Friday, January 28, 2022

1-800-Flowers.com (FLWS)
Is The Glass Half Empty?

1-800-FLOWERS.COM, Inc. is the leading provider of gourmet and floral gifts for all occasions. For nearly 40 years, 1-800-FLOWERS® has been helping deliver smiles for customers with gifts for every occasion, including fresh flowers, premium, gift-quality fruits, and other gourmet items from Harry & David®, popcorn and specialty treats from The Popcorn Factory®; cookies and baked gifts from Cheryl’s®; premium chocolates and confections from Fannie May®; gift baskets and towers from 1-800-Baskets.com®; premium English muffins and other breakfast treats from Wolferman’s; carved fresh fruit arrangements from FruitBouquets.com; and top quality steaks and chops from Stock Yards®. The Company’s BloomNet® international floral wire service provides a broad range of quality products and value-added services designed to help professional florists grow their businesses profitably.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A surprise miss. Fiscal Q2 total revenues were $943 million, up a solid 7.5% from the year earlier quarter, but missed expectations. Adj. EBITDA was $133 million, down 17%, missing our estimate of $179 million. The miss was due to cancelled orders, higher than expected costs for ocean freight, inbound and outbound shipping costs and labor.


Gross margins take a hit.  Gross profit margin declined 530 basis points from 45.4% in the prior year quarter to 40.1% due to increased inbound and outbound shipping costs as well as the rising cost of labor. All three operating segments took a hit to margins on a year-over-year basis: gross margins for Gourmet Foods and Gift Baskets declined 660 basis points, Consumer Floral and Gifts declined 270 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*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.