#$flws

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$FLWS 2018-08-30 : Transcripts- Edited Transcript of FLWS earnings conference call Get Transcripts on your mobile as soon as they are released. Download the Android App below…

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EARNING UPDATE $FLWS 1-800-FLOWERS.COM, Inc. for quarter ending q_Jun18 - Revenue fell, Margins contracted

EARNING UPDATE $FLWS 1-800-FLOWERS.COM, Inc. for quarter ending q_Jun18 – Revenue fell, Margins contracted

[s2If !current_user_can(access_s2member_level0)]Please login to read the earning update on FLWS [lwa][/s2If][s2If current_user_can(access_s2member_level0)]1-800-FLOWERS.COM, Inc. reported earnings (EPS) of -0.13 per share for the quarter ending q_Jun18. This is vis-vis -0.13 per share for the previous quarter ending q_Mar18, a growth of 0 %. Compared to last year same quarter (q_Jun17), earnings…

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Will Gay Marriage Ruling provide an economic windfall to 1-800-FLOWERS.COM, Inc.? (Stock down 11.7% today)

Each week I trade insights with some of the most influential minds (CEOs, boards, shareholders, and leading journalists) in the e-commerce sector. Here are my thoughts after the earnings call. Find me @AbeGarver

I don’t believe shareholders are going to benefit much at all

In my opinion, it’s safe to assume that the Supreme Court Ruling making same-sex marriage a right nationwide will not provide an economic windfall to 1-800-FLOWERS.COM (NasdaqGS: FLWS) given the company’s announcement today that consolidated revenue growth in Fiscal 2016 will be in the 5%-7% range.

Here is why company’s Fiscal 2016 revenue guidance today was surprising

On the surface the guidance is surprising for two reasons:

(1) Last year FLWS was named to Internet Retailer’s 2015 Top 500 for fast growing e-commerce companies turning in 51.3% growth

(2) in an article last year, the Washington Post estimated that the (Supreme Court) decision could prove to be a $2.6 billion economic windfall for the wedding industry in the next three years when passed across the U.S.

1-800-FLOWERS is not a ‘Pure-play’ beneficiary of the Gay Marriage Ruling

Under the hood however, FLWS primary business (as a result of the Harry & David acquisition last year) is now Gourmet Food and Gift Baskets ($614.0M), followed by Consumer Floral ($422.2M), and Bloom Wire Services ($86.0M). In addition, we know occasions other than weddings (e.g. Mother’s Day, Valentine’s Day) contribute to the Consumer Floral and Bloom Wire Services.  In other words FLWS is not a pure-play.

Here are two companies that could benefit however

If you are trying to profit from the Supreme Court’s gay marriage ruling, BlueNile.com (core business is the engagement category), and XO Group, Inc. (The Knot - the nation’s leading wedding resource) may be more attractive.

If you’re interested in more breaking news about the e-commerce sector including 1-800-FLOWERS, Blue Nile, or XO Group, please follow me on Twitter @AbeGarver

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How to profit from the Supreme Court’s gay marriage ruling

Photo: Jennifer Grove, Founder Repeat Roses 

How to profit?

Marriage is a $51 billion industry. In an article last year, the Washington Post estimated that the decision could prove to be a $2.6 billion economic windfall in the next three years when passed across the U.S.

Flowers are very expensive and they don’t last long. In fact, they are one of the biggest expenses couples frequently budget for. Engagement rings, wedding bands and event venues, also top the list.

Publicly-traded floral, engagement ring, and wedding websites

1-800-Flowers.com (FLWS) is the leading floral and gourmet foods gift retailer in the United States, BlueNile.com (NILE) is world's leading diamond jeweler online, and XO Group Inc. (XOXO) offers wedding resources (e.g. The Knot) through wedding websites and mobile apps.

Should I buy, sell or hold as a reaction to the gay marriage ruling?

