- Wednesday, October 16, 2024
Shares of gifts provider 1-800-Flowers.com experienced a significant rise of 14% to $7.97 on Thursday following the company's announcement of improved gross profit margins in the latest quarter. Executives of the Jericho, N.Y.-based company are optimistic about further margin growth.
Despite a year-to-