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1-800 Flowers (FLWS)
NASDAQ:FLWS
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1-800 Flowers
(NASDAQ:FLWS)
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Rating:50Neutral
Price Target:
$3.50
▲(4.79% Upside)
Action:ReiteratedDate:01/30/26
The score is held back primarily by weak financial performance (losses, negative margins, and renewed cash burn) and a cautious FY2026 outlook from management. Technicals provide some offset with improving short-term momentum, while valuation is constrained by negative earnings and no dividend support.
Positive Factors
Balance sheet strength
Lower leverage versus the prior year and a meaningful asset base reduce refinancing and solvency risk. Manageable debt levels give the company flexibility to fund restructuring, absorb seasonal troughs, and execute cost-saving initiatives without immediate pressure to raise dilutive capital, supporting stability over the next several quarters.
Cost-savings and operational fixes
Achieved run-rate savings and a clear $50M target indicate structural margin remediation rather than one-off cuts. Combined with systems stabilization and organizational simplification, these actions should sustainably lower SG&A and improve operating leverage as volumes recover, enabling durable improvement in profitability over 2–6 months.
Channel diversification (B2B/marketplaces)
Growing wholesale, B2B and marketplace channels reduces dependence on direct e-commerce and search-driven traffic. Diversified distribution supports steadier order flow, broader geographic reach, and lower customer-acquisition volatility, making revenue streams more resilient even if direct channels face structural search or marketing headwinds.
Negative Factors
Profitability deterioration
Sizable multi-quarter losses and negative operating margins erode equity and constrain reinvestment. Sustained profitability recovery is required to restore returns and fund strategic initiatives; without durable top-line stabilization or continued structural cost cuts, losses could continue to depress ROE and investor optionality over the medium term.
Weak cash generation
Negative operating and free cash flow materially reduce financial flexibility, increasing reliance on existing liquidity or financing to cover operations and investments. Persisting cash burn limits the company’s ability to invest in growth areas or absorb cyclical downturns without drawing on credit or pausing strategic projects.
Demand weakness and cautious guidance
Company guidance signals that management expects top-line pressure to persist, implying recovery may be slow and that cost savings may only partially offset declines. Prolonged revenue contraction risks margin deleveraging, prolongs cash burn, and increases execution burden on structural initiatives to restore durable growth.
1-800 Flowers (FLWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$213.98M
Dividend YieldN/A
Average Volume (3M)633.28K
Price to Earnings (P/E)0.9
Beta (1Y)1.59
Revenue Growth-8.07%
EPS Growth-2206.16%
CountryUS
Employees4,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.20
Shares Outstanding36,997,585
10 Day Avg. Volume383,600
30 Day Avg. Volume633,277
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.17
Price to Sales (P/S)0.19
P/FCF Ratio-4.63
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit0.60
Enterprise Value/Ebitda-14.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.91
Revenue Forecast (FY)$1.51B
1-800 Flowers Business Overview & Revenue Model
Company Description1-800-FLOWERS.COM, Inc., together with its subsidiaries, provides gifts for various occasions in the United States and internationally. It operates through three segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet. The company offers a range of products, including fresh-cut flowers, floral and fruit arrangements, plants, personalized products, dipped berries, popcorns, gourmet foods and gift baskets, cookies, chocolates, candies, wines, and gift-quality fruits. It offers its products and services through online platform under the 1-800-Flowers.com, 1-800-Baskets.com, Cheryl's Cookies, FruitBouquets.com, Harry & David, Moose Munch, The Popcorn Factory, Wolferman's Bakery, PersonalizationMall.com, Simply Chocolate, DesignPac, Stock Yards, Shari's Berries, BloomNet, Napco, and Flowerama brand names. 1-800-FLOWERS.COM, Inc. was founded in 1976 and is headquartered in Jericho, New York.
How the Company Makes MoneyThe company makes money primarily by selling floral and gifting products to consumers and businesses across multiple brands and channels (online and by phone). Key revenue streams include: (1) Floral and plant arrangements: revenue from bouquets, roses, plants, and related add-ons (e.g., vases, balloons, chocolates) purchased for occasions such as holidays and life events; (2) Gourmet food and gift baskets: revenue from branded food gifts (e.g., cookies, popcorn, fruit, and assorted gift baskets) sold directly to customers; (3) Personalized and celebratory gifts: revenue from customized items and keepsakes offered through its gifting brands; and (4) Corporate and business gifting: revenue from programs where businesses purchase gifts for employees, clients, and events. Operationally, the company captures revenue on each order and manages product sourcing, marketing, order taking, and customer service, while fulfillment may be performed by company-owned facilities and/or through partner networks (such as third-party florists and other gift fulfillment providers) that help deliver orders to recipients; these partnerships support geographic coverage and delivery speed and typically involve the company retaining a portion of the order value while paying fulfillment costs to partners. Additional factors contributing to earnings include seasonal demand peaks (e.g., major floral holidays) and cross-selling/upselling of complementary gift items at checkout. Specific segment-by-segment revenue amounts and exact partner economics are null.
