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1-800 Flowers (FLWS)
NASDAQ:FLWS
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1-800 Flowers
(NASDAQ:FLWS)
53Neutral
1-800 Flowers (FLWS) vs. S&P 500 (SPY)
Market Cap
$417.86M
Dividend YieldN/A
Average Volume (3M)841.86K
Price to Earnings (P/E)―
Beta (1Y)2.17
Revenue Growth-7.84%
EPS Growth88.34%
CountryUS
Employees4,000
SectorConsumer Cyclical
Sector Strength49
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)-0.12
Shares Outstanding36,532,944
10 Day Avg. Volume829,564
30 Day Avg. Volume841,855
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)0.30
P/FCF Ratio0.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside88.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
1-800 Flowers Business Overview & Revenue Model
Company Description1-800-FLOWERS.COM, Inc. engages in the provision of gifts for all celebratory occasions. It operates in three segments: Consumer Floral, Gourmet Food and Gift Baskets and BloomNet Wire Service. The Consumer Floral segment comprises the operations of the company's flagship brand 1-800-Flowers.com, Celebrations and FineStationery.com. The Gourmet Food and Gift Baskets segment consists the operations of Fannie May Confections Brands, Cheryl's, The Popcorn Factory, Stockyards.com, DesignPac and 1-800-Baskets. The BloomNet Wire Service segment includes the operations of BloomNet, BloomNet Technologies, BloomNet Products and Napco. The company was founded by James F. McCann in 1976 and is headquartered in Carle Place, NY.
How the Company Makes Money1-800-Flowers.com generates revenue primarily through the sale of its wide array of gift products via its online and offline channels. The company's key revenue streams include direct-to-consumer sales through its e-commerce platforms and retail stores, corporate gifting services, and subscription services for recurring floral and gift deliveries. Additionally, 1-800-Flowers.com benefits from strategic partnerships and collaborations with other businesses to expand its product offerings and reach. The company leverages a robust supply chain and logistics network to ensure timely delivery of its perishable and non-perishable products, contributing significantly to its earnings.
1-800 Flowers Financial Statement Overview
Summary
1-800 Flowers faces financial challenges with declining revenues, negative profitability, and reduced cash flow. While leverage remains under control, the negative net income and cash flow highlight operational difficulties. The company needs to address these issues to improve financial health and regain growth momentum.Income Statement
The company's revenue has been declining over recent years, with a significant drop from $2.2 billion in 2022 to $1.75 billion TTM. Gross profit margin has decreased from 40.5% in 2021 to 38.6% TTM, and net income has turned negative, resulting in a net profit margin of -0.43% TTM. This indicates challenges in maintaining profitability and controlling costs.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.24 TTM, indicating manageable leverage levels. However, stockholders' equity has been declining, and the return on equity (ROE) is negative due to the loss. The equity ratio is relatively stable at 43.5%, suggesting a solid equity base compared to liabilities.55
Neutral
Cash Flow
Cash flow analysis reveals a negative free cash flow TTM, down from $56.4 million in the prior year, indicating cash constraints. Operating cash flow has decreased significantly, resulting in a challenging scenario for covering capital expenditures and financing activities. The free cash flow to net income ratio is negative, reflecting inefficiencies in cash generation relative to net losses.50
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Sep 2023 | Sep 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.76B | 1.83B | 2.02B | 2.21B | 2.12B | 1.49B | Gross Profit |
| 678.63M | 734.75M | 757.53M | 821.74M | 896.43M | 622.20M | EBIT |
| -11.23M | -2.07M | -35.01M | 42.10M | 149.09M | 80.36M | EBITDA |
| 49.39M | 58.47M | 17.86M | 85.85M | 197.49M | 112.79M | Net Income Common Stockholders |
| -7.61M | -6.11M | -44.70M | 29.61M | 118.65M | 59.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 247.22M | 159.44M | 126.81M | 31.46M | 173.57M | 240.51M | Total Assets |
| 1.14B | 1.03B | 1.05B | 1.09B | 1.08B | 774.43M | Total Debt |
| 120.53M | 309.49M | 329.48M | 299.08M | 270.88M | 162.81M | Net Debt |
| -126.69M | 150.05M | 202.67M | 267.61M | 97.31M | -77.70M | Total Liabilities |
| 642.66M | 566.31M | 579.59M | 585.48M | 567.61M | 374.66M | Stockholders Equity |
| 495.11M | 466.34M | 471.84M | 509.41M | 509.07M | 399.77M |
| Cash Flow | Free Cash Flow | ||||
| -10.30M | 56.37M | 70.70M | -61.22M | 118.07M | 104.71M | Operating Cash Flow |
| 33.55M | 95.00M | 115.35M | 5.19M | 173.29M | 139.42M | Investing Cash Flow |
| -50.52M | -42.30M | -50.83M | -89.69M | -307.92M | -56.38M | Financing Cash Flow |
| -47.82M | -20.07M | 30.82M | -57.61M | 67.69M | -15.46M |
1-800 Flowers Technical Analysis
Negative
6.35
Price Trends
7.81
Negative
7.93
Negative
8.44
Negative
Market Momentum
-0.47
Positive
31.02
Neutral
23.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLWS, the sentiment is Negative. The current price of 6.35 is below the 20-day moving average (MA) of 7.45, below the 50-day MA of 7.81, and below the 200-day MA of 8.44, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 23.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLWS.
