I feel so dumb for not being able to figure this out.

Go to your inventory, then select an item by clicking on it. Next, click the "Send to a Buddy" link and either select your friend from the drop-down menu, or type in a user's name if they're not in your buddylist.

You can also buy gift wrapping/gift boxes from the Holiday shop (or other users) and send it to them via the gift center at Arctic Frost.

Okay, thanks very much!