Breaking News: DA Davidson Maintains Underperform Rating on 1-800-FLOWERS.COM (NASDAQ:FLWS) Ahead of Financial Report Release
DA Davidson has reiterated its underperform rating on 1-800-FLOWERS.COM (NASDAQ:FLWS) with a steady price target of $8.00 in anticipation of the company's upcoming financial report on August 29th. Data from Bloomberg indicates that the company's sales have declined more than expected, with a mid-teens percentage drop in the fourth fiscal quarter of 2024 and a projected 10% decrease in the first fiscal quarter of 2025.
Analysts are concerned that the gross margin increase for fiscal year 2025 may not be as significant as previously estimated, and the EBITDA guidance could fall short of market expectations. DA Davidson's $8 price target is based on five times the calendar year 2025 estimated EBITDA of $106 million and may be subject to review after the financial report release.
Despite recent improvements in e-commerce revenue trends and gross margin due to cost optimization, DA Davidson downgraded shares of 1-800-FLOWERS.COM from Neutral to Underperform. The company's workforce reduction and acquisition of Card Isle are aimed at addressing ongoing challenges.
InvestingPro Insights reveal a market capitalization of approximately $595.23 million for 1-800-FLOWERS.COM, with a reported revenue decline of 11.19% over the last twelve months. While the company faces a challenging sales environment, net income growth is expected this year, potentially signaling a shift in financial performance.
Investors should be aware of the stock's volatility and the potential risks and rewards associated with investing in the company. With the next earnings date approaching, additional InvestingPro Tips can provide valuable guidance for decision-making.
In conclusion, DA Davidson's assessment of 1-800-FLOWERS.COM highlights concerns over sales trends and future performance. Investors should closely monitor the company's financial report and consider the insights provided by InvestingPro to make informed investment decisions.