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In a year marked by challenging market conditions, 1-800 FLOWERS.COM , Inc. (NASDAQ:FLWS) has seen its stock price wither to a 52-week low, touching down at $5.42. According to InvestingPro data, the company currently trades at an attractive price-to-book ratio of 0.8x, suggesting potential undervaluation despite market headwinds. This latest price level reflects a significant retreat from more favorable valuations, encapsulating a stark 1-year change with the stock plummeting by -43.72%. Investors have watched the stock’s descent with concern, as the company grapples with the headwinds that have buffeted the broader e-commerce and gifting sectors, leading to a year of underperformance relative to previous expectations. The company maintains a healthy current ratio of 1.51, though three analysts have recently revised their earnings expectations downward. For deeper insights into FLWS’s valuation and 12 additional exclusive ProTips, visit InvestingPro.
In other recent news, 1-800-FLOWERS.COM reported its second-quarter fiscal year 2025 earnings, revealing a 6% decline in sales to $776 million, missing the consensus estimate by $27 million. The company also fell short of earnings per share expectations, posting $1.08 compared to the forecasted $1.20. Following these results, 1-800-FLOWERS.COM reduced its full-year 2025 EBITDA guidance by 22%, setting the revised midpoint at $70 million, lower than the pre-pandemic FY19 EBITDA of $82 million. In response to ongoing challenges, DA Davidson maintained a Neutral rating on the stock, with a consistent price target of $7.50, highlighting the need for significant consumer confidence improvements for revenue growth.
Additionally, 1-800-FLOWERS.COM has partnered with Uber Technologies (NYSE:UBER) to enhance its delivery capabilities through Uber Direct, aiming to support florists during peak seasons like Valentine’s Day. This collaboration allows florists in the BloomNet network to access additional delivery drivers, addressing capacity issues during high-demand periods. The company’s efforts to leverage Uber’s logistics expertise reflect a strategic move to improve delivery efficiency and customer experience.
Despite recent struggles, including issues with a new order management system, 1-800-FLOWERS.COM remains focused on cost reduction and AI-driven personalized marketing. The company anticipates a decline in full fiscal year revenue in the mid-single digits, with adjusted EBITDA projected between $65 million and $75 million. Analysts and investors are looking forward to the upcoming third fiscal quarter 2025 earnings report for further insights into the company’s performance and potential future adjustments to ratings and price targets.
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