Other [Member]
Net revenues	(434)	(1,031)	(1,659)
Consolidation, Eliminations [Member] | Product and Service, Other [Member]
Net revenues	(1,230)	(1,406)	(1,860)
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Retail and Other [Member]
Net revenues	0	0	0
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Wholesale [Member]
Net revenues	0	0	0
Consolidation, Eliminations [Member] | Product and Service, Other [Member] | Bloomnet Services [Member]
Net revenues	0	0	0
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Net revenues	796	375	201
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member] | Product and Service, Other [Member]
Net revenues	$ 796	$ 375	$ 201

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Note 16 - Leases - Lease Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2024	Jul. 02, 2023
Operating lease costs	$ 22,775	$ 22,208
Variable lease costs	26,326	24,582
Short-term lease cost	4,144	5,307
Sublease income	(999)	(988)
Total lease costs	52,246	51,109
Cash paid for amounts included in measurement of operating lease liabilities	22,699	21,020
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 6,799	$ 12,040
Weighted-average remaining lease term - operating leases (in years) (Year)	7 years 10 months 24 days	8 years 8 months 12 days
Weighted-discount rate - operating leases	4.30%	4.00%

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Note 16 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jul. 02, 2023
2025	$ 21,344
2026	20,487
2027	17,591
2028	16,596
2029	16,017
Thereafter	52,798
Total Future Minimum Lease Payments	144,833
Less: Imputed Remaining Interest	22,456
Total Operating Lease Liabilities	122,377
Less: Current portion of long-term operating lease liabilities	16,511	$ 15,759
Long-term operating lease liabilities	$ 105,866	$ 117,330

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Note 17 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions		1 Months Ended	12 Months Ended
	Jul. 01, 2024	Apr. 30, 2022	Jun. 30, 2024	Jul. 02, 2023
Long-Term Purchase Commitment, Amount			$ 21.8
Subsequent Event [Member]
Litigation Settlement, Amount Awarded to Other Party	$ 1.2
Harriso Lawsuit [Member]
Litigation Settlement, Amount Awarded to Other Party		$ 2.9
Letter of Credit [Member]
Debt Instrument, Unused Borrowing Capacity, Amount			$ 1.5	$ 2.7

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Note 18 - Subsequent Events (Details Textual) $ in Millions	Jul. 01, 2024 USD ($)
Subsequent Event [Member] | Sharffen Berger [Member]
Payments to Acquire Businesses, Gross	$ 3.3

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Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Jun. 30, 2024		Jul. 02, 2023		Jul. 03, 2022
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Balance at Beginning of Period	$ 5,836,000		$ 2,396,000		$ 4,032,000
Charged to Costs and Expenses	251,000		3,991,000		(411,000)
Deductions- Describe	(3,330,000)	[1]	(551,000)	[1]	(1,225,000)
Balance at End of Period	2,757,000		5,836,000		2,396,000
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]
Balance at Beginning of Period	3,182,000		3,096,000		9,258,000
Charged to Costs and Expenses	1,882,000		86,000		58,000
Deductions- Describe	(196,000)		0		(6,220,000)
Balance at End of Period	4,868,000		3,182,000		3,096,000
SEC Schedule, 12-09, Reserve, Inventory [Member]
Balance at Beginning of Period	9,910,000		11,370,000		8,680,000
Charged to Costs and Expenses	8,980,000		3,010,000		4,670,000
Deductions- Describe	(10,900,000)		(4,470,000)		(1,980,000)
Balance at End of Period	$ 7,990,000		$ 9,910,000		$ 11,370,000

[1] Reduction in reserve due to amounts written off.