1·800·Flowers.com, Inc. (FLWS) – Why Margins Can Continue To Improve


Friday, February 03, 2023

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, 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.

Beats expectations. The company reported fiscal Q2 revenue of $897.9 million and adj. EBITDA of $131.4 million. Revenue was in line with our estimate of $897.1 million and adj. EBITDA beat our estimate of $112.2 million million by 17.1%. 

Better than expected EBITDA margins. The second quarter adj. EBITDA margin was 14.6%, which beat our estimate of 12.5%. The driver of improved EBITDA margins was the strong performance from the Gourmet Food & Gift Baskets segment. The segment beat our adj. EBITDA estimate and adj. EBITDA margin estimate by 18.8% and 15%, respectively. The stronger than expected adj. EBITDA figure was driven by cost cutting initiatives and declining input costs. Management anticipates that adj. EBITDA margins will further improve in the second half of fiscal 2023.


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