1-800-Flowers Analyst Warns Bloomberg Debit Card Data Shows Unfavorable Trends

1-800-Flowers.Com Inc FLWS stock closed Wednesday at $10.00 per share, down more than 9%.

The company could miss the sales estimate for the fourth quarter of fiscal 2024 and issue its fiscal 2025 guidance below Street expectations, according to DA Davidson.

The 1-800-Flowers Analyst: Linda Bolton Weiser downgraded coverage of 1-800-Flowers from Neutral to Underperform, while reducing the price target from $11 to $8.

The 1-800-Flowers Thesis: Bloomberg debit card data, which is 94% correlated to sales, indicates a decline of 15% year-on-year in sales in the fourth quarter of fiscal 2024, versus a 13% decline in the prior quarter F3Q24, Weiser said in the downgrade note.

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This suggests that the consensus estimate of a 6% year-on-year decline in the fiscal fourth-quarter sales may prove to be too high, she added.

The University of Michigan consumer sentiment index, which is currently in the 60s-70s, needs to be consistently above 80 for 1-800-Flowers to return to low-single-digit sales growth, the analyst added.

"Consumers have tended to show up more on the big gift-giving holidays like Mother’s Day, but FLWS’ everyday gifting business (which is the majority of sales) has been very anemic," she further wrote.

FLWS Price Action: Shares of 1-800-Flowershad declined by 9.09% to $10.00 at the time of publication on Wednesday.

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