Latest news with #1-800-FLOWERS
Yahoo
3 days ago
- Business
- Yahoo
FLWS Q1 Earnings Call: Strategic Overhaul Amid Revenue and Margin Pressures
E-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 12.6% year on year to $331.5 million. Its non-GAAP loss of $0.71 per share was significantly below analysts' consensus estimates. Is now the time to buy FLWS? Find out in our full research report (it's free). Revenue: $331.5 million vs analyst estimates of $364.2 million (12.6% year-on-year decline, 9% miss) Adjusted EPS: -$0.71 vs analyst estimates of -$0.34 (significant miss) Operating Margin: -16.7%, down from -6.4% in the same quarter last year Market Capitalization: $327.4 million 1-800-FLOWERS' first quarter results were shaped by persistent macroeconomic headwinds and internal operational issues. Management openly acknowledged the impact of declining consumer sentiment, increased marketing costs, and the fallout from a problematic order management system rollout. Chairman Jim McCann described the implementation as a 'colossal screw-up,' noting that it disrupted fulfillment and customer service, particularly in the company's food group brands. The company also cited a highly promotional sales environment and the reduction of lower-income customer spending as factors that weighed on performance. These challenges combined to drive a double-digit decline in revenue and significantly weaker profitability. Looking ahead, 1-800-FLOWERS is focused on its new Celebrations Wave strategy to address both external and internal pressures. Management emphasized plans to reduce marketing costs, improve operational efficiency through artificial intelligence, and revamp customer engagement with a new digital ecosystem. CFO James Langrock explained that, 'We anticipate that our new celebrations ecosystem will meaningfully reduce our customer acquisition costs and enhance customer lifetime value over time.' The company withdrew near-term guidance due to external uncertainties, including tariffs and consumer spending trends, but expects the new strategy to eventually restore growth by targeting both everyday and holiday occasions with a broader product range and more personalized experiences. Management attributed the quarter's underperformance to macroeconomic softness, shifting consumer behavior, and internal execution missteps, while highlighting new leadership and a transformative strategy to realign the business. Order management system setbacks: The company's implementation of a new order management system led to operational disruptions, inventory write-offs, and customer dissatisfaction, particularly in the Harry & David food group. Management estimated the impact at over $20 million in lost holiday sales and more than $11 million in incremental costs across two quarters. Marketing cost pressures: Shifting digital platforms toward paid placements reduced the effectiveness of traditional marketing channels, raising customer acquisition costs. Management noted that sales and marketing spend has averaged 25% of revenue in recent years and expects new strategies to lower this over time. Everyday business softness: While holiday occasions like Valentine's Day performed reasonably, everyday gifting occasions saw significant declines. The company attributed this to weakening consumer confidence and decreased discretionary spending among lower-income customers. Product mix and customer segmentation: Higher-income customers continued to spend, with new high-ticket offerings selling out, while lower-income segments reduced purchases. This mix shift elevated average order values but masked underlying volume declines. Retail strategy evolution: The exit from most physical retail during the pandemic was described as a mistake by management. The company is now selectively re-entering retail through pop-up stores and a new flagship Harry & David location, aiming to increase brand engagement and diversify sales channels. The company's outlook hinges on the successful execution of its Celebrations Wave strategy, ongoing cost reductions, and adaptability to consumer demand volatility. Celebrations Wave rollout: Management is betting on the new Celebrations Wave initiative—combining a digital ecosystem, personalized engagement, and loyalty enhancements—to drive frequency, reduce acquisition costs, and broaden the customer base beyond holiday periods. Early investments include a new app, expanded greeting card options, and a revamped website. Cost reduction and operational efficiency: The company is targeting annualized cost reductions of $40 million, including $17 million already achieved. These savings are expected to support reinvestment in technology, marketing innovation, and margin stabilization, but near-term volatility remains possible as execution continues. Tariff and macroeconomic headwinds: Exposure to tariffs, especially on goods from China, and uncertain consumer sentiment remain key risks. The company is working with vendors on cost concessions, adjusting its product assortment, and evaluating pricing strategies to mitigate impacts, but visibility remains limited. Over the next few quarters, the StockStory team will monitor (1) progress on resolving order management system issues and restoration of everyday business trends, (2) measurable reductions in marketing spend as the Celebrations Wave ecosystem expands, and (3) the revenue and engagement impact of new digital products and retail concepts. The ability to navigate tariff risks and maintain customer loyalty will also be key markers of execution. 1-800-FLOWERS currently trades at a forward P/E ratio of 17.5×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Reflecting On Specialized Consumer Services Stocks' Q1 Earnings: LKQ (NASDAQ:LKQ)