1-800 Flowers Risk Analysis
1-800 Flowers disclosed 42 risk factors in its most recent earnings report. 1-800 Flowers reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
1-800 Flowers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $36.00B | 14.03 | 28.02% | 3.71% | -1.48% | 11.45% | |
67 Neutral | $1.95B | 18.50 | 4.91% | 2.40% | 2.56% | -91.05% | |
61 Neutral | $7.49B | 15.28 | 657.13% | 2.50% | 3.77% | -2.16% | |
60 Neutral | $5.18B | 235.96 | 7.53% | 0.15% | ― | ― | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
53 Neutral | $417.86M | ― | -1.52% | ― | -7.84% | 88.34% | |
45 Neutral | $1.63B | 139.82 | 0.62% | ― | -2.20% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
FLWS
1-800 Flowers
6.35
-4.01
-38.71%
FL
Foot Locker
16.22
-6.96
-30.03%
GIS
General Mills
62.33
-1.34
-2.10%
HRB
H&R Block
53.35
6.86
14.76%
SPB
Spectrum Brands Holdings
73.24
-9.98
-11.99%
LB
LandBridge Company LLC Class A
68.22
45.33
198.03%
1-800 Flowers Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -28.09% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Negative
The earnings call presented a challenging quarter with revenue declines and operational issues, particularly with the new Harry & David order management system. Despite these setbacks, the company showed resilience in maintaining gross margins and reducing operating expenses. However, the decline in corporate gifting and marketing inefficiencies added to the negative sentiment.Highlights
Successful Delivery During Holiday Season
Despite challenges, the company successfully delivered over seven million orders during the holiday season, demonstrating operational strength under pressure.
Gross Margin Stability
Gross margin remained flat at 43.3%, showing resilience despite a highly promotional environment and OMS-related costs impacting gross profit by approximately 20 basis points.
Reduction in Adjusted Operating Expenses
Adjusted operating expenses declined by $2.9 million to $239 million, attributed to the company's Work Smarter initiatives.
Debt Reduction
The company reduced term debt to $160 million, compared to $195 million a year ago, and made a $25 million prepayment to the term loan.
Lowlights
Revenue Decline
Second quarter revenue declined by 5.7%, impacted by lower consumer demand and issues with the Harry & David order management system, which reduced Q2 e-commerce revenue by approximately $20 million.
Challenges with Harry & David OMS
The new order management system faced challenges during peak holiday season, causing revenue loss and increased costs, impacting Q2 EBITDA by approximately $4.8 million.
Decline in Corporate Gifting
Corporate gifting revenue declined by 17.5% year-over-year, with reduced average order value and fewer orders due to cautious corporate spending.
Lower Marketing Efficiency
Increased marketing spend did not yield anticipated results due to changes in the online marketing environment, impacting marketing efficiency and leading to a decline in free and lower-cost marketing channels.
Lower Cash Position
Net cash was reported at $87 million, down from $117 million at the end of the previous year's second quarter.
Company Guidance
During the 1-800-Flowers.com Fiscal Year 2025 Second Quarter Conference Call, the company provided updated guidance in light of their recent performance. They now anticipate a mid-single-digit decline in full fiscal year revenue. Adjusted EBITDA is expected to range between $65 million and $75 million, while free cash flow is projected to be between $25 million and $35 million. The quarter's performance was affected by several factors, including a 5.7% decline in consolidated revenue, a 1.2% decrease in average order value (AOV), and an 8.3% drop in e-commerce business due to issues with the new Harry & David order management system. These challenges, along with increased marketing expenditures that did not meet expectations, impacted the company's EBITDA by approximately $4.8 million, leading to a quarterly adjusted EBITDA of $116.3 million, down from $130.1 million in the prior year. Despite these setbacks, the company remains optimistic about future performance improvements through strategic initiatives and enhanced customer engagement.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.