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On Friday, Noble Capital downgraded 1-800-FLOWERS.COM (NASDAQ:FLWS) stock from Outperform to Market Perform. The adjustment comes as the company launches its new Celebrations Wave initiative, a strategic move aimed at leveraging new technology and evolving consumer behavior. According to InvestingPro data, the company currently has a market capitalization of $287 million and generates annual revenue of $1.71 billion.
Michael Kupinski of Noble Capital explained that 1-800-FLOWERS.COM is actively using the current disruptive market environment to reshape and refocus its business. As part of this initiative, the company has introduced a new app named Celebrations, designed to enhance the consumer’s gifting experience.
The downgrade to Market Perform reflects concerns over the uncertain fundamental environment and revised expectations for the company’s fiscal 2026 performance. Kupinski noted that 1-800-FLOWERS.COM’s shares are trading at a multiple of 12.5 times Enterprise Value to the firm’s adjusted fiscal full year 2026 EBITDA estimate. This valuation is higher than the industry peer average of 10.5 times. InvestingPro analysis shows the company’s current EV/EBITDA multiple stands at 61.85x, with negative earnings of $2.64 per share over the last twelve months.
The analyst’s comments indicate a cautious outlook, suggesting that the company’s stock price may already reflect the potential benefits of the Celebrations Wave initiative. The new app is expected to play a significant role in guiding consumers through their gifting decisions, which could be pivotal for the company’s future growth.
In light of these developments, investors are now watching to see how 1-800-FLOWERS.COM’s strategic changes will influence its financial performance in the coming years, against the backdrop of an industry that is facing its own set of challenges and opportunities. The stock has declined over 35% in the past six months, though InvestingPro analysis suggests the company is currently undervalued. Subscribers can access the comprehensive Pro Research Report, which provides detailed insights into the company’s financial health, valuation metrics, and growth prospects.
In other recent news, 1-800-Flowers.com announced its third-quarter 2025 financial results, revealing a substantial earnings and revenue shortfall. The company reported an earnings per share (EPS) of -$0.71, missing analyst expectations by $0.45, with revenue at $331.45 million, falling short of the anticipated $364.08 million. Notably, the BloomNet segment showed growth, while other segments experienced declines. The company has withdrawn its previous financial guidance, focusing instead on its "Celebrations Wave" strategy to improve customer engagement and reduce costs. Analysts have expressed concerns over the company’s increased net debt, which rose to $75 million from $9 million a year ago. The firm is implementing cost reductions, aiming to cut approximately $40 million annually. Additionally, 1-800-Flowers.com announced leadership changes with Adolfo Villagomez stepping in as the new CEO to lead the company through its strategic transformation.
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