Friday, January 31, 2025
For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fiscal Q2 Results. The company reported fiscal Q2 revenue and adj. EBITDA of $775.5 million and $116.3 million, both of which were lower than our estimates of $801.1 million and $124.7 million, respectively. Notably, an order management system (OMS) that was implemented in Q2 for Harry & David faced issues with complicated orders during periods of high volume. The OMS issue, which was resolved in the quarter, resulted in roughly $20 million of lost revenue and is largely to blame for the downside variance.
Strategic initiatives. Importantly, the company remains focused on reducing costs through increased automation, increasing investments in sales and marketing, and broadening its product offerings for its price-sensitive customers. Notably, management highlighted that the savings from its cost reduction efforts will largely fund its increased investment in sales and marketing in an effort to broaden its customer base.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
