JERICHO, N.Y. - 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) has announced a change in its executive team with the appointment of James Langrock as Chief Financial Officer, effective December 29, 2024. Langrock will be taking over from Bill Shea, who has decided to retire on the same date after three decades of service.
Jim McCann, Chairman and Chief Executive Officer of 1-800-FLOWERS.COM, expressed his gratitude to Shea for his dedication and significant contributions during a period of substantial growth for the company. He also welcomed Langrock, noting his extensive financial expertise and the value he has already brought to the team since joining in April as Chief Administrative Officer.
Before his tenure at 1-800-FLOWERS.COM, Langrock served as CFO at several organizations, including Charcuterie Artisans, The Hain Celestial (NASDAQ:HAIN) Group, and Monster Worldwide, Inc., bringing a wealth of experience to his new role.
1-800-FLOWERS.COM, a leading gift provider, operates a family of brands that includes numerous well-known names such as Harry & David and Shari's Berries. The company also manages BloomNet, a service provider for the floral and gift industry, and has been recognized for its trustworthiness and rapid growth.
The information for this leadership transition is based on a press release statement from 1-800-FLOWERS.COM. The company has cautioned that forward-looking statements in the press release are subject to risks, uncertainties, and other factors that could cause actual outcomes to differ from those expressed or implied. These statements include projections about the company's performance and strategic initiatives.
Shares of 1-800-FLOWERS.COM are publicly traded on the NASDAQ Global Select Market under the ticker symbol FLWS.
In other recent news, 1-800-FLOWERS.COM has experienced a decline in sales, leading DA Davidson to maintain its underperform rating on the company. The firm's position is based on data indicating a steeper than expected drop in sales in both the fourth fiscal quarter of 2024 and the first fiscal quarter of 2025. These figures have influenced analysts to anticipate a less significant gross margin increase for the fiscal year 2025 compared to the previous year.
Furthermore, DA Davidson voiced concerns that the company's EBITDA guidance might not meet market consensus, which anticipates a 4% year-over-year growth. The firm's $8 price target, based on five times the estimated 2025 EBITDA, is subject to review following the release of the company's financial report.
Despite a 9.1% decline in third-quarter revenue and a net loss of $16.9 million, 1-800-FLOWERS.COM has seen improvements in e-commerce revenue trends and gross margin due to cost optimization and lower commodity costs. In response to the ongoing sales decline, the company has reduced its workforce, expecting to decrease general and administrative expenses by approximately $10 million annually.
Wrapping up the recent developments, 1-800-FLOWERS.COM acquired Card Isle, aiming to enhance its personalized greeting card offerings.
InvestingPro Insights
As 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) welcomes James Langrock as the new Chief Financial Officer, investors and stakeholders are keen to understand the financial health and future outlook of the company. According to InvestingPro data, the company has a market capitalization of $583.67 million, indicating its size and significance in the market. Despite facing a challenging period with a reported revenue decline of 11.19% in the last twelve months as of Q3 2024, the company's gross profit margin remains robust at 39.81%, demonstrating its ability to maintain profitability in its operations.
InvestingPro Tips highlight that while analysts expect a sales decline in the current year, they are optimistic about the company's profitability, predicting that 1-800-FLOWERS.COM will become profitable this year. This outlook is reinforced by the company's valuation, which suggests a strong free cash flow yield, an important indicator of financial health and investment potential. Additionally, with liquid assets exceeding short-term obligations, the company appears well-positioned to manage its financial commitments in the near term.
Investors should note that the stock price movements of 1-800-FLOWERS.COM have been quite volatile, which may impact investment decisions. It's also worth mentioning that the company does not currently pay a dividend to shareholders, a factor that income-focused investors may consider. For those seeking a deeper dive into the company's financials, InvestingPro offers additional tips, with a total of 9 InvestingPro Tips available for 1-800-FLOWERS.COM at https://www.investing.com/pro/FLWS, providing further insights into the company's performance and investment potential.
With the next earnings date set for August 29, 2024, and an InvestingPro Fair Value estimate of $10.87, slightly above the previous close price of $9, the market will be watching closely to see how the new CFO's leadership will steer the company's financial strategies and respond to the evolving challenges and opportunities in the industry.
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