What Happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) fell 16.3% in the afternoon session after the company reported poor first quarter 2025 results which fell short of Wall Street's estimates across revenue, EPS, and EBITDA. Revenue dropped over 12% compared to the previous year, weighed down by a steep decline in the Gourmet Foods and Gift Baskets segment, where sales fell more than 18%. This slump, along with persistent order system issues and a promotional sales push, dragged down performance across categories. Management also withdrew near-term guidance, citing an unpredictable macro environment. Overall, this was a weaker quarter.
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What The Market Is Telling Us
1-800-FLOWERS’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 29 days ago when the stock dropped 7.4% on the news that stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded markets that the global trade environment remained volatile, limiting the potential for sustained gains.
Also, President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn). For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets.
1-800-FLOWERS is down 36.7% since the beginning of the year, and at $4.95 per share, it is trading 55% below its 52-week high of $11 from July 2024. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $220.96.
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