1) Pass on 1-800-Flowers.com: On page 3 of its 2014 Annual Report, we learn that 1/3 of the business is gourmet food & gift baskets, and intuitively we know that occasions other than weddings (Mother’s Day, Valentine’s Day) must make up a large part of the rest. Nothing close to pure-play.

At 8.2x EBTIDA, 1-800-Flowers’ valuation could be reasonable if you can stomach its leverage ($135M - material for a company of this size), and integration risks associated with its recent acquisition of Harry & David.

2) Take a close look at BlueNile.com: On page 4 of its 2014 Annual Report Blue Nile says: Our non-engagement product category includes rings, wedding bands, earrings, necklaces, pendants, bracelets, gifts and accessories containing precious metals, diamonds, gemstones, or pearls. Our core business is the engagement category.

At 19.9x EBITDA, Blue Nile’s valuation is double that of 1-800-Flowers. In addition, there is $40M of cash on the company’s balance sheet, and no debt. I remember ordering my wedding band from BlueNile.com a number of years back. I liked the product and was pleased with the service.

3) Take an even closer look at XO Group Inc: The Knot is the flagship brand of XO Group Inc. It is the nation’s leading wedding resource reaching couples through its #1 wedding website and mobile apps, national and local wedding magazines and nationally published books. Based on ComScore data, the Knot Wedding Network Websites generate more unique visitors than the next top three competitors combined.

At 17.7x EBITDA, XOXO’s valuation is on par with Blue Nile’s. In addition there is $83.2M of cash on the company’s balance sheet, and no debt.   

4) Finally, Invest in private companies whose valuations may spike

For example, Repeat Roses headquartered in NYC, collects floral centerpieces and arrangements that otherwise end up in the trash at hotels and special event venues, and “delivers a spot of joy to those who would benefit most in your community (typically our nation’s elderly, abused and sick).”

From a financial perspective the business is intriguing. According to its founder, Jennifer Grove ([email protected]), “Flowers donated by newly married couples to not-for-profit charities via Repeat Roses (Ronald McDonald House) may also create a sizable tax-deduction.” (‘Wedding gift’ from the IRS).

SoulKu.com, headquartered in Lesbian-Friendly Asheville, NC, is well known for creating jewelry and gifts that empower and celebrate women. As a result of the supreme court’s gay marriage ruling the company’s co-founder, Elisa Van Arnam ([email protected]) is raising money to launch several collections targeted at the lesbian wedding market.

Are there more ways to profit?

Yes, just follow me @AbeGarver

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What reddit and Target are saying at the world’s largest e-commerce event (IRCE 2015) today

(Chicago)  E-commerce trailblazers from Target Corp., reddit are ‘Moving the e-Markets’ today, followed by 1-800-Flowers.com and Forrester Research tomorrow at IRCE 2015 (world’s largest e-commerce event).

Reddit’s message: the ‘Front Page of the Internet’ is being used to mobilize for positive change

Now in its 10th year, reddit remains one of the most influential social news web sites and advocates of free speech, thanks to its devoted global community.

Today Alexis Ohanian, co-founder and executive chairman of reddit, traced the beginnings of what has become known as The Front Page of the Internet, how it has evolved and influenced mainstream media and where it is going next.

Personally I have a new appreciation for what it means when “redditors” love a brand (and the consequences when they don’t), and how to interact with the community in ways to benefit your company.

Target’s message: Digital is transforming Target and fueling the future of shopping

Today, Target.com and Mobile president, Jason Goldberger shared lessons learned along the retailer’s digital transformation journey and where it sees e-commerce heading.

With channel-less shopping and personalization becoming the new norm, Goldberger says Target is keenly focused on its digital customer for shoppers both online and in stores.

More than 200 speakers throughout the conference

More than 220 speakers from retail organizations, consumer services providers, technology firms, and more, are discussing a broad range of issues, trends and innovations in e-commerce.

For more breaking news from IRCE 2015

Follow me on Twitter @AbeGarver

IRCE media contact: [email protected]