Latest news with #FLWS
Yahoo
2 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
09-05-2025
- Business
- Yahoo
1-800-Flowers.com Inc (FLWS) Q3 2025 Earnings Call Highlights: Strategic Shifts Amid Revenue ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inc (NASDAQ:FLWS) introduced a transformative long-term strategy called Celebrations Wave, aimed at enhancing customer engagement and driving growth. The company welcomed Adolfo Vela Gomez as the new CEO, bringing significant experience in leading consumer businesses and digital transformations. Henry Mori joined as the Chief AI and Transformation Officer, bringing expertise in AI-driven initiatives to drive growth and innovation. The company plans to reduce costs by approximately $40 million annually, with $17 million in reductions already executed. Celebrations Wave aims to leverage advanced technologies to create a comprehensive ecosystem for deeper customer relationships, expected to improve financial performance over the next few years. Inc (NASDAQ:FLWS) faced a challenging third quarter with a 12.6% decline in revenue, impacted by macroeconomic pressures and declining consumer confidence. The company experienced a significant decline in its consumer floral and gift segment and gourmet foods and gift basket segment. The implementation of a new order management system was mishandled, resulting in customer dissatisfaction and financial losses. The company recorded a non-cash goodwill and trade name impairment charge, impacting earnings for the period. Due to the evolving macroeconomic landscape and uncertainties, the company decided to withdraw its guidance, reflecting unpredictable external factors. Warning! GuruFocus has detected 5 Warning Signs with FLWS. Q: Can you provide more details on the impact of Valentine's Day and the Easter shift on quarterly sales? A: Jim McCann, Chairman and CEO, explained that Valentine's Day, which fell on a Friday, was favorable, but the softness in January and March affected the quarter. The Easter shift also impacted sales, with revenue down 12.6%, but adjusting for Easter, it would have been down 8.9%. Q: How much did the system implementation issues affect sales and costs? A: Jim McCann acknowledged the implementation of the order management system was a significant error, impacting customer satisfaction and sales. James Lankrock, CFO, noted the issues resulted in a $20+ million top-line impact in Q2 and $11 million in incremental costs over two quarters. Q: What is the timeline for the Celebrations Wave program, and what can be achieved in the first year? A: Jim McCann stated that the focus is on leveraging AI to improve efficiency and customer service. Tom Hartnett, President, added that the initial steps include enhancing relationship management capabilities and personalizing customer experiences, with foundational elements already in place for the forthcoming year. Q: How did the bifurcated market affect revenue, and was there a shift in customer spending? A: Tom Hartnett noted challenges with lower-income consumers reducing discretionary spending, while higher-income customers continued to spend, with average ticket prices increasing due to a broader range of price points. Q: Can you elaborate on the decision to exit retail during the pandemic and the current retail strategy? A: Jim McCann admitted exiting retail was a mistake, as multi-channel approaches are beneficial. The company is now testing holiday stores and year-round locations, with a focus on high-traffic areas and leveraging retail for brand exposure and customer interaction. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
05-05-2025
- Business
- Yahoo
When Should You Buy 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)?
While Inc. (NASDAQ:FLWS) might not have the largest market cap around , it saw a decent share price growth of 11% on the NASDAQGS over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let's take a look at outlook and value based on the most recent financial data to see if the opportunity still exists. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Good news, investors! is still a bargain right now. According to our valuation, the intrinsic value for the stock is $9.07, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. See our latest analysis for Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. However, with a relatively muted revenue growth of 1.2% expected in the upcoming year, short term growth doesn't seem like a key driver for a buy decision for Are you a shareholder? Even though growth is relatively muted, since FLWS is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on FLWS for a while, now might be the time to make a leap. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy FLWS. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy. It can be quite valuable to consider what analysts expect for from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-04-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock for Long-Term Investors and 2 to Be Wary Of
The stocks in this article have caught Wall Street's attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bullish calls are justified. That said, here is one stock likely to meet or exceed Wall Street's lofty expectations and two where its enthusiasm might be excessive. Consensus Price Target: $10.88 (95.7% implied return) Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally. Why Is FLWS Risky? Products and services have few die-hard fans as sales have declined by 9.7% annually over the last two years Earnings per share fell by 29.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions 1-800-FLOWERS's stock price of $5.45 implies a valuation ratio of 17.5x forward price-to-earnings. If you're considering FLWS for your portfolio, see our FREE research report to learn more. Consensus Price Target: $211 (43.2% implied return) Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy. Why Does CRAI Fall Short? Modest revenue base of $687.4 million gives it less fixed cost leverage and fewer distribution channels than larger companies Projected sales decline of 1.2% for the next 12 months points to a tough demand environment ahead Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.6 percentage points CRA is trading at $164.50 per share, or 21.7x forward price-to-earnings. Read our free research report to see why you should think twice about including CRAI in your portfolio, it's free. Consensus Price Target: $26.33 (35.9% implied return) With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally. Why Will RELY Beat the Market? Active Customers have grown by 39.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Incremental sales over the last three years have been highly profitable as its earnings per share increased by 88.9% annually, topping its revenue gains Free cash flow margin increased by 19.3 percentage points over the last few years, giving the company more capital to invest or return to shareholders At $20.08 per share, Remitly trades at 22x forward EV-to-EBITDA. Is now a good time to buy? Find out 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 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
1 Small-Cap Stock on Our Buy List and 2 to Think Twice About
Investors looking for hidden gems should keep an eye on small-cap stocks because they're frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one small-cap stock that could amplify your portfolio's returns and two that may have trouble. Market Cap: $342.2 million Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally. Why Do We Pass on FLWS? Products and services aren't resonating with the market as its revenue declined by 9.7% annually over the last two years Incremental sales over the last five years were much less profitable as its earnings per share fell by 29.6% annually while its revenue grew Eroding returns on capital from an already low base indicate that management's recent investments are destroying value 1-800-FLOWERS's stock price of $5.48 implies a valuation ratio of 17x forward price-to-earnings. To fully understand why you should be careful with FLWS, check out our full research report (it's free). Market Cap: $4.33 billion Established after the founder noticed the difficulty freight wagons had making sharp turns, Timken (NYSE:TKR) is a provider of industrial parts used across various sectors. Why Are We Out on TKR? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Earnings per share fell by 2.9% annually over the last two years while its revenue was flat, showing each sale was less profitable Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.3 percentage points Timken is trading at $63.30 per share, or 9.7x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TKR. Market Cap: $953.5 million Powering what it calls the "circular economy" with over 5.5 million registered buyers across its platforms, Liquidity Services (NASDAQ:LQDT) operates online marketplaces that connect buyers and sellers of surplus assets, from consumer returns to industrial equipment to government property. Why Are We Bullish on LQDT? Annual revenue growth of 20.4% over the past two years was outstanding, reflecting market share gains this cycle Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Rising returns on capital show management is finding more attractive investment opportunities At $31 per share, Liquidity Services trades at 17.6x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
