1-800-FLOWERS.COM, Inc.

Good day, and welcome to the 1-800-FLOWERS.COM, Inc., 4th Quarter Fiscal Year 2026 Earnings Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Andy Milevoj, Head of Investor Relations. Please go ahead.

Good morning, and welcome to our fiscal 2026 fourth quarter and year-end earnings call. Joining us on today's call are Adolfo Villagomez, Chief Executive Officer and James Langrock, Chief Financial Officer. Before we begin, I'd like to remind you that some of the statements we make on today's call are covered by the Safe Harbor disclaimer contained in our press release and public documents. During this call, we will make forward-looking statements with predictions, projections and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. including those contained in our press release and public filings with the Securities and Exchange Commission. The company disclaims any obligation to update any of the forward-looking statements that may be made or discussed during this call. Additionally, we will discuss certain supplemental financial measures that were not prepared in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the tables of our earnings release. And now, I'll turn the call over to Adolfo.

Thanks, Andy, and good morning, everyone. This morning, I would like to discuss some of the announcements we made earlier today, reflect on the progress we made during fiscal 2026, and share how we are entering the next phase of our transformation in fiscal 2027. As we announced this morning, will reach an agreement with our banking partners to amend our credit facility, providing us with additional financial flexibility. The amended credit agreement provides us with greater flexibility to retain a portion of potential assets sell proceeds and reinvest them in the business. It also better positions the company to pursue a successful capital raising process. Any additional capital would enable us to fund the investments required to improve customer acquisition, engagement, retention, and ultimately return the company to sustainable growth. This agreement gives us the flexibility to continue executing while we evaluate those capital raising alternatives. James will discuss this in more detail. When we began this journey a little more than a year ago, our priorities were clear. We needed to strengthen the foundation of the business, improve the customer experience, simplify how we operate, and build the capabilities necessary to return the company to sustainable, profitable growth. As I reflect on fiscal 2026, I am proud of what our team has accomplished. Together, We made meaningful changes across the organization that have strengthened our capabilities and positioned us to become a more customer-first, data-driven company. While there is still important work ahead, I believe we are exiting fiscal 2026 as a stronger company than when we entered the year. Throughout fiscal 2026, We strengthened our leadership team, simplified our organization, began to modernize our digital and marketing capabilities, improved operational efficiency, and increasingly put the customer at the center of everything we do. One of the most significant changes we have made is how we operate internally. As part of our transition to a function-based organization, We have created clearer ownership and accountability across the customer journey. Historically, our marketing organization was responsible for a broad range of activities, including customer acquisition and retention, promotional discounts and cadence that vary by marketing channel, and other elements of the customer experience. Today, those responsibilities are more clearly defined across our marketing, merchandising, and digital experience teams, with each team accountable for a specific part of the customer journey. Marketing is focused on attracting new customers and retaining and engaging our existing customers. Our merchandising team is responsible for the value proposition we put in front of those customers. including assortment, pricing, delivery fees, product availability, promotional activity, trade-off opportunities, and new product development. And our digital experience team is responsible for the experience customers have once they arrive on our websites, with a particular focus on improving the shopping experience and increasing conversions. We recently promoted one of our leaders into a new role that serves as the store manager for each of our digital platforms. This newly created team is responsible for looking at our websites through the eyes of the customer and identifying ways to make the shopping experience easier, more relevant, and more effective while improving conversion leading to sales growth. This is an important change in how we run the company. Rather than relying primarily on one team per brand to influence multiple parts of the customer journey, we now have specialized teams with clear responsibilities and accountability across our digital properties. We're also seeing how our teams can work together to better serve the customer. A good example is our floral assortment. Historically, even within the floral brand, we have separate merchandising teams for our florist fulfilled and direct ship businesses. And they largely operated independently, leading to confusing and sometimes competing value propositions within the same landing page. Today, they are working as one team to align our assortment and make more of our