1-800-Flowers Analyst Sees Stock Struggling to Top Spring Rally
Coronavirus lockdowns were a boon to 1-800-Flowers.com as local florists and gift shops in the U.S. shuttered their doors, leading shares in the e-commerce company to a record high in mid-June. But don’t expect that momentum to continue if the recession lingers, said one analyst who has turned bearish on the stock.
D.A. Davidson’s Linda Bolton Weiser said that as e-commerce momentum cools, 1-800-Flowers’ performance could weaken like it did in the 2008-2009 recession, where revenue fell around 10%-12%.
Flowers are “one of the last things people buy in a recession,” Weiser said in an interview this week. Read more…………..
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In 1976, Jim McCann bought a single flower shop in New York City. 42 years later, his company, 1-800-Flowers.com, made $1.2 billion in annual revenue. The company specializes in telephonic and e-commerce gifting retail — flowers, chocolates, gift baskets, and more for holidays like Valentine’s Day and Mother’s Day. Watch this video to see how McCann used technology and product diversity to grow his company from one flower shop to the Amazon of flowers.
