One-glance verdict
Undervalued
$24.15 our estimate vs market $4.02
Wall Street consensus: $5.50 (-77.2% lower than our fair-value estimate)
83% below our estimate, below the bear case
Fundamentals snapshot
1-800-FLOWERS.COM, Inc.
FLWS · NMS · Consumer Cyclical · Specialty Retail
Current price
$4.02
52-week range
$2.89 - $7.10
Market cap
$257.68M
Balance sheet
Distressed
-3.95x Concerning
Net debt $201.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -52.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 1.9% to -17.9% over 3 years.
What this company does
1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM is a family of online brands that sell gifts for special occasions, ranging from its namesake flowers to gourmet food baskets from Harry & David. The company makes money primarily by selling these items directly to customers for holidays, birthdays, and other events. By owning many different popular gift brands, the company aims to be a one-stop-shop for customers and capture a larger share of their gift-giving budget.
How the company got here
The company started in 1976 when its founder, Jim McCann, bought a single flower shop in New York City. A key turning point was in the 1980s when he acquired the phone number 1-800-FLOWERS, which made it easy for customers to order from anywhere. The company was an early adopter of e-commerce (selling things online), launching on services like AOL and its own website in the 1990s. Over the years, it grew by acquiring other companies, like Harry & David, Cheryl's Cookies, and PersonalizationMall.com, to sell more than just flowers. This transformed it from a flower delivery service into a large online gifting platform with many brands.
What it actually does
1-800-FLOWERS.COM is a company that sells a wide variety of gifts for occasions like birthdays, holidays, and anniversaries. While it's famous for fresh flowers and floral arrangements, it also sells gourmet foods, gift baskets, personalized items, cookies, chocolates, and plants. You can think of it as an online department store for gifts, where you can find something for almost any event or person. The company operates many different brands, such as Harry & David for gourmet foods and PersonalizationMall.com for customized gifts.
Gourmet Foods & Gift Baskets
This is the company's largest business segment, making up nearly half of its sales. This division sells high-quality food items and gift baskets through well-known brands like Harry & David (famous for pears and fruit baskets), Cheryl's Cookies, and The Popcorn Factory. Customers are typically individuals and businesses buying premium gifts for holidays or special occasions. The company has grown this segment significantly through acquisitions (buying other companies) to offer a wider variety of non-floral gifts.
Consumer Floral & Gifts
This is the original and most famous part of the business, centered around the 1-800-Flowers.com brand. It sells fresh flowers, plants, and other gifts directly to people shopping for occasions like Valentine's Day and Mother's Day. This segment also includes brands for personalized gifts, such as PersonalizationMall.com and Things Remembered. While it's a huge part of the company's identity, it now brings in slightly less revenue (the total amount of money generated from sales) than the gourmet foods division.
BloomNet
This part of the company doesn't sell directly to the public; instead, it's a network for thousands of local professional florists across the country. Local flower shops pay to be part of BloomNet, which provides them with technology, marketing support, and a system to send and receive flower orders from other florists. This segment is a smaller but important part of the business because it helps the company deliver flowers quickly, often on the same day, by using local shops to fulfill the orders.
What management is betting on now
The company's main focus is on becoming a complete gifting destination for all occasions, not just for flowers. They are investing in technology, like artificial intelligence (AI), to make their website and apps easier to use and to offer more personalized gift recommendations. Management is also working to make the company more efficient by improving its supply chain (the system of getting products to customers) and cutting costs. Another key strategy is to encourage customers who buy from one of their brands, like Harry & David, to also shop at their other brands, like 1-800-Flowers.com, through loyalty programs like Celebrations Passport.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-17.20M
FY2025 Q1
$-189.32M
FY2025 Q2
$317.60M
FY2025 Q3
$-160.01M
FY2025 Q4
$-36.10M
FY2026 Q1
$-145.63M
FY2026 Q2
$302.25M
FY2026 Q3
$-136.60M
Revenue
$293.01M
Net income
$-100.06M
Diluted EPS
-1.56
Operating cash flow
$-128.05M
Free cash flow
$-136.60M
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Sources
Revenue
$702.18M
Net income
$70.55M
Diluted EPS
1.10
Operating cash flow
$309.88M
Free cash flow
$302.25M
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Sources
Revenue
$215.20M
Net income
$-52.96M
Diluted EPS
-0.83
Operating cash flow
$-138.97M
Free cash flow
$-145.63M
Fetching…
Sources
Revenue
$336.62M
Net income
$-51.91M
Diluted EPS
-0.80
Operating cash flow
$-27.07M
Free cash flow
$-36.10M
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Sources
Revenue
$331.45M
Net income
$-178.24M
Diluted EPS
-2.80
Operating cash flow
$-150.60M
Free cash flow
$-160.01M
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Sources
Revenue
$775.49M
Net income
$64.35M
Diluted EPS
1.00
Operating cash flow
$328.55M
Free cash flow
$317.60M
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Sources
Revenue
$242.09M
Net income
$-34.19M
Diluted EPS
-0.53
Operating cash flow
$-177.24M
Free cash flow
$-189.32M
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Sources
Revenue
$360.91M
Net income
$-20.87M
Diluted EPS
-0.09
Operating cash flow
$-5.05M
Free cash flow
$-17.20M
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Sources
Is it cheap or expensive?
Fair value $24.15 vs current price $4.02
Wall Street consensus is the average analyst price target: $5.50 (-77.2% lower than our fair-value estimate).
Our most-likely fair value is $24.15 a share — about 500.6% above today's price of $4.02, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $201.5M. Interest coverage -4.0x.
Net debt
$201.48M
Interest coverage
-3.95x
1-800-FLOWERS.COM, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
FLWS
BASELINE
1-800-FLOWERS.COM, Inc.
Total debt $252.17M Interest coverage -3.95x This is the baseline the peer rows are being compared against.
Total debt $261.36M Interest coverage -2.37x Neither company has much profit cushion over interest right now.
Total debt $125.69M Interest coverage 82.93x This peer still has a real interest-payment cushion, while FLWS does not.
Total debt $37.68M Interest coverage -21.65x Neither company has much profit cushion over interest right now.
Total debt $1.22B Interest coverage 38.17x This peer still has a real interest-payment cushion, while FLWS does not.
What you should know
The case for and against FLWS
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -52.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 1.9% to -17.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-6.74x
P/B
1.34x
P/S
0.17x
EV/EBITDA
-26.53x
PEG ratio
0.85x
Profitability
How much profit each dollar creates
Gross margin
38.1%
Operating margin
-17.9%
Net margin
-8.7%
ROE
-52.7%
ROA
-5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.31x
Current ratio
1.14x
Quick ratio
0.37x
Total debt
$252.17M
Total cash
$50.70M
Growth
How the business has been compounding
Revenue TTM
$1.55B
Revenue 5Y CAGR
-5.6%
EPS TTM
-2.10
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$15.79M
Free CF TTM
$-67.83M
FCF margin
-4.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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