Dive Brief:
- 1-800-Flowers.com plans to modernize its customer experience and reimagine its loyalty program to help the gift retailer return to revenue growth, CEO Adolfo Villagomez said on a Q4 2025 earnings call last week.
- The company’s strategy includes streamlining its brands to present a more unified experience, personalizing customer journeys, responding to customer needs in real time, and adding more value to its Celebrations Passport loyalty program.
- “Looking ahead, I see significant opportunities to improve our performance by becoming a leaner, more agile, customer-centric and data-driven organization,” Villagomez said during the call.
Dive Insight:
1-800-Flowers is pursuing improved customer acquisition and engagement, and experience improvements will play a key role in its efforts.
Consolidated revenue across the retailer’s brands fell 6.7% year over year to $336.6 million in the fourth quarter of 2025, which ended June 29, according to a company earnings report. Consolidated revenue for fiscal 2025 as a whole dropped 8% year over year to $1.7 billion.
1-800-Flowers fell behind evolving customer expectations and technology changes in recent years amid intensifying competition, according to Villagomez, who took on the CEO role in May.
“We didn't fully keep pace with this environment, and as a result, we haven't reached our full potential,” he said.
Celebrations Passport is an important part of the business strategy, and leaders see room for it to grow. Passport members represent 9% of the customer base and 19% of revenue, according to James Langrock, SVP and CFO.
“Today, it functions primarily as a free shipping program,” Villagomez said. “By improving the value proposition, we can drive more frequent purchases and increase awareness of our broader product categories.”
Another part of 1-800-Flowers’s strategy involves streamlining the architecture of its 10 plus brands to present a more unified and intuitive experience, according to Villagomez.
Only 13% of customers shopped across multiple brands in fiscal 2025, but they represented 29% of the company’s revenue, according to Langrock.
The gift retailer also plans to use AI more on its website and improve navigation, search and product recommendations.