most popular products available through both fulfillment methods with clearly differentiated value propositions for our customers. This gives customers more choice, clarifies our value proposition, expands our coverage in markets where florist availability may be limited, and creates a more consistent experience regardless of how the product is fulfilled. It is a good example of how breaking down silos and working together around the customer can improve the overall customer experience. This is what is happening underneath our transformation. We are creating clear accountability across each step of the customer journey while bringing those teams together around a common objective, serving the customer better while improving business performance. Let me share a few other examples of the progress we are making. First, we launched our redesigned Ari and David website, which is currently in A-B testing. The new site features a mobile-first design, improved navigation, dynamic product ranking, and AI power search, all designed to make it easier for customers to discover products while improving conversion. We also simplified our digital ecosystem by transitioning some of our low-traffic standalone websites into categories within harryanddavid.com. This allows us to leverage our larger flagship platforms, introduce customers to a broader assortment, and operate more efficiently. Second, we are modernizing our marketing capabilities. With clearer responsibility for customer acquisition and retention, Our marketing team is increasingly focused on reaching the right customers, strengthening engagement, and improving the productivity of our marketing investments. We are supporting that effort with investments in our marketing technology platform and a broader, full funnel approach. Finally, we continue simplifying the business and improving efficiency. We achieved our original two-year cost savings target within the first year, giving us greater flexibility to reinvest a meaningful portion of those savings into marketing, technology, digital capabilities, and the customer experience. As I reflect on fiscal 2026, I see it as a year in which we fundamentally changed how we run the company. We strengthened our leadership team and many more. As we move into fiscal 2027, our operational focus SHIFTS TO FOUR PRIORITIES THAT WE BELIEVE WILL TRANSLATE OUR STRATEGY INTO STRONGER BUSINESS PERFORMANCE OVER TIME. FIRST, WE MUST ACCELERATE THE RECOVERY OF OUR REVENUE TRENDS. WE RECOGNIZE THAT OUR REVENUE TRENDS REMAIN CHALLENGED AND IMPROVING THOSE TRENDS IS OUR HIGHEST PRIORITY. AS CONSUMERS REMAIN SELECTIVE IN THEIR DISCRETIONARY SPENDING, IT IS INCREASINGLY IMPORTANT THAT WE GIVE THEM MORE REASONS TO ENGAGE WITH OUR BRANDS. Whether we are expanding everyday occasions at Harry & David, broadening our assortment, strengthening our loyalty strategy, or delivering more personalized customer experiences, our focus is on building a more durable revenue base over time. As these initiatives continue to mature, we believe they will help increase purchase frequency, strengthen customer relationships, and support improving revenue trends over time. Second, we will continue to modernize the customer experience. Our objective is simple. Make it easier for customers to discover products, find the right gift, and shop seamlessly across our portfolio. With clear accountability within our digital experience team, we will continue optimizing the customer journey to improve conversion and make the experience more intuitive from the moment a customer arrives on one of our sites through checkout. We will also look for opportunities to encourage customers to shop across more categories to increase average order value and create a more engaging shopping experience. Third, we will increase marketing productivity and make targeted investments to build our brands. Over the past year, we began building a modern marketing organization. With marketing increasingly focused on customer acquisition and retention, we expect to make smarter investment decisions, improve personalization, broaden our full funnel marketing investments, and more efficiently connect customers with the breadth of our portfolio. Finally, our team will execute with discipline. We will continue to simplify the business, improve operational efficiency and allocate capital toward the opportunities we believe offer the greatest long-term returns. We will also leverage the systems and processes we are modernizing to improve productivity and create a simpler, more efficient operating model. We will remain disciplined in how we invest while continuing to strengthen the capabilities that support sustainable, profitable growth. Across our four priorities, our objective is to translate investments we have made into better business outcomes. We will not measure success by any single quarter, but by sustained progress across these areas and our ability to translate that progress into improving revenue trends and Profitable Growth Over Time. When I joined the company a little more than a year ago, we knew we needed to strengthen the foundation of the business. We now have a stronger leadership team, better capabilities, deeper customer insights and a more agile organization. As we enter fiscal 2027, we will continue building those capabilities. But our focus is increasingly on putting them to work and demonstrating what we can deliver. With that, let me turn the call over to James.