1-800-FLOWERS.COM, Inc. Class A (FLWS)

Over the past six months, 1-800-FLOWERS.COM, Inc. stock has experienced a significant decline. The company reported a net loss of $200.0 million for fiscal year 2025, including a $143.8 million non-cash goodwill and intangible impairment charge, leading to a stock drop. The company's third-quarter performance was challenging, with revenue declining 12.6% due to macroeconomic forces affecting consumers. Research firms have downgraded the stock. Fund 1 Investments, LLC, a major shareholder, sold 4,167,813 shares of the company's stock on October 22, 2025. The company has faced challenges due to macroeconomic conditions, including a decline in consumer confidence and a highly promotional environment, as well as an ineffective customer retention approach and inefficient marketing spend.

The business of 1-800-FLOWERS.COM, Inc. is highly seasonal, with significant revenue generation concentrated around major holidays and gifting occasions. The Thanksgiving through Christmas holiday season is particularly crucial, generating nearly 50% of the company's annual revenues and all of its earnings. Other major floral gifting occasions include Mother's Day and Valentine's Day. Revenue can decline significantly during off-peak months compared to peak months. The company typically increases its workforce significantly to meet the surging demand during the holiday season.

1-800-FLOWERS.COM, Inc. is a leading provider of thoughtful expressions, offering a wide array of products designed to help customers connect and celebrate life's moments. The company's business encompasses three main segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet Wire Service. The Consumer Floral & Gifts segment offers fresh-cut flowers, floral and fruit arrangements, plants, and personalized gifts under various brands. The Gourmet Foods & Gift Baskets segment provides a diverse range of gourmet food products, gift baskets, and specialty treats from brands. BloomNet is an international B2B platform that provides products and services to professional florists, facilitating order fulfillment, and also offers greeting cards and floral gifts.

1-800-FLOWERS.COM, Inc. primarily operates across the United States, with over 125 retail stores and an extensive online presence. The company also has international channels as part of its e-commerce business platform. Its BloomNet network includes 5,000 florists and other local merchants across the U.S., offering same-day delivery capabilities.

1-800-FLOWERS.COM is recognized as one of the most prominent brands in the floral and gift industry. However, in the past year, the company's reputation has likely been indirectly affected by several operational and financial challenges, including an ineffective customer retention approach and inefficient marketing spend. A failed implementation of a new order management system during a peak season was a significant operational issue that likely led to revenue and customer loss, potentially impacting customer perception. The consistent decline in year-over-year sales for the past two years, particularly in "everyday gifting," and missed earnings expectations, could also contribute to a perception of an "underwhelming business with issues."

1-800-FLOWERS.COM, Inc. has 284 institutional owners and shareholders holding a total of 39,849,530 shares. Major institutional owners include Fund 1 Investments, LLC, Dimensional Fund Advisors Lp, Nomura Holdings Inc, Nantahala Capital Management, LLC, BlackRock, Inc., Newtyn Management, LLC, Aristotle Capital Boston, LLC, Gamco Investors, Inc. Et Al, EQ ADVISORS TRUST - 1290 VT GAMCO Small Company Value Portfolio Class IB, and Millennium Management Llc. Institutional investors own 38.43% of the company's stock, while insiders own 54.85% of the shares outstanding. Founder Jim McCann also holds significant ownership.