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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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Equity Bottom-Up

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

<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