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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Unpacking Q3 Earnings: 1-800-FLOWERS (NASDAQ:FLWS) In The Context Of Other Specialized Consumer Services Stocks

FLWS Cover Image

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including 1-800-FLOWERS (NASDAQ: FLWS) and its peers.

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 11 specialized consumer services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2% below.

Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results.

Slowest Q3: 1-800-FLOWERS (NASDAQ: FLWS)

Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $242.1 million, down 10% year on year. This print fell short of analysts’ expectations by 1.6%. Overall, it was a mixed quarter for the company with full-year EBITDA guidance topping analysts’ expectations.

“Our first quarter performance generally came in-line with our expectations, as we began to see a slight improvement in our e-commerce revenue trends during the quarter, our gross profit margin continued to grow, and we reduced expenses as a result of our Work Smarter initiatives to operate more efficiently,” said Jim McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM,

1-800-FLOWERS Total Revenue

Interestingly, the stock is up 9.4% since reporting and currently trades at $8.74.

Read our full report on 1-800-FLOWERS here, it’s free.

Best Q3: Matthews (NASDAQ: MATW)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $446.7 million, down 7% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Matthews Total Revenue

The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $28.86.

Is now the time to buy Matthews? Access our full analysis of the earnings results here, it’s free.

LKQ (NASDAQ: LKQ)

A global distributor of vehicle parts and accessories, LKQ (NASDAQ: LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.

LKQ reported revenues of $3.58 billion, flat year on year, falling short of analysts’ expectations by 1.9%. It was a mixed quarter as it posted a decent beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.

LKQ delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.5% since the results and currently trades at $38.34.

Read our full analysis of LKQ’s results here.

Service International (NYSE: SCI)

Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.

Service International reported revenues of $1.01 billion, up 1.2% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ estimates of funeral services performed.

The stock is up 8.9% since reporting and currently trades at $82.89.

Read our full, actionable report on Service International here, it’s free.

Pool (NASDAQ: POOL)

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $1.43 billion, down 2.8% year on year. This number surpassed analysts’ expectations by 2.1%. It was a satisfactory quarter as it also recorded a solid beat of analysts’ organic revenue estimates.

The stock is up 2.6% since reporting and currently trades at $360.03.

Read our full, actionable report on Pool here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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