What Happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) jumped 18.6% in the afternoon session after the company reported fourth-quarter results that featured a significant beat on profit, even as revenue declined year on year.
The floral and gift retailer posted adjusted earnings of $1.20 per share, well above the consensus estimate of $0.86. While total revenue fell 9.5% year on year to $702.2 million, the figure was in line with forecasts. Despite the drop in sales, the company's profitability improved, as highlighted by the strong earnings beat. Additionally, its free cash flow margin increased to 43% from 41% in the same quarter last year, indicating better cash generation from its operations.
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What Is The Market Telling Us
1-800-FLOWERS’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 24 days ago when the stock gained 7% on the news that investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.
1-800-FLOWERS is up 28.6% since the beginning of the year, but at $4.75 per share, it is still trading 47.8% below its 52-week high of $9.09 from February 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $154.41.
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