What Happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ: FLWS) jumped 6.7% in the morning session after it reported results for its third calendar quarter of 2025, which included a forward-looking savings plan that investors appeared to focus on.
The gift retailer's revenue fell 11.1% year-on-year to $215.2 million, falling short of analyst forecasts. The company's adjusted loss per share also widened to $0.83, which was a deeper loss than Wall Street had expected. Despite these results, the positive stock reaction suggested investors were encouraged by the company's future strategy. 1-800-Flowers announced it planned to achieve an additional $50 million in gross savings over the next two years. The company's CEO noted that the current fiscal year marked a 'pivotal year of stabilization' aimed at laying the foundation for long-term growth.
After the initial pop the shares cooled down to $3.55, up 1.4% from previous close.
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What Is The Market Telling Us
1-800-FLOWERS’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 13.5% on the news that a major shareholder, Fund 1 Investments, LLC, disclosed the sale of more than four million shares. The sale, valued at nearly $25 million, involved 4,167,833 shares. A large transaction by a ten percent owner can raise concerns among investors about a company's future prospects. The news arrived as the company faced several challenges. Over the previous two years, sales had fallen by 8.6% annually, suggesting consumer trends were not in its favor. The company also showed poor returns on its investments and had an unfavorable cash position, which could lead to actions that might reduce the value of existing shares.
1-800-FLOWERS is down 54.6% since the beginning of the year, and at $3.55 per share, it is trading 61% below its 52-week high of $9.09 from February 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $178.77.
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