What happened
Shareholders of online flower and gift provider 1-800-Flowers.com (FLWS 1.42%) would probably appreciate getting a gift basket in the mail today. After it reported its fiscal 2022 third-quarter financial update, 1-800-Flowers' shares tanked this morning. The stock was down 21.6% as of 10:39 a.m. ET.
So what
The gifts retailer reported revenue dropped 1% compared to the prior-year period. The $469.6 million in sales missed analyst estimates by more than $13 million, according to FactSet Research Systems consensus. A loss of $0.32 per share was also worse than expected. Revenue, however, did jump 68.4% above the fiscal 2020 third quarter, which was prior to a pandemic-related sales boost.
Image source: Getty Images.
Now what
CEO Chris McCann noted that the results were below even what the company expected. He noted that while the Valentine's Day holiday went well for the brand, the company saw "overall slower consumer demand for everyday gifting occasions throughout the period."
The slowing sales led to significantly lower guidance for the fiscal year. Just three months ago, the company said it expected earnings per share in the range of $0.90 to $1. While analysts believed that would come in at the low end, the new guidance range is only $0.55 to $0.60 per diluted share.
The company said the change was based on "the continuing headwinds associated with the ongoing pandemic, increased costs for labor, inbound and outbound shipping and marketing, as well as consumer concerns regarding rising price inflation and geopolitical issues."
Many companies are facing similar challenges, but the new guidance was a major shift from just the last fiscal quarter. Investors today aren't waiting around for that to change again.
