D.A. Davidson upgraded its rating on 1-800-FLOWERS.COM (NASDAQ:FLWS) to “neutral” from “underperform” following the company’s second quarter results.
The company blamed the “uncertain consumer environment” on poor quarterly results, joining the bandwagon of specialty retailers who said the same for sluggish sales.
For fiscal Q4, the company reported an adjusted loss of $0.34 per share compared to a loss of $0.28 a year ago, on a 9.5% decline in revenue to $360.9M, $13.5M below expectations.
“Given the continuing low consumer sentiment, DADA thinks there’s risk of a further push-out of expected return to positive sales growth. Nevertheless, FLWS confirmed what the Bloomberg debit card data indicate—that the Y/Y sales change is likely to be less negative in FQ125. DADA thinks Street estimates are now adequately de-risked in the near term,” the research firm said in their August 30 commentary.
The research firm cut PT on FLWS to $7 from $8, implying a downside of nearly 12%. Stock is down 26% YTD while the benchmark S&P index is up 17% for the same period.
