| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 57.27 | 963 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 4.32 | -20 |
| Graham Formula | 0.06 | -99 |
1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) is a leading e-commerce retailer specializing in floral arrangements, gourmet foods, and personalized gifts for various occasions. Operating under well-known brands such as 1-800-Flowers.com, Harry & David, and Shari's Berries, the company serves customers across the U.S. and internationally. Its business is segmented into Consumer Floral & Gifts, Gourmet Foods & Gift Baskets, and BloomNet, a floral wire service for professional florists. With a strong digital-first approach, FLWS leverages its multi-brand strategy to capture diverse consumer preferences in the $200B+ U.S. gifting market. Despite macroeconomic headwinds, the company maintains a loyal customer base through subscription models and same-day delivery partnerships. Founded in 1976 and headquartered in New York, FLWS continues to innovate in the competitive specialty retail sector with its vertically integrated supply chain and AI-driven personalization tools.
1-800-FLOWERS.COM presents a high-risk, high-reward proposition with its cyclical exposure to discretionary gifting spend. While the company benefits from strong brand recognition (top-of-mind for 42% of U.S. floral shoppers per IBISWorld) and a capital-light e-commerce model, FY2024 challenges include inflationary pressure on floral procurement costs and a leveraged balance sheet (debt-to-EBITDA of 3.2x). The stock's high beta (1.59) reflects sensitivity to consumer sentiment, though potential catalysts include margin expansion from private-label gourmet sales (35% of revenue) and BloomNet's B2B growth. With no dividend and inconsistent profitability (negative EPS in 2023), FLWS suits growth investors betting on omnichannel execution in the fragmented $18B U.S. floral market.
FLWS competes through vertical integration - controlling supply from farms to last-mile delivery - which enables quality control and 98% on-time delivery rates. Its BloomNet segment provides a defensible moat by connecting 11,000+ florists to a proprietary order management system, creating B2B stickiness. However, the company faces intense competition from Amazon's floral marketplace (price leadership) and Instacart's same-day capabilities. FLWS differentiates through occasion-based personalization (birthdays account for 31% of sales vs. 19% industry average) and its multi-brand portfolio that reduces reliance on any single product category. A key vulnerability is the 58% revenue concentration in Q4 (holiday season), making performance highly weather-dependent. The company's tech investments (AI recommendation engines, AR bouquet previews) outpace traditional florists but lag pure-play e-gift retailers in checkout conversion rates. Geographic diversification remains limited with 89% U.S. revenue exposure.