Please ensure Javascript is enabled for purposes of website accessibility

1-800-Flowers.com Says 2020 Looks Like Everything’s Coming Up Roses

By Rich Duprey - Jun 18, 2020 at 10:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It looks like the florist will have a record-setting end to its fiscal year.

1-800-Flowers.com (FLWS -8.41%) says its outlook for the rest of the fiscal year is rosy indeed.

The florist said consumer demand began budding in March as the COVID-19 outbreak began, and now it expects full-year earnings to blossom into a 75% to 85% gain over last year, compared to its previous guidance that profits would only grow 15% to 17%. Analysts had forecast earnings of $0.62 per share for the fiscal year, which is an implied 19% growth rate.

Woman with bouquet of roses

Image source: Getty Images.

Care enough to send your best

The 1-800-Flowers investor update of its fiscal 2020 fourth quarter said that over the first 10 weeks of the quarter it was expecting its sales growth rate to double from its previous guidance. Where it had thought revenue would rise 8% to 9% it now believes it will jump 16% to 18%.

The primary cause is the quarter included Easter, which produced record sales for the florist, along with Mother's Day, where sales were also "very strong." With lockdown orders still in place, consumers were sending flowers to people they couldn't travel to visit.

The florist also raised expectations for the amount of free cash flow it will generate, now anticipating $75 million to $85 million for the year versus its previous guidance of $45 million to $50 million.

The strong sales trends, coupled with 1-800-Flowers being able to reduce its marketing costs during the period, was responsible for the massive performance upgrade, but management does not expect to replicate the results in fiscal 2021.

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

1-800-FLOWERS.COM, Inc. Stock Quote
1-800-FLOWERS.COM, Inc.
FLWS
$10.24 (-8.41%) $0.94

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
379%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.