Company Overview
1-800-FLOWERS.COM, Inc. operates as a specialty retailer providing a comprehensive range of gifts for various occasions within the United States and internationally. The business is structured through three distinct segments: Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet, which collectively offer products such as fresh-cut flowers, floral arrangements, and fruit baskets. This entity functions within the Consumer Cyclical sector under the Specialty Retail industry, positioning it as a provider of discretionary spending goods that are sensitive to economic fluctuations and consumer confidence. The company's scale is defined by a market capitalization of $197.32M, annual revenue of $1.59B, and an employee base of 3900 individuals. These figures indicate that while the company maintains a significant operational footprint with nearly 4,000 employees generating over $1.5 billion in sales, its market valuation reflects a smaller capitalization relative to its revenue base, suggesting a position where revenue generation does not yet fully translate into proportional market equity value.
Financial Health
The company reported a total revenue of $1.59B over the trailing twelve months, yet this revenue generated a net income of $-212,555,008, highlighting a severe cost structure where operating expenses and losses significantly outweighed gross earnings. The reported EBITDA of $-21,624,000 further underscores that the core business operations are currently generating negative cash flows before financing and tax adjustments. Free cash flow stands at $-19,018,000, which indicates a lack of financial flexibility as the company is currently burning cash rather than accumulating reserves for reinvestment or debt repayment. The margin profile reveals a gross margin of 37.6%, an operating margin of 10.8%, and a profit margin of -13.4%; while the gross and operating margins suggest that the company retains a substantial portion of sales revenue before overhead and after operating expenses respectively, the negative profit margin confirms that these retained amounts are insufficient to cover interest and other non-operating costs. In terms of leverage, the company holds $193.34M in cash against $257.73M in total debt, resulting in a debt-to-equity ratio of 88.97, which characterizes the balance sheet as heavily leveraged and reliant on equity to support its debt obligations. Liquidity is assessed via a current ratio of 1.25, indicating that the company possesses slightly more current assets than current liabilities, providing a modest buffer for short-term obligations but not a robust safety net. Return metrics show a return on equity of -54.2% and a return on assets of -4.6%, revealing that management effectiveness is currently negative as the company destroys shareholder value and fails to generate returns on the asset base employed to run the business.
Valuation Assessment
Valuation multiples for the stock present a complex picture due to the negative earnings, with a trailing P/E ratio listed as N/A and a forward P/E of -5.09. The negative forward P/E implies that expected future earnings are not positive enough to support a standard earnings-based valuation, reflecting market expectations of continued earnings contraction or a long path to profitability. The price-to-book ratio is 0.68, indicating that the market values the company at less than its book value, which often suggests that investors perceive the assets as overvalued on paper or that future earnings potential is discounted significantly. Alternative valuation metrics include a price-to-sales ratio of 0.12 and an EV/EBITDA of -12.10, suggesting that the company is valued at a very low multiple of its sales volume, though the negative EV/EBITDA reinforces the challenges associated with negative earnings and cash generation. The stock's price range over the last year has fluctuated between a 52-week low of $2.93 and a 52-week high of $8.44. Without the specific current share price provided in the facts, the relative positioning of the current price cannot be calculated as a percentage of this range, but the wide spread between the high and low demonstrates significant price volatility. The beta value is 1.23, which means the stock is expected to be 23% more volatile than the broader market, indicating higher risk for investors seeking to allocate capital to this asset.
Growth & Income
Growth metrics show a revenue growth year-over-year of -9.5% and an earnings growth year-over-year of 10.0%. The divergence between these figures indicates that while earnings are technically growing, this is occurring in the context of shrinking sales, a scenario often driven by one-time costs or accounting adjustments rather than organic business expansion. Regarding income distribution, the company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. This absence of a dividend payout implies that the company retains all of its earnings, likely due to the need to preserve cash reserves given the negative free cash flow and high debt levels, rather than distributing income to shareholders. Consequently, the overall growth and income profile is characterized by declining top-line sales and a lack of income distribution, with the company currently focused on survival and cost management rather than rewarding shareholders through dividends or consistent revenue expansion.