FLWS Q4 Deep Dive: Cost Discipline, Organizational Shift, and Marketing Strategy Shape Outlook

What Happened?

Shares of e-commerce florist and gift retailer 1-800-FLOWERS jumped 18.6% in the afternoon session after the company reported fourth-quarter results that featured a significant beat on profit, even as revenue declined year on year. 

The floral and gift retailer posted adjusted earnings of $1.20 per share, well above the consensus estimate of $0.86. While total revenue fell 9.5% year on year to $702.2 million, the figure was in line with forecasts. Despite the drop in sales, the company's profitability improved, as highlighted by the strong earnings beat. Additionally, its free cash flow margin increased to 43% from 41% in the same quarter last year, indicating better cash generation from its operations.

What Is The Market Telling Us

1-800-FLOWERS’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 24 days ago when the stock gained 7% on the news that investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.

1-800-FLOWERS is up 28.6% since the beginning of the year, but at $4.75 per share, it is still trading 47.8% below its 52-week high of $9.09 from February 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $154.41.

E-commerce florist and gift retailer 1-800-FLOWERS met Wall Streets revenue expectations in Q4 CY2025, but sales fell by 9.5% year on year to $702.2 million. Its non-GAAP profit of $1.20 per share was 39.5% above analysts’ consensus estimates.

1-800-FLOWERS (FLWS) Q4 CY2025 Highlights:

• Revenue: $702.2 million vs analyst estimates of $700.6 million (9.5% year-on-year decline, in line)
• Adjusted EPS: $1.20 vs analyst estimates of $0.86 (39.5% beat)
• Adjusted EBITDA: $98.12 million vs analyst estimates of $96.85 million (14% margin, 1.3% beat)
• Operating Margin: 10.6%, down from 11.7% in the same quarter last year
• Free Cash Flow Margin: 43%, up from 41% in the same quarter last year
• Market Capitalization: $257.2 million

“Our teams remained focused on executing against our key strategic priorities throughout the holiday period, which continues to reflect the early stages of our broader transformation,” said Adolfo Villagomez, Chief Executive Officer.

Company Overview

Founded in 1976, 1-800-FLOWERS is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. 1-800-FLOWERS’s demand was weak over the last five years as its sales fell at a 3.1% annual rate. This wasn’t a great result and is a sign of poor business quality.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. 1-800-FLOWERS’s recent performance shows its demand remained suppressed as its revenue has declined by 8.8% annually over the last two years.

This quarter, 1-800-FLOWERS reported a rather uninspiring 9.5% year-on-year revenue decline to $702.2 million of revenue, in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

1-800-FLOWERS’s operating margin has been trending down over the last 12 months and averaged negative 2.4% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they’re spending loads of money to stay relevant, an unsustainable practice.

In Q4, 1-800-FLOWERS generated an operating margin profit margin of 10.6%, down 1.2 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for 1-800-FLOWERS, its EPS declined by 21.1% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

In Q4, 1-800-FLOWERS reported adjusted EPS of $1.20, up from $1 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects 1-800-FLOWERS to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.03 will advance to negative $0.37.

Key Takeaways from 1-800-FLOWERS’s Q4 Results

It was good to see 1-800-FLOWERS beat analysts’ EPS expectations this quarter. Free cash flow margin was strong and improved from the same period last year. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 5.8% to $4.28 immediately after reporting.

1-800-FLOWERS put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including ADT and its peers.

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 11 specialized consumer services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

ADT

Founded in 1874 and headquartered in Boca Raton, Florida, ADT is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

ADT reported revenues of $1.30 billion, up 4.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ customers estimates.

“ADT again delivered solid revenue growth, robust cash flow, and very strong earnings per share in the third quarter, reflecting the resilience of our business model and our team’s execution of our strategy,” said ADT Chairman, President and CEO, Jim DeVries.

ADT delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.3% since reporting and currently trades at $8.24.

