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1. Company Snapshot

1.a. Company Description

1-800-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.

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1.b. Last Insights on FLWS

The recent 3-month performance of 1-800-FLOWERS.COM, Inc. was negatively impacted by its Q1 2026 earnings report, which showed a quarterly loss of $0.83 per share, exceeding the Zacks Consensus Estimate of a loss of $0.59. This widened loss compared to a loss of $0.51 per share a year ago. Additionally, the company's Q1 results were released on October 30, 2025, and were preceded by a downgrade to Strong Sell by Zacks on October 21 and 31, 2025. The company is undergoing a turnaround strategy.

1.c. Company Highlights

2. 1-800-FLOWERS.COM's Fiscal 2026 First Quarter: A Strategic Shift

1-800-FLOWERS.COM reported a decline in consolidated revenue of 11.1% in the first quarter, primarily due to a strategic shift toward emphasizing positive marketing contribution margin. Gross margin also declined 240 basis points to 35.7%, mainly due to deleveraging on sales decline and higher tariffs. The company's EPS came out at -$0.83, missing estimates of -$0.59. Operating expenses, however, decreased $12 million to $127.3 million, primarily due to lower marketing and labor costs.

Publication Date: Nov -20

📋 Highlights
  • Revenue Decline:: Consolidated revenue dropped 11.1% due to a strategic shift toward marketing contribution margin prioritization.
  • Gross Margin Drop:: Gross margin fell 240 basis points to 35.7% from sales decline and higher tariffs.
  • Cost Savings Target:: $50 million in incremental cost savings projected over 2 years, with half ($25 million) expected in fiscal 2026.
  • New Channel Expansion:: Early progress on Amazon and Walmart integration, aiming for incremental top/bottom-line growth.
  • Pop-Up Store Testing:: 9 holiday pop-up stores opened, testing physical retail concepts for potential nationwide rollout.

Strategic Initiatives and Marketing Efforts

The company has begun to shift its marketing approach to prioritize contribution margin, allowing for more efficient and effective marketing spend. As Adolfo Villagomez, Chief Executive Officer, mentioned, "the company began to shift its marketing approach to prioritize contribution margin." This strategic shift is expected to drive growth in the long run, despite the short-term decline in revenue.

Competitive Environment and Holiday Season Performance

The company operates in a competitive environment in the consumer floral space, with more competitors emerging, increasing the cost of buying clicks and reducing marketing productivity. However, the company is optimistic about its holiday season performance, with expectations of a significant increase in sales during the Christmas holiday season. Back-to-school sales were stable, and the company expects strong wholesale sales and an increase in revenue for the holiday season.

Cost Reduction Efforts and Valuation

The company's cost reduction efforts are ongoing, with an anticipated incremental $50 million in cost savings over the next 2 years. With a P/S Ratio of 0.13 and an EV/EBITDA of -2.98, the company's valuation suggests that the market has already priced in some of the challenges. Analysts estimate next year's revenue growth at -7.5%, indicating a continued decline in revenue. The company's ROE and ROIC are also negative, at -67.38% and -32.61%, respectively, highlighting the need for continued cost reduction and strategic efforts to drive growth.

Expansion into New Channels

The company is expanding into new channels, including Amazon and Walmart, which is expected to drive incremental top and bottom line growth. The company is optimistic about the future, but still working on optimizing its value proposition and pricing. The company's exploration of rebranding, given its presence on multiple channels, is also a positive step towards adapting to the changing market landscape.

3. NewsRoom

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New Strong Sell Stocks for Oct. 31st

Oct -31

Source: zacks.com

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1-800-FLOWERS.COM, Inc. (FLWS) Q1 2026 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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1-800-Flowers.com (FLWS) Reports Q1 Loss, Lags Revenue Estimates

Oct -30

Source: zacks.com

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1-800-FLOWERS.COM, Inc. Reports Fiscal 2026 First Quarter Results

Oct -30

Source: businesswire.com

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1-800 FLOWERS.COM (FLWS) Expected to Announce Quarterly Earnings on Thursday

Oct -23

Source: defenseworld.net

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Traders Buy Large Volume of Call Options on 1-800 FLOWERS.COM (NASDAQ:FLWS)

Oct -23

Source: defenseworld.net

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New Strong Sell Stocks for Oct. 21

Oct -21

Source: zacks.com

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1-800-FLOWERS.COM Names Melanie Babcock as Chief Marketing and Growth Officer

Oct -06

Source: marketscreener.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.46%)

6. Segments

Gourmet Food and Gift Baskets

Expected Growth: 7.8%

Increasing demand for premium and artisanal food, growing trend of gifting and self-indulgence, and rising popularity of online shopping platforms drive the growth of gourmet food and gift baskets market.

