Benchmark Reiterates Buy on 1-800-FLOWERS.COM Following F4Q13 Revenue Report
In a report published Friday, Benchmark Company analyst Daniel L. Kurnos reiterated a Buy rating and $8.00 price target on 1-800-FLOWERS.COM (NASDAQ: FLWS).
In the report, Benchmark Company noted, “1-800-flowers.com (FLWS-Buy, PT $8) reported F4Q13 (June) revenue of $173 million, down 2.5% y/y, falling short of consensus at $182 million. Revenue growth was negatively impacted by reduced sales of lower margin wholesale products to florists, resulting in a 6% y/y decline in BloomNet revenue, and the Easter shift driving a 16% y/y decline in Gourmet Food & Gift Basket sales (GF&GB). However, EBITDA of $6.3 million came in just below our $7.3 million estimate, highlighting Flowers' strong margin improvement as new product lines scale and marketing dollars become more efficient. EPS of $0.01 was $0.01 above expectations as the remaining $18 million in debt was paid down. We think the stage is set for a strong FY14, with a turnaround plan in place for Fannie May to augment solid core growth, driving mid-single digit total revenue and likely double-digit cash flow growth.”
1-800-FLOWERS.COM closed on Thursday at $5.52.
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