Looking back on specialized consumer services stocks' Q1 earnings, we examine this quarter's best and worst performers, including LKQ (NASDAQ:LKQ) and its peers. Some consumer discretionary companies don't fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better. The 10 specialized consumer services stocks we track reported a slower Q1. As a group, revenues missed analysts' consensus estimates by 0.6% while next quarter's revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results. A global distributor of vehicle parts and accessories, LKQ (NASDAQ:LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products. LKQ reported revenues of $3.46 billion, down 6.5% year on year. This print fell short of analysts' expectations by 4.1%. Overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts' expectations significantly and a slight miss of analysts' organic revenue estimates. 'We are pleased with our first-quarter performance and are driven to sustain this momentum as we advance our operational excellence initiatives and generate long-term value despite market uncertainties. By embracing these initiatives, even with lower demand, the team's unwavering focus on optimizing the Company's cost structure is reflected in our year-over-year EBITDA percentage growth' stated Justin Jude, President and Chief Executive Officer. The stock is down 2.7% since reporting and currently trades at $41.01. Read our full report on LKQ here, it's free. Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans. Frontdoor reported revenues of $426 million, up 12.7% year on year, outperforming analysts' expectations by 2.1%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts' expectations and an impressive beat of analysts' EPS estimates. Frontdoor achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 32.9% since reporting. It currently trades at $54.62. Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it's free. Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally. 1-800-FLOWERS reported revenues of $331.5 million, down 12.6% year on year, falling short of analysts' expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. 1-800-FLOWERS delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.5% since the results and currently trades at $5.19. Read our full analysis of 1-800-FLOWERS's results here. Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE:ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection. ADT reported revenues of $1.27 billion, up 6.5% year on year. This result topped analysts' expectations by 2%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts' EPS estimates but a miss of analysts' customers estimates. The stock is up 7.3% since reporting and currently trades at $8.50. Read our full, actionable report on ADT here, it's free. Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies. Matthews reported revenues of $427.6 million, down 9.3% year on year. This number came in 1.8% below analysts' expectations. It was a softer quarter as it also recorded a significant miss of analysts' EPS estimates and full-year EBITDA guidance missing analysts' expectations. The stock is up 5.4% since reporting and currently trades at $21.57. Read our full, actionable report on Matthews here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
09-05-2025
- Business
- Yahoo
Why 1-800-FLOWERS (FLWS) Shares Are Getting Obliterated Today
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell 16.3% in the afternoon session after the company reported poor first quarter 2025 results which fell short of Wall Street's estimates across revenue, EPS, and EBITDA. Revenue dropped over 12% compared to the previous year, weighed down by a steep decline in the Gourmet Foods and Gift Baskets segment, where sales fell more than 18%. This slump, along with persistent order system issues and a promotional sales push, dragged down performance across categories. Management also withdrew near-term guidance, citing an unpredictable macro environment. Overall, this was a weaker quarter. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it's free. 1-800-FLOWERS's shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 29 days ago when the stock dropped 7.4% on the news that stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains. Also, President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets. 1-800-FLOWERS is down 36.7% since the beginning of the year, and at $4.95 per share, it is trading 55% below its 52-week high of $11 from July 2024. Investors who bought $1,000 worth of 1-800-FLOWERS's shares 5 years ago would now be looking at an investment worth $220.96. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
