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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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1 800 flowers.com inc cl a / Equity Bottom-Up

<div><ul><li>Transformation is focused on profitability and discipline. </li><li>The company is executing a multi-year turnaround focused on improving operating discipline, restoring profitability, and building a more scalable, data-driven business model following several challenging years.</li><li>Leadership overhaul to support execution. A newly assembled leadership team across marketing and technology reflects a deliberate effort to modernize capabilities, improve customer acquisition and retention, and accelerate decision-making.</li></ul></div>

Transformation is focused on profitability and discipline. The company is executing a multi-year turnaround focused on improving operating discipline, restoring profitability, and building a more scalable, data-driven business model following several challenging years.Leadership overhaul to support execution. A newly assembled leadership team across marketing and technology reflects a deliberate effort to modernize capabilities, improve customer acquisition and retention, and accelerate decision-making.

FLWS: Podcast Recap - Disciplined Transformation Focused on Profitable Growth

<div><ul><li>FLWS reported 2QFY26 adjusted EPS of $1.20 versus $1.08 in 2QFY25, up 11%, and above our estimate of $0.98 and consensus $0.86. </li><li>However, the company reported an unexpected modest tax benefit in the quarter versus the 26.5% tax rate in the year-ago quarter. </li><li>Normalizing for that, pretax income declined 19% to $76.2MM, below our estimate for a 12% decline to $83.2MM, but above consensus of a 34% decline to $62.6MM. </li></ul></div>

FLWS reported 2QFY26 adjusted EPS of $1.20 versus $1.08 in 2QFY25, up 11%, and above our estimate of $0.98 and consensus $0.86. However, the company reported an unexpected modest tax benefit in the quarter versus the 26.5% tax rate in the year-ago quarter. Normalizing for that, pretax income declined 19% to $76.2MM, below our estimate for a 12% decline to $83.2MM, but above consensus of a 34% decline to $62.6MM. 

FLWS: Turnaround Strategy Shows Early Progress Despite Continued Revenue and Cost Pressures

<div><ul><li>As we head into 2026, we thought we would look back at how important the year 2025 was for FLWS.</li><li>CY25 marked a watershed transformation for FLWS as founder Jim McCann stepped aside as CEO after nearly 50 years of family leadership, handing the reins to Adolfo Villagomez in May.</li><li>This is the first time someone outside the McCann family has led the company, signaling a fundamental shift from founder-led management to professional operational discipline.</li></ul></div>

As we head into 2026, we thought we would look back at how important the year 2025 was for FLWS.CY25 marked a watershed transformation for FLWS as founder Jim McCann stepped aside as CEO after nearly 50 years of family leadership, handing the reins to Adolfo Villagomez in May.This is the first time someone outside the McCann family has led the company, signaling a fundamental shift from founder-led management to professional operational discipline.

FLWS: 2025 a Watershed Year; Outside Professional Management Takes the Helm

<ul><li>FLWS reported 1QFY26 adjusted EPS of ($0.83) versus ($0.51) in 1QFY25, and below our ($0.50) estimate and FactSet consensus of ($0.59).</li><li>Sales in the quarter decreased 11.1% to $215.2MM, below our $219.6MM estimate and consensus of $218.4MM.</li><li>However, management indicated that $3-4MM of wholesale sales that were shipped in the September quarter a year ago shifted to the December quarter this year, so excluding that shift, sales were about as expected. </li></ul>

FLWS reported 1QFY26 adjusted EPS of ($0.83) versus ($0.51) in 1QFY25, and below our ($0.50) estimate and FactSet consensus of ($0.59).Sales in the quarter decreased 11.1% to $215.2MM, below our $219.6MM estimate and consensus of $218.4MM.However, management indicated that $3-4MM of wholesale sales that were shipped in the September quarter a year ago shifted to the December quarter this year, so excluding that shift, sales were about as expected. 

FLWS: 1QFY26 Sales and EPS Below Expectations; Reducing Estimates

<div><ul><li style="list-style-type: square;">President Trump recently threatened new tariffs on Colombia and announced he would cut aid to the country, amid escalating tensions between the two governments over drug trafficking issues. </li><li style="list-style-type: square;">Negotiations are ongoing, including the possible exemptions of key Colombian exports such as coffee and certain fruits, along with cut flowers.</li><li style="list-style-type: square;">Colombia currently faces a 10% baseline tariff that was imposed on April 2, 2025, as part of Trump’s broader global tariff package affecting multiple countries.</li></ul></div>

President Trump recently threatened new tariffs on Colombia and announced he would cut aid to the country, amid escalating tensions between the two governments over drug trafficking issues. Negotiations are ongoing, including the possible exemptions of key Colombian exports such as coffee and certain fruits, along with cut flowers.Colombia currently faces a 10% baseline tariff that was imposed on April 2, 2025, as part of Trump’s broader global tariff package affecting multiple countries.

1-800-Flowers.com, Inc: Colombia Tariffs Would Severely Affect Imported Cut Flowers Industry

United States

1-800-FLOWERS.COM, Inc. is an e-commerce provider of floral products and gifts. The Company's product offerings, including fresh-cut and seasonal flowers, plants, floral arrangements, and home and garden merchandise, can be purchased online or by calling its toll-free telephone number.

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1 800 flowers.com inc cl a (FLWS US)

FLWS: Podcast Recap - Disciplined Transformation Focused on Profitable Growth

The company is executing a multi-year turnaround focused on improving operating discipline, restoring profitability, and building a more scalable,...

Water Tower Research

FLWS: Turnaround Strategy Shows Early Progress Despite Continued Revenue and Cost Pressures

FLWS reported 2QFY26 adjusted EPS of $1.20 versus $1.08 in 2QFY25, up 11%, and above our estimate of $0.98 and consensus $0.86.

Water Tower Research

FLWS: 2025 a Watershed Year; Outside Professional Management Takes the Helm

CY25 marked a watershed transformation for FLWS as founder Jim McCann stepped aside as CEO after nearly 50 years of family leadership, handing the...

Water Tower Research

FLWS: 1QFY26 Sales and EPS Below Expectations; Reducing Estimates

FLWS reported 1QFY26 adjusted EPS of ($0.83) versus ($0.51) in 1QFY25, and below our ($0.50) estimate and FactSet consensus of ($0.59).

Water Tower Research

1-800-Flowers.com, Inc: Colombia Tariffs Would Severely Affect Imported Cut Flowers Industry

Colombia currently faces a 10% baseline tariff that was imposed on April 2, 2025, as part of Trump’s broader global tariff package affecting...

Water Tower Research

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