1-800 Flowers Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across various business segments, providing insight into which areas are most profitable and where there might be opportunities or challenges.
Analyzes revenue across various business segments, providing insight into which areas are most profitable and where there might be opportunities or challenges.
Data provided by:
The Fly
The Fly1-800 Flowers Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Negative
The call described meaningful operational and structural progress — stabilization of systems, organizational simplification, a senior CIO hire, $15M of run-rate cost savings, improved marketing efficiency, and solid liquidity — which set a foundation for recovery. However, the company reported material near-term financial deterioration (consolidated revenue down 9.5%, Consumer Floral & Gift down 22.7%, order volume down ~16%, adjusted EBITDA down ~15.7%), ongoing commodity and tariff pressures, and front-loaded consulting costs. Guidance anticipates continued revenue pressure in 2026 (low double‑digit decline) while cost reductions are expected to partially offset top-line weakness. Overall, the call balances clear operational progress against significant near-term financial headwinds.Q2-2026 Updates
Positive Updates
Operational Stability and Systems Fixes
Order management system issues from last year were addressed and systems remained stable throughout the holiday season, representing a clear operational improvement versus prior period.
Organizational Simplification and Leadership Additions
Moved to a function-based operating structure to reduce duplication and speed decision-making; workforce reductions and leadership realignments executed; Alex Selikowski hired as CIO to lead technology, data, cybersecurity and BI.
Cost Savings Achieved and Targeted
Approximately $15 million in annualized run-rate cost savings achieved in fiscal 2026 quarter; company continues to target roughly $50 million of total run-rate savings across fiscal 2026 and fiscal 2027.
Improved Marketing Efficiency
Ad spend to sales ratio improved as marketing spend was reduced on a dollar basis and marketing contribution margin became a strategic focus; intentional discipline on marketing intended to improve long-term profitability.
Growth in Wholesale, B2B and Third‑Party Marketplaces
Stronger performance in B2B/wholesale partially offset e-commerce weakness; expansion of third-party marketplace offerings (Uber, DoorDash, Amazon, Walmart.com) noted as growing rapidly and expanding reach.
Healthy Liquidity and Balance Sheet Actions
Cash balance of $193.3 million, net cash position of $42.3 million at quarter end; borrowings under revolver were fully repaid during the quarter.
Conversion and AOV Improvements
Average order value (AOV) increased 5.2% year-over-year; company reported tests improving product discoverability and conversion on online experiences.
Negative Updates
Consolidated Revenue Decline
Consolidated revenue decreased 9.5% year-over-year for the second quarter, driven by a strategic pullback in marketing and a larger-than-expected decline in direct traffic.
Consumer Floral & Gift Segment Weakness
Consumer Floral and Gift segment revenue declined 22.7% year-over-year, a material drop that was a key driver of the overall revenue decline.
BloomNet and E‑commerce Pressure
BloomNet revenue declined 3.8% and e-commerce revenue declined (no single percent provided for total e-commerce) as direct traffic was negatively impacted by changes in search engine result pages and increased paid placements/AI-driven content.
Order Volume Reduction
Order volume declined roughly 16% year-over-year, partially offset by a 5.2% increase in AOV but indicating lower transaction activity.
Gross Margin and Adjusted EBITDA Declines
Gross margin decreased by 120 basis points to 42.1% from 43.3%; adjusted EBITDA fell to $98.1 million from $116.3 million (approximately a 15.7% decline year-over-year).
Commodity, Tariff and Shipping Headwinds
Higher commodity costs (notably cocoa), tariffs and shipping costs negatively impacted margins; cocoa remained significantly elevated year-over-year while other commodities started to stabilize.
Temporary Costs and Consulting Fees
Consulting and front-loaded implementation costs (~$11 million expected through fiscal year end) are pressuring near-term results; approximately $12 million of anticipated incentive/consultant costs were excluded from normalized adjusted EBITDA commentary.
Unfavorable Retail Tests and Capital Discipline
Holiday pop-up stores underperformed and return on invested capital was deemed unattractive; company will not pursue additional pop-ups and is rethinking its physical retail approach, signaling setbacks for that channel test.
Weak Near‑Term Outlook and Guidance
Company expects 2026 revenue to decline in the low double-digit range and adjusted EBITDA to decline slightly year-over-year (though normalized adjusted EBITDA excludes certain costs and is expected to increase slightly).