1-800-FLOWERS (NASDAQ:FLWS) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops
E-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 12.6% year on year to $331.5 million. Its non-GAAP loss of $0.71 per share was significantly below analysts' consensus estimates. Is now the time to buy 1-800-FLOWERS? Find out in our full research report. Revenue: $331.5 million vs analyst estimates of $364.2 million (12.6% year-on-year decline, 9% miss) Adjusted EPS: -$0.71 vs analyst estimates of -$0.34 (significant miss) Adjusted EBITDA: -$34.92 million vs analyst estimates of -$12.43 million (-10.5% margin, significant miss) Operating Margin: -58.4%, down from -6.4% in the same quarter last year Free Cash Flow was -$160 million compared to -$121.4 million in the same quarter last year Market Capitalization: $360.6 million "While we are deeply disappointed by the quarterly results, we are steadfast in our commitment to turning this underperformance around," said Jim McCann, Executive Chairman and current Chief Executive Officer of Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, 1-800-FLOWERS grew its sales at a sluggish 5.1% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a poor baseline for our analysis. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. 1-800-FLOWERS's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 9.9% annually. We can dig further into the company's revenue dynamics by analyzing its most important segments, Gift Baskets and Flowers, which are 32.3% and 59.1% of revenue. Over the last two years, 1-800-FLOWERS's Gift Baskets revenue (food and fruits) averaged 81,656% year-on-year growth while its Flowers revenue (floral products) averaged 88,508% growth. This quarter, 1-800-FLOWERS missed Wall Street's estimates and reported a rather uninspiring 12.6% year-on-year revenue decline, generating $331.5 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below the sector average. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. 1-800-FLOWERS's operating margin has been trending down over the last 12 months and averaged negative 4.5% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they're spending loads of money to stay relevant, an unsustainable practice. This quarter, 1-800-FLOWERS generated a negative 58.4% operating margin. The company's consistent lack of profits raise a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for 1-800-FLOWERS, its EPS declined by 24.2% annually over the last five years while its revenue grew by 5.1%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. In Q1, 1-800-FLOWERS reported EPS at negative $0.71, down from negative $0.28 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast 1-800-FLOWERS's full-year EPS of negative $0.58 will reach break even. We struggled to find many positives in these results as its revenue, EPS, and EBITDA fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 8.4% to $5.31 immediately after reporting. The latest quarter from 1-800-FLOWERS's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
1-800-FLOWERS (FLWS) Reports Q1: Everything You Need To Know Ahead Of Earnings
E-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) will be announcing earnings results tomorrow after market close. Here's what you need to know. 1-800-FLOWERS missed analysts' revenue expectations by 3.4% last quarter, reporting revenues of $775.5 million, down 5.7% year on year. It was a disappointing quarter for the company, with full-year EBITDA guidance missing analysts' expectations significantly and a significant miss of analysts' EPS estimates. Is 1-800-FLOWERS a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting 1-800-FLOWERS's revenue to decline 4% year on year to $364.2 million, improving from the 9.1% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.34 per share. 1-800-FLOWERS Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at 1-800-FLOWERS's peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Frontdoor delivered year-on-year revenue growth of 12.7%, beating analysts' expectations by 2.1%, and ADT reported revenues up 6.5%, topping estimates by 2%. Frontdoor traded up 25.3% following the results while ADT's stock price was unchanged. Read our full analysis of Frontdoor's results here and ADT's results here. There has been positive sentiment among investors in the specialized consumer services segment, with share prices up 12.7% on average over the last month. 1-800-FLOWERS is up 14% during the same time and is heading into earnings with an average analyst price target of $10.50 (compared to the current share price of $5.77). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
