1-800-FLOWERSNASDAQ: FLWS

1-800-Flowers.com (FLWS) shares sank in intraday trading Wednesday after D.A. Davidson downgraded the company's stock to "underperform" from "neutral" and lowered its price target.

The stock of 1-800-Flowers.com Inc. dropped early Wednesday, after D.A. Davidson downgraded it to underperform, or sell, from neutral, and said consensus estimates for its fiscal fourth quarter are looking too high.

1-800-Flowers.com (FLWS) reported a quarterly loss of $0.28 per share, slightly missing the Zacks Consensus Estimate of a loss of $0.27. This is compared to a loss of $0.27 per share in the same quarter last year.

1-800-FLOWERS expects improved Adjusted EBITDA and FCF in 2024, with reduced labor costs and better inventory management as profit catalysts. Recent acquisitions were made in cash, indicating potential undervaluation of the company's shares. The company's financial situation appears healthy, with a strong balance sheet and cash on hand for future acquisitions.

Americans will spend a record $14.2 billion on Valentine's Day cards and gifts this year. That's according to a recent survey conducted by the National Retail Federation (NRF) and Prosper Insights & Analytics.

1-800-Flowers.com (FLWS) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.28 per share a year ago.

1-800-Flowers has an important holiday season coming up and based on the messages from its management, it is likely to be at par with last year. However, the company's recent decline in its topline and bottom-line financials needs more than at par to backstop the subdued trend. In the long term, its thin margin resulting from its high cost structure will hinder its growth and create vulnerability.

1-800-FLOWERS.COM, Inc. (FLWS) Q1 2024 Earnings Call Transcript

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