Consumer Floral and Gifts

Expected Growth: 7.4%

The consumer floral and gifts segment is driven by increasing demand for online gifting, rising popularity of experiential gifts, and growing consumer preference for personalized products.

BloomNet

Expected Growth: 5.5%

The growth of BloomNet is driven by increasing demand for online flower ordering, rising adoption of digital platforms in the floristry industry, and strategic partnerships with florists and retailers, enabling efficient order transmission and fulfillment.

Intercompany Eliminations

Expected Growth: 2.5%

Consolidated financial statements drive growth in intercompany eliminations, fueled by 1-800-FLOWERS.COM, Inc.'s expanding e-commerce platform and increasing online sales, resulting in a forecasted CAGR of 2.5% from 2023 to 2028.

Corporate

Expected Growth: 10.4%

Growing demand for online gifting, increasing popularity of e-commerce, and expansion of product offerings drive growth. Strong brand recognition and strategic partnerships also contribute to the company's growth.

7. Detailed Products

Flowers and Bouquets

Fresh-cut flowers, bouquets, and arrangements for various occasions

Gourmet Food and Wine

Artisanal foods, chocolates, and wine gifts for special occasions

Plants and Gardens

Indoor and outdoor plants, gardening tools, and planters

Gift Baskets

Themed gift baskets for various occasions, such as birthdays, holidays, and get well

Fruit and Gourmet Baskets

Fresh fruit, gourmet cheese, and charcuterie baskets

Cakes and Cookies

Gourmet baked goods, including cakes, cookies, and brownies

Chocolates and Candies

Gourmet chocolates, truffles, and candies

Personalized Gifts

Customized gifts, including personalized jewelry, mugs, and picture frames

Home and Decor

Home decor items, including vases, candles, and decorative accents

8. 1-800-FLOWERS.COM, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for 1-800-FLOWERS.COM, Inc. is medium because while there are some substitutes available, such as local florists and online flower delivery services, the company's strong brand recognition and wide range of products help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for 1-800-FLOWERS.COM, Inc. is low because individual customers do not have a significant impact on the company's sales, and the company's large customer base helps to reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for 1-800-FLOWERS.COM, Inc. is medium because while the company relies on a network of suppliers for its products, it also has a diverse supplier base and is not heavily dependent on any one supplier.

Threat Of New Entrants

The threat of new entrants for 1-800-FLOWERS.COM, Inc. is high because the online flower delivery market is relatively easy to enter, and new entrants could potentially disrupt the market with innovative products or services.

Intensity Of Rivalry

The intensity of rivalry for 1-800-FLOWERS.COM, Inc. is high because the online flower delivery market is highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.12%
Debt Cost 3.95%
Equity Weight 58.88%
Equity Cost 12.30%
WACC 8.86%
Leverage 69.83%

11. Quality Control: 1-800-FLOWERS.COM, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Honest

A-Score: 4.0/10

Value: 4.7

Growth: 6.0

Quality: 6.4

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

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Stock-Card
1stdibs

A-Score: 3.9/10

Value: 8.4

Growth: 4.7

Quality: 5.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

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Big 5 Sporting Goods

A-Score: 3.7/10

Value: 9.8

Growth: 0.6

Quality: 3.6

Yield: 5.0

Momentum: 1.5

Volatility: 2.0

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Office Depot

A-Score: 3.3/10

Value: 6.6

Growth: 3.8

Quality: 2.9

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
1800Flowers

A-Score: 2.6/10

Value: 9.4

Growth: 1.0

Quality: 2.7

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
A.K.A. Brands

A-Score: 2.3/10

Value: 7.2

Growth: 3.4

Quality: 2.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.49$

Current Price

3.49$

Potential

-0.00%

Expected Cash-Flows