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Bull of the Day: 1-800-FLOWERS.COM (FLWS)

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1-800-FLOWERS.COM, Inc. (FLWS - Free Report) is perfectly positioned in 2020 as its products are ordered digitally and provide a way for people to connect during the stressful COVID-19 time. This Zacks Rank #1 (Strong Buy) just reaffirmed its full year guidance after seeing strong April momentum. 
 
1-800-FLOWERS.COM is more than just 1-800-Flowers. It is a leading provider of gifts designed to express, connect and celebrate including the brands such as Cheryl's Cookies, Harry & David, Shari's Berries, Moose Munch, The Popcorn Factory, Wolferman's Bakery, Simply Chocolate, 1-8OO-Baskets.com, Goodsey, FruitBouquets.com and Personalization Universe.
 
It also offers steaks and chops through StockYards. 
 
The Celebrations Passport loyalty program offers free standard shipping and no service charge across its portfolio of brands.
 
Another Beat in the Fiscal Third Quarter
 
On Apr 30, 1-800-FLOWERS.COM reported its fiscal third quarter results and beat the Zacks Consensus Estimate by 6 cents. Earnings were a loss of $0.14 versus the consensus of a loss of $0.20. 
 
It was the 8th earnings beat in a row. 
 
Revenue rose 12.2% to $278.8 million from $248.4 million. 
 
It saw revenue increases across all three of its business segments, led by Gourmet Foods and Gift Baskets, which jumped 27.1% to $95.9 million up from $75.4 million a year ago. 
 
The gains were due to growth in the business as well as contributions from the acquisition of Shari's Berries, which was acquired in August 2019. 
 
Consumer Floral, the largest segment, saw revenue rise 5.4% to $152.6 million, up from $144.8 million a year ago. It saw double-digit growth for the Valentine's Day holiday period but it did see a weakness the last 2 weeks of March due to COVID-19.
 
BloomNet Wire Service revenue increased 7.9% to $30.4 million from $28.2 million.
 
Reaffirmed Fiscal 2020 Guidance
 
Despite the weakness it saw in business at the end of March, that turned around in April as demand increased "significantly" to start its fiscal fourth quarter. 
 
Consumers want to connect while sheltering-in-place and to do that they are sending gifts digitally. 
 
1-800-FLOWERS.COM is one of the few businesses that is actually seeing business increase during the COVID-19 months. 
 
It continues to see earnings growth in a range between 15-17% over last year. 
 
Zacks only has one analyst estimate for 1-800-FLOWERS.COM but that analyst is bullish. 
 
The fiscal 2020 Zacks Consensus Estimate has risen to $0.62 from $0.52 over the last week. 1-800-FLOWERS.COM made $0.52 a year ago so that is earnings growth of 19.2%. 
 
Fiscal 2021 is also looking strong with another 14.5% earnings growth expected. 
 
Shares Soar to 5-Year High
 
The Street is loving companies that are doing business digitally in 2020. 
 
1-800-FLOWERS.COM certainly fits into that category. 
 
Shares are up 22% year-to-date to new 5-year highs. 
 
 
They aren't cheap, with a forward P/E of 36.2. 
 
Investors are buying the growth as it doesn't pay a dividend. 
 
But with a strong start to its fiscal fourth quarter, and the re-affirmation of full year guidance, 1-800-FLOWERS.COM is one digital consumer products company to keep on your short list. 
 
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