Company Guidance
Management guided fiscal 2026 revenue to decline in the low double‑digit range and expects adjusted EBITDA to decline slightly versus the prior year (noting that on a normalized basis adjusted EBITDA would increase slightly excluding roughly $12M of anticipated incentive and consultant costs; consultant costs are front‑loaded at about $11M through June). They reiterated a target of ~ $50M total run‑rate cost savings across FY2026–FY2027 and said ~ $15M of annualized run‑rate savings have already been achieved; progress will not be linear (Valentine’s Day falls on a Saturday) and near‑term headwinds include search‑engine impacts to direct traffic, higher commodity/tariff costs and gross‑margin deleveraging (Q2 gross margin 42.1%, down 120 bps). For context Q2 consolidated revenue was down 9.5% (Consumer Floral & Gift down 22.7%, BloomNet down 3.8%), adjusted EBITDA was $98.1M vs. $116.3M a year ago, operating expenses fell $23.4M to $221.1M, net cash was $42.3M (cash $193.3M, inventory $148.9M), AOV was +5.2% and order volume was down ~16%.1-800 Flowers Financial Statement Overview
Summary
Fundamentals are pressured: TTM revenue declined (-4.42%), profitability deteriorated to a sizable net loss (~$213M) with negative EBIT margin (~-9.8%), and cash generation weakened (operating cash flow about -$6.8M; free cash flow about -$39.5M). The balance sheet leverage appears manageable (debt-to-equity ~0.46) and improved versus FY2025, but deeply negative ROE (~-0.78) underscores ongoing earnings strain.Income Statement
TTM (Trailing-Twelve-Months) performance is weak: revenue declined (-4.42%) and profitability deteriorated materially, with a net loss of ~$213M and negative operating profitability (EBIT margin about -9.8%). While gross margin remains relatively stable in the high-30% range, the cost structure below gross profit is pressuring results. The longer-term trend is also unfavorable, with revenue falling from ~$2.12B (2021) to ~$1.59B (TTM) and earnings swinging from profit (2021) to sizable losses (TTM).24
Negative
Balance Sheet
Leverage looks manageable on the latest TTM snapshot (debt-to-equity ~0.46, debt ~$134M vs. equity ~$290M), an improvement versus FY2025 (debt-to-equity ~1.01). However, returns are deeply negative (TTM return on equity ~-0.78), reflecting heavy losses and raising risk of balance-sheet pressure if losses persist. Asset base remains meaningful (~$893M), but the key weakness is the current earnings drag on equity value creation.52
Neutral
Cash Flow
Cash generation has weakened materially in TTM (operating cash flow about -$6.8M and free cash flow about -$39.5M), reversing the solid positive cash flow seen in FY2024. Although free cash flow growth is shown as sharply positive in TTM (from a more negative prior period), the business is still burning cash, which reduces financial flexibility if the earnings downturn continues.28
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.59B | 1.69B | 1.83B | 2.02B | 2.21B | 2.12B |
| Gross Profit | 596.59M | 652.27M | 734.75M | 757.53M | 821.74M | 896.43M |
| EBITDA | -25.36M | -144.30M | 58.47M | 20.96M | 85.85M | 197.49M |
| Net Income | -212.56M | -199.99M | -6.11M | -44.70M | 29.61M | 118.65M |
Balance Sheet | ||||||
| Total Assets | 893.06M | 772.62M | 1.08B | 1.11B | 1.15B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 193.34M | 46.50M | 159.44M | 126.81M | 31.46M | 173.57M |
| Total Debt | 351.29M | 271.33M | 309.49M | 329.48M | 299.08M | 270.88M |
| Total Liabilities | 603.36M | 504.33M | 617.44M | 636.29M | 642.32M | 567.61M |
| Stockholders Equity | 289.70M | 268.28M | 466.34M | 471.84M | 509.41M | 509.07M |
Cash Flow | ||||||
| Free Cash Flow | -39.49M | -67.83M | 56.37M | 70.70M | -61.22M | 118.07M |
| Operating Cash Flow | -6.76M | -26.36M | 95.00M | 115.35M | 5.19M | 173.29M |
| Investing Cash Flow | -32.73M | -44.46M | -42.30M | -50.83M | -89.69M | -307.92M |
| Financing Cash Flow | -14.39M | -42.11M | -20.07M | 30.82M | -57.61M | 67.69M |
1-800 Flowers Technical Analysis
Negative
3.34
Price Trends
3.88
Negative
3.81
Negative
4.54
Negative
Market Momentum
-0.14
Negative
42.01
Neutral
36.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLWS, the sentiment is Negative. The current price of 3.34 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.88, and below the 200-day MA of 4.54, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.01 is Neutral, neither overbought nor oversold. The STOCH value of 36.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLWS.
1-800 Flowers Risk Analysis
1-800 Flowers disclosed 42 risk factors in its most recent earnings report. 1-800 Flowers reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
1-800 Flowers Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $877.69M | 31.00 | 14.46% | ― | 31.20% | 38.38% | |
63 Neutral | $10.47B | 57.58 | 55.17% | ― | 9.80% | -46.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $5.29B | 33.41 | -15.36% | ― | 1.98% | -20.98% | |
53 Neutral | $447.17M | -38.47 | -34.47% | ― | -4.90% | 50.77% | |
50 Neutral | $213.98M | 0.88 | -67.22% | ― | -8.07% | -2206.16% | |
45 Neutral | $144.91M | -3.89 | -5.35% | ― | 6.20% | 9.12% |
* Consumer Cyclical Sector Average
FLWS
1-800 Flowers
3.34
-2.42
-42.01%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.