Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Equity Bottom-Up

1 800 flowers.com inc cl a / Equity Bottom-Up

<ul><li>FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although better than consensus of ($0.53).</li><li>Sales declined 10.0% to $242.1 million, below our forecast for a 7.1% decline to $249.9 million and consensus of $246.9 million.</li><li>E-commerce revenue declined 8.0%, with orders down 6.5% and average order value down 1.5%. </li></ul>

FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although better than consensus of ($0.53).Sales declined 10.0% to $242.1 million, below our forecast for a 7.1% decline to $249.9 million and consensus of $246.9 million.E-commerce revenue declined 8.0%, with orders down 6.5% and average order value down 1.5%. 

1-800-Flowers.com, Inc. - 1QFY25 About as Expected; No Changes to FY Estimates

<ul><li>We recently hosted a fireside chat with CFO Bill Shea and CAO James Langrock, who will move into the CFO role once Shea retires on December 29.</li><li>This report contains a transcript of the conversation, which can be accessed on demand.</li><li>Shea recounted his tenure at FLWS that went from being a floral company with a bunch of retail flower shops and a WATS line doing $150 million in sales to being the leading online gifting platform that it is today; from coming public during the dot.com bubble and managing through the Great Recession, and through all of the acquisitions the company has made over the past 20+ years, including the seminal Harry &amp; David purchase in 2014, which it had tried to buy earlier in the previous decade.</li></ul>

We recently hosted a fireside chat with CFO Bill Shea and CAO James Langrock, who will move into the CFO role once Shea retires on December 29.This report contains a transcript of the conversation, which can be accessed on demand.Shea recounted his tenure at FLWS that went from being a floral company with a bunch of retail flower shops and a WATS line doing $150 million in sales to being the leading online gifting platform that it is today; from coming public during the dot.com bubble and managing through the Great Recession, and through all of the acquisitions the company has made over the past 20+ years, including the seminal Harry &amp; David purchase in 2014, which it had tried to buy earlier in the previous decade.

1-800-Flowers.com, Inc. - Expect CFO Transition to Be Seamless

<ul><li>FLWS recently announced 4QFY24 results that were below our expectations.</li><li>Sales declined 9.5% versus our estimate of a 4.1% decline, and ongoing EBITDA was a loss of $8.8 million versus our estimate for a loss of $4.0 million.</li><li>Gross margin of 38.4% was better than our 38.0% estimate and the 37.1% reported in the year-ago quarter, continuing the favorable margin trends FLWS has been seeing all year.</li></ul>

FLWS recently announced 4QFY24 results that were below our expectations.Sales declined 9.5% versus our estimate of a 4.1% decline, and ongoing EBITDA was a loss of $8.8 million versus our estimate for a loss of $4.0 million.Gross margin of 38.4% was better than our 38.0% estimate and the 37.1% reported in the year-ago quarter, continuing the favorable margin trends FLWS has been seeing all year.

1-800-Flowers.com, Inc - FLWS: Trimming Estimates Following 4QFY24 Release

<ul><li>Founded as a floral shop in Manhattan in the 1970s, 1-800- FLOWERS.COM has built itself into a leading publicly traded e-commerce gifting platform through both organic growth by embracing leading-edge technology and acquisitions.</li><li>Like many direct-to-consumer (DTC) names, FLWS has been substantially affected by the recent pandemic.</li><li>After a surge of demand during the initial lockdown phase, the subsequent easing of consumer mobility restrictions, supply chain disruptions, and inflation have pressured results for the past several years.</li></ul>

Founded as a floral shop in Manhattan in the 1970s, 1-800- FLOWERS.COM has built itself into a leading publicly traded e-commerce gifting platform through both organic growth by embracing leading-edge technology and acquisitions.Like many direct-to-consumer (DTC) names, FLWS has been substantially affected by the recent pandemic.After a surge of demand during the initial lockdown phase, the subsequent easing of consumer mobility restrictions, supply chain disruptions, and inflation have pressured results for the past several years.

1-800-Flowers.com, Inc. - Initiating Coverage

Thematic (Sector/Industry)

<ul><li>Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship following the post- pandemic hangover that a lot of consumer names have suffered through.</li><li>There were several new management teams with new strategies, and a lot of talk about inflection points.</li><li>Vera Bradley’s CEO, CFO, and CMO have each been there for less than two years, and the company is about to roll out its Project Restoration strategic initiatives next month, which management believes will take the company into the third <span style="font-size: var(--content-font-size);">major stage of its lifecycle.</span></li></ul>

Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship following the post- pandemic hangover that a lot of consumer names have suffered through.There were several new management teams with new strategies, and a lot of talk about inflection points.Vera Bradley’s CEO, CFO, and CMO have each been there for less than two years, and the company is about to roll out its Project Restoration strategic initiatives next month, which management believes will take the company into the third major stage of its lifecycle.

Consumer Products Conference Recap - June 20, 2024

United States

1-800-FLOWERS.COM, Inc. is an e-commerce provider of floral products and gifts. The Company's product offerings, including fresh-cut and seasonal flowers, plants, floral arrangements, and home and garden merchandise, can be purchased online or by calling its toll-free telephone number.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

1 800 flowers.com inc cl a (FLWS US)

1-800-Flowers.com, Inc. - 1QFY25 About as Expected; No Changes to FY Estimates

FLWS reported 1QFY25 ongoing EPS of ($0.51), slightly below our forecast of ($0.48) and the ($0.48) reported in the year-ago quarter, although...

Water Tower Research

1-800-Flowers.com, Inc. - Expect CFO Transition to Be Seamless

We recently hosted a fireside chat with CFO Bill Shea and CAO James Langrock, who will move into the CFO role once Shea retires on December 29.

Water Tower Research

1-800-Flowers.com, Inc - FLWS: Trimming Estimates Following 4QFY24 Release

Sales declined 9.5% versus our estimate of a 4.1% decline, and ongoing EBITDA was a loss of $8.8 million versus our estimate for a loss of $4.0...

Water Tower Research

1-800-Flowers.com, Inc. - Initiating Coverage

Founded as a floral shop in Manhattan in the 1970s, 1-800- FLOWERS.COM has built itself into a leading publicly traded e-commerce gifting platform

Water Tower Research

Consumer Products Conference Recap - June 20, 2024

Many of the companies that participated in our recent Consumer Products Virtual Investor Conference have been working hard in righting the ship...

Water Tower Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)