What happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell 8.8% in the afternoon session after the company reported its fiscal 2027 first quarter results and updated its financial outlook. According to the company’s release, revenue was $171.4 million, below the $196.5 million estimate. The adjusted loss was 78 cents a share, wider than the 57-cent loss analysts expected. Other websites and the wholesale business were weak, while the main websites improved. The company updated its outlook for the sale of PersonalizationMall.com and Things Remembered, and now expects full-year adjusted EBITDA of about $12.5 million at the midpoint, below the $14.1 million estimate.
After the initial drop, the shares shed some of the losses and closed the day at $2.59, down 9% from the previous close.
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What is the market telling us
1-800-FLOWERS’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 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 29.8% since the beginning of the year, and at $2.59 per share, it is trading 47.6% below its 52-week high of $4.94 from December 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at only $73.43.
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