With e-commerce gaining due to the coronavirus pandemic and the holiday season now underway, 1-800-Flowers.com /zigman2/quotes/204552624/composite FLWS +6.33% stock has got momentum.
Shares were up 5.5% on Black Friday, bringing the week’s stock increase to 11.3%. For the month, the stock has gained nearly 26%. And for the year, the gain is more than 72%.
The benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.74% is up 12.5% for 2020 to date.
In addition to flowers, 1-800-Flowers sells gourmet food baskets through brands like Harry & David, desserts and treats through Shari’s Berries and Wolferman’s Bakery, snacks through The Popcorn Factory, and steaks through Stock Yards and more .
In its most recent earnings announcement for the fiscal first quarter, 1-800-Flowers reported a loss of $9.8 million, or 15 cents per share, after a loss of $15.3 million, or 24 cents per share, last year. Revenue increased by more than half to $283.8 million from $129.1 million in 2019. E-commerce growth was 85.1%.
The FactSet consensus was for a loss of 13 cents per share and sales of $266.0 million.
“We expect the demand for our everyday gifting solutions will remain high,” said Chief Executive Christopher McCann on the late October earnings call.
With large gatherings and other celebrations reduced due to COVID-19, the everyday occasions that 1-800-Flowers says it has been capitalizing on through the pandemic are birthdays, anniversaries and sympathy or get well events.
“[W]e think the underlying e-commerce tailwinds from the quarter and implied in the holiday period further support double-digit-plus organic revenue growth in a normalized environment,” wrote Benchmark Research analysts in its most recent 1-800-Flowers note.
Benchmark rates 1-800-Flowers stock buy with a $35 price target.
For the fiscal second quarter, 1-800-Flowers expects revenue growth of 22% to 26%, with October showing strong demand. E-commerce growth is expected to be more than 40%, including contributions from PersonalizationMall, a recent $245.0 million acquisition from Bed Bath & Beyond Inc. /zigman2/quotes/209801102/composite BBBY +1.97%
The FactSet consensus is for revenue of $755.3 million, suggesting an increase of 24.7%.