Read our full report on ADT here, it’s free.

Best Q3: Matthews

Originally a death care company, Matthews International is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $318.8 million, down 28.6% year on year, outperforming analysts’ expectations by 9.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Matthews achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11% since reporting. It currently trades at $27.36.

Slowest Q3: 1-800-FLOWERS

Founded in 1976, 1-800-FLOWERS is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

1-800-FLOWERS delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 34.5% since the results and currently trades at $4.70.

Read our full analysis of 1-800-FLOWERS’s results here.

Carriage Services

Established in 1991, Carriage Services is a provider of funeral and cemetery services in the United States.

Carriage Services reported revenues of $102.7 million, up 2% year on year. This print topped analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

The stock is flat since reporting and currently trades at $43.98.

Read our full, actionable report on Carriage Services here, it’s free.

Service International

Founded in 1962, Service International is a leading provider of death care products and services in North America.

Service International reported revenues of $1.06 billion, up 4.4% year on year. This number beat analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced a decent beat of analysts’ revenue estimates but a miss of analysts’ Funeral revenue estimates.

The stock is up 4.9% since reporting and currently trades at $84.

Read our full, actionable report on Service International here, it’s free.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialized consumer services industry, including Service International and its peers.

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 11 specialized consumer services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Service International

Founded in 1962, Service International is a leading provider of death care products and services in North America.

Service International reported revenues of $1.06 billion, up 4.4% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ revenue estimates but a miss of analysts’ Funeral revenue estimates.

Interestingly, the stock is up 4.9% since reporting and currently trades at $84.

Best Q3: Matthews

Originally a death care company, Matthews International is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $318.8 million, down 28.6% year on year, outperforming analysts’ expectations by 9.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Matthews pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11% since reporting. It currently trades at $27.36.

Slowest Q3: 1-800-FLOWERS

Founded in 1976, 1-800-FLOWERS is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

1-800-FLOWERS delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 34.5% since the results and currently trades at $4.70.

Read our full analysis of 1-800-FLOWERS’s results here.

H&R Block

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

H&R Block reported revenues of $203.6 million, up 5% year on year. This number topped analysts’ expectations by 1.5%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

H&R Block scored the highest full-year guidance raise among its peers. The stock is down 18.3% since reporting and currently trades at $42.05.

Read our full, actionable report on H&R Block here, it’s free.

WeightWatchers

Known by many for its old cable television commercials, WeightWatchers is a wellness company offering a range of products and services promoting weight loss and healthy habits.

WeightWatchers reported revenues of $172.1 million, down 10.8% year on year. This result beat analysts’ expectations by 6.6%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 27.8% since reporting and currently trades at $23.98.

Read our full, actionable report on WeightWatchers here, it’s free.

What Happened?

Shares of e-commerce florist and gift retailer 1-800-FLOWERS jumped 7% in the afternoon session after investors wagered geopolitical tension would be contained following the U.S. military's operation in Venezuela, with the Dow hitting a fresh record. 

Sentiment remained firmly "risk-on" for early 2026, with Wall Street prioritizing domestic economic strength over foreign turbulence. Analysts noted that while the event raises short-term supply questions, the market largely viewed the potential stabilization of Venezuela's vast oil reserves as a long-term economic positive.

The shares closed the day at $3.94, up 6.8% from previous close.

What Is The Market Telling Us

1-800-FLOWERS’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 25 days ago when the stock dropped 8.1% on the news that investors took profits following a significant rally driven by news of a key executive appointment. 

The stock had previously soared after the company announced it appointed an executive to support its transformation and artificial intelligence adoption. That news had been welcomed by investors, leading to a sharp run-up in the share price. The subsequent decline appeared to be a technical correction as some market participants cashed in on the recent gains.

1-800-FLOWERS is up 8.5% since the beginning of the year, but at $4.00 per share, it is still trading 56% below its 52-week high of $9.09 from February 2025. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $145.39.