What Happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) fell 13% in the afternoon session after the company reported a wider-than-expected quarterly loss, posted a massive full-year net loss, and issued weak forward guidance. According to a company press release, 1-800-FLOWERS generated quarterly revenue of $293.1 million, down 12.9% year over year, and reported an adjusted loss of $0.80 per share. For the full year, the company generated revenue of $1.50 billion, adjusted EBITDA of $2.9 million, and a net loss of $134.8 million, which included a $45.2 million non-cash goodwill and intangible impairment charge. The company also amended its credit agreement and projected fiscal year 2027 EBITDA of $12.5 million at the midpoint. The adjusted loss per share missed Wall Street's expectation of a $0.72 loss, and the forward EBITDA outlook fell significantly short of analyst estimates of $20.02 million, prompting a sell-off as investors reacted to the prolonged top-line pressures.
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What Is The Market Telling Us
1-800-FLOWERS’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 18.6% on the news that the company reported fourth-quarter results that featured a significant beat on profit, even as revenue declined year on year. The floral and gift retailer posted adjusted earnings of $1.20 per share, well above the consensus estimate of $0.86. While total revenue fell 9.5% year on year to $702.2 million, the figure was in line with forecasts. Despite the drop in sales, the company's profitability improved, as highlighted by the strong earnings beat. Additionally, its free cash flow margin increased to 43% from 41% in the same quarter last year, indicating better cash generation from its operations.
1-800-FLOWERS is down 21% since the beginning of the year, and at $2.92 per share, it is trading 48.4% below its 52-week high of $5.65 from September 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at only $89.14.
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