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Benchmark: For First Time In Years, 1-800-Flowers Delivered A 'Complete Holiday Quarter'

Jayson Derrick

1-800-Flowers.Com Inc (NASDAQ: FLWS) reported fiscal second-quarter results which marks the first time in years the company offered investors a "complete holiday quarter," according to Benchmark.

The Analyst

Benchmark's Daniel Kurnos maintains a Buy rating on Flowers.com with a price target lifted from $15 $18.

The Thesis

Flowers.com delivered the exact type of earnings report patient shareholders have been waiting for since 2015, Kurnos said in a research note. The report is highlighted by 8-percent growth in Consumer Floral, a surprising 8-percent increase in Harry & David revenue and 12-percent improvement in new customers.

Encouragingly, the earnings print also showed management's significant investments in Harry & David paid off with tangible results. The analyst said management also deserves credit for better attracting younger and tech-savvy customers.

It's apparent the "flywheel is finally starting to spin" and benefits seen in the reported quarter look to be sustainable. In fact, the company will now face a task of deciding what to do with its large amount of cash on hand. Some of the potential options include acquiring rival FAT Companies Inc (NASDAQ: FTD) if the struggling company puts itself or some of its assets up for sale.

Flowers.com looks to be on track to grow revenue in the 5 percent to 7 percent range and EBITDA by 8 to 12 percent, the analyst said.

Price Action

Shares of 1-800-Flowers.Com were trading higher by 2 percent at $16.25 Friday afternoon.

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Latest Ratings for FLWS

Date Firm Action From To
May 2018 Noble Financial Downgrades Buy Hold
May 2018 DA Davidson Maintains Neutral Neutral
Dec 2017 Northcoast Research Downgrades Buy Neutral

View More Analyst Ratings for FLWS
View the Latest Analyst Ratings

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