Fund 1 Investments LLC increases stake in 1-800 Flowers with $675k purchase

Fund 1 Investments LLC, a significant shareholder in 1 800 Flowers.com Inc. (NASDAQ:FLWS), has expanded its position in the company with a series of stock purchases. According to a recent SEC filing, the firm acquired a total of 127,598 shares over three transactions from April 10 to April 14. The shares were purchased at prices ranging from $5.2734 to $5.3177 per share, amounting to a total investment of approximately $675,123. The purchases come as the stock trades near its 52-week low of $4.96, with InvestingPro analysis indicating the company is currently undervalued.

These acquisitions were made for the benefit of PLP Funds Master Fund LP, with Pleasant Lake Partners LLC acting as the investment adviser. The transactions have increased the total shares owned by Fund 1 Investments LLC to 8,360,567 shares. This move underscores the firm’s confidence in the long-term prospects of 1 800 Flowers, a leading retailer in the floral and gift industry with a market capitalization of $339 million. The company maintains a healthy current ratio of 1.51, indicating strong liquidity, while operating with a moderate debt-to-equity ratio of 0.56. Discover more insights about FLWS and 1,400+ other stocks with comprehensive Pro Research Reports on InvestingPro.

In other recent news, 1-800-FLOWERS.COM reported a challenging second quarter for fiscal year 2025, with revenue dropping 5.7% year-over-year to $775.5 million, missing the forecasted $801.9 million. The company also missed earnings per share estimates, reporting $1.08 compared to the expected $1.20. This financial underperformance led to a reduction in the full-year 2025 EBITDA guidance by 22%, with the revised midpoint now set at $70 million. DA Davidson maintained a Neutral rating on the company, with a price target of $7.50, reflecting a cautious approach amid ongoing sales declines and economic challenges.

In a bid to enhance its delivery capabilities, 1-800-FLOWERS.COM has partnered with Uber Technologies (NYSE:UBER) to utilize Uber Direct for on-demand delivery services. This collaboration aims to support local florists in managing demand surges, particularly during peak seasons like Valentine’s Day. The integration with Uber Direct will allow florists in the BloomNet network to access additional delivery drivers, improving logistics and customer service. Despite these operational efforts, the company continues to face challenges with its order management system, which impacted revenue and earnings for its Harry and David brand during the holiday season.

Looking forward, 1-800-FLOWERS.COM plans to focus on cost reduction and leverage AI for personalized marketing to improve efficiency and customer engagement. The company has also reduced its calendar year 2026 EBITDA estimate from $101 million to $96 million, reflecting adjustments to its financial forecasts. Investors and analysts are closely watching the company’s upcoming earnings report for further insights into its financial health and strategic initiatives.

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