1-800-Flowers (FLWS) Announces Fiscal Year 3Q 2022 Results
Chris McCann, CEO, 1-800-Flowers
Scott Mlyn | CNBC
Valentine’s Day wasn’t enough for 1-800-Flowers last quarter.
The company’s shares fell 15% on Thursday to hit a new 52-week low of $9.13 after the online retailer reported third-quarter financial results below analysts’ expectations and downgraded its full-year guidance amid higher inflation and lower demand for some of their products. the gifts.
Chief Executive Officer Chris McCann said robust demand ahead of Valentine’s Day was offset by “generally slower consumer demand for everyday gifts” during the three-month period ending March 27.
1-800-Flowers also continued, and in some cases escalated, macro headwinds, he said.
This was coupled with lower consumer demand “reflecting growing consumer concerns about rapidly rising inflation and geopolitical unrest,” McCann said. The war in Ukraine, triggered by the Russian invasion at the end of February, has caused massive economic upheaval.
The CEO said in a press release that he sees cost issues that will continue for the foreseeable future.
1-800-Flowers, which also owns Harry & David, Shari’s Berries and PersonalizationMall.com, cited an increase in labor, shipping and marketing costs.
The company reported a third fiscal quarter net loss of $23.4 million, or 36 cents per share, compared to a net income of $1.4 million, or 2 cents per share, a year earlier. Excluding one-time shares, it lost 32 cents per share, more than the 28 cent loss analysts polled by Refinitiv had expected.
Revenue of $469.6 million was down 1% year-over-year. This is less than the $486.9 million that analysts were counting on.
For fiscal year 2022, the company is forecasting revenue growth of 3% to 5%, less than the 6.7% growth expected by analysts. The company called for revenue growth of 7-9% in fiscal 2022.
As of Thursday’s market close, the company’s market capitalization is $674.5 million. Shares are down 55% since the start of the year.
“The current macro economy is highly unpredictable, with rising inflation and other factors impacting both costs and consumer demand,” McCann said. “However, it is important to note that we have faced difficult macro market conditions in the past and… we have become a bigger, better and stronger company.”