1 800 FLOWERS COM INC

Note 12 –Commitments and contingencies

Litigation

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 13 –Business segments

Historically, the Company hadthree reportable segments: Consumer Floral & Gifts, BloomNet®, and Gourmet Foods & Gift Baskets. Effective June 29, 2026, the Company reassessed its segment reporting structure to reflect changes in how the Company’s Chief Executive Officer, who serves as the CODM, manages the business, assesses performance, and allocates resources in accordance with ASC 280, Segment Reporting. As a result, the Company’s operations were re-organized into thethree following reportable segments: E-Commerce, Wholesale and Other, and BloomNet®. The revised segment structure aligns with the manner in which the CODM reviews the Company’s operating results and allocates resources and more closely reflects the Company’s channel strategy. Prior-period segment information presented herein has been recast to conform to the current reportable segment presentation to provide comparability between periods.

E-Commerce – this segment consists primarily of the Company's direct-to-consumer gifting business as operating through digital platforms, including Company-owned websites, third-party marketplaces, and other direct ordering channels.

Wholesale and Other – this segment consists primarily of wholesale distribution of gifting products to commercial customers for resale, as well as Company-operated retail stores and franchise operations.

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

The accounting policies of the business segments are the same as those described in Note 2 - Significant accounting policies in the Annual Report on Form 10-K for the fiscal year ended June 28, 2026.

The Company evaluates performance for its business segments based on contribution margin, which includes only the direct controllable revenue and operating expenses of the segments. This information is used by the CODM to measure segment profitability, allocate resources, and make budgeting and forecasting decisions about the business segments. The Chief Executive Officer also uses this measure to monitor trends in year-over-year performance and to compare actual results to the Company's budget and forecasts.

Management’s measure of profitability for these segments does not include the effect of corporate overhead and unallocated expenses (see (b) below), nor does it include depreciation and amortization, interest income, interest expense, and other expense, net. Sales, cost of revenues, and certain other operating expenses including advertising expenses are also provided to the Chief Executive Officer. No asset information is provided for the business segments as this information is reviewed at the consolidated level by management and not by segment.

(a)Other segment items include credit card fees.

(b)Corporate and unallocated expenses consist primarily of costs associated with the Company’s enterprise shared-service and centralized functions, including, among other items, Information Technology, Human Resources, Accounting and Finance, Legal, Executive, and central marketing and merchandising costs, as well as stock-based compensation and changes in the fair value of the Company's NQDC Plan. To leverage the Company’s infrastructure and capabilities across the organization, these centralized functions are centrally managed and provide services and support across the Company’s business segments. Accordingly, costs associated with these centralized functions are managed on an enterprise-wide basis and are not allocated to the Company's business segments in the measure of segment contribution margin.

The following table represents a disaggregation of revenue from contracts with customers, by channel:

Note 14 –Fire at the Hebron warehouse and distribution facility

The Company maintains insurance coverage for property damage and business interruption and has submitted a claim to its insurance carriers. The Company has already received some recovery amounts from its insurers and is continuing to work with them to finalize the evaluation and settlement of the claim.

In the three months ended September 27, 2026, the Company recorded $16.3 million of fire-related costs, consisting of $7.0 million related to inventory, $8.2 million related to third-party cleaning and remediation, and $1.1 million related to other costs such as internal labor and supplies. Additionally, as of September 27, 2026, the Company received $6.8 million in advances from the insurance carriers primarily related to the cleaning and remediation costs for the facility, after a $0.8 million deductible.

As of September 27, 2026, the Company recorded an insurance receivable of $8.8 million, within the “Prepaid and other” line item in the consolidated balance sheet, for probable recoveries of losses incurred, limited to the amount of related costs and losses recognized. The Company is still assessing the total amount of losses related to the fire.

Note 15 –Subsequent Events

Subsequent to September 27, 2026, the Company entered into a definitive agreement to sell its Jacksonville, Florida facility for approximately $9.7 million, subject to due diligence and customary closing conditions. The facility was not classified as held for sale as of September 27, 2026, as it did not meet the criteria for held-for-sale classification as of such date.