1-800-Flowers.com - FLWS August 10th Close:$12.98 Change:+0.22
Company Description:
1-800-flowers.com is the one of the largest multi-channel sellers
of retail flowers in the country. The Westbury, New York-based
firm is best known for its Internet franchise, yet it also has 120
retail outlets in metro New York and Los Angeles, distributes 50
million catalogs a year and operates the 1,500 florist strong
BloomNet network. Although the company still takes more orders by
phone then through the Internet, the web side is growing fast. It
has strategic relationships with AOL, Amazon, Excite and Microsoft
Network. This is clearly not your typical dot-bomb. Although the
company is not profitable, it intends to become so next year. In
the meantime it has a low-cash burn rate and over $82 million in
the bank. Long-term debt is also low at $12.3 million.
Fundamentals:
The company reports its fourth-quarter and fiscal 2001 results on
August 16th. Analysts expect the company to report a quarterly
loss of 4-cents per share on revenue of $135 million. In the same
period last year the company lost 31-cents on revenue of $85
million. For the year, analysts forecast the company will report a
loss of 57-cents per share on sales of $448 million and 23-cents on
sales of $514 million in 2002. For the fiscal year ended June
2000, the company lost $1.10 per share on sales of $385 million.
Why We Like It:
Flowers along with travel are turning into big Web hits. One of
the reasons is that customers were already comfortable with phone
orders and the web was an easy transition. Research firm Jupiter
Media Metrix estimates that $600 million of flowers will be ordered
over the web this year and this number will almost triple to $1.6
billion by 2006. With a solid business model, 1-800-flowers.com
has established itself as the clear Internet leader. In
recognition of the company's prospects and execution, investors
have driven the shares up 471-percent from $2.27 on November 13th.
We have a 12-month price target of $25.
