Bulletin
Investor Alert

Market Pulse Archives

April 13, 2020, 1:12 p.m. EDT

1-800-Flowers stock drops 11% after downgrade on forecast for fewer floral purchases after solid Easter

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    1-800-FLOWERS.COM Inc. Cl A (FLWS)
  • X
    Bed Bath & Beyond Inc. (BBBY)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tonya Garcia

Shares of 1-800-Flowers.com Inc. /zigman2/quotes/204552624/composite FLWS +3.56% sank 11.4% after D.A Davidson downgraded the stock to neutral from buy, forecasting shrinking demand for floral arrangements as the economy sinks into recession. Analysts led by Linda Bolton Weiser slashed the price target on 1-800-Flowers to $14 from $26. "We expect online ordering of floral and gourmet food gifts to be strong during the stay-at-home period and that FY20 guidance can be achieved," analysts wrote. But that could change. "1-800-Flowers is sensitive to dropping consumer confidence, and ephemeral floral gifting declines in a recession." D.A. Davidson said Valentine's Day and Easter were strong holidays, with consumers following social distancing guidelines purchasing flowers while they stay home. Analysts also note a lawsuit filed by Bed Bath & Beyond Inc. /zigman2/quotes/209801102/composite BBBY +4.31% against 1-800-Flowers over the sale of PersonalizationMall.com, which was announced back in February. The flower seller has asked that closure of the deal be delayed until at least April 30 due to the Covid-19 outbreak. Shares of 1-800-Flowers have dropped 23% over the past year while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.60% is down nearly 6% for the period.

/zigman2/quotes/204552624/composite
US : U.S.: Nasdaq
$ 25.01
+0.86 +3.56%
Volume: 660,554
Sept. 25, 2020 4:00p
P/E Ratio
28.51
Dividend Yield
N/A
Market Cap
$1.61 billion
Rev. per Employee
$252,725
loading...
/zigman2/quotes/209801102/composite
US : U.S.: Nasdaq
$ 14.53
+0.60 +4.31%
Volume: 9.37M
Sept. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$1.83 billion
Rev. per Employee
$191,341
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,298.46
+51.87 +1.60%
Volume: 2.18B
Sept. 25, 2020 5:06p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.