New York – We first recommended 1800 Flowers as a promising investment opportunity in our November 29, 2022 report, when the stock was trading at $8.15. Our thesis was that the stock was being undervalued and that it had great potential for growth. We were correct and believe there is more to come.
Recently, the company reported its Q2 2023 financial results for the period ending January 1, 2023. Total consolidated revenues were $897.9 million, representing a 4.8% decrease from the previous year. Despite this decrease, the gross profit margin improved by 90 basis points to 41.0%. Operating expenses were 28.1% of total sales, a slight increase from the prior year. The company’s net income for the quarter was $82.5 million, or $1.27 per diluted share, compared to $88.5 million in the prior year. The company’s adjusted EBITDA was $131.4 million, compared to $133.1 million in the prior year period.
As a result of these strong financial results and our updated outlook for the company, 1800 Flowers’ stock has risen by 36% since our initial report, now trading at around $11.14. We believe that the stock still has a lot of upside potential, with a 52-week high of $16.65 in sight. With the upcoming Valentine’s Day and Mother’s Day holidays, we believe that consumers will be in spending mode, due to the recent decrease in fuel prices.
We believe that 1800 Flowers is well-positioned to recover from the negative impact of inflation, increased labor costs, and a decrease in consumer spending. We expect the company to see growth during the upcoming holiday season, and believe that the stock has the potential to grow from its current levels.
In conclusion, we continue to be bullish on 1800 Flowers and recommend that investors consider adding it to their portfolios.
Editors Note: The original research post can be found at this link https://theadviser.com/trusted-buyside-stock-research/is-1-800-flowers-nasdaq-flws-a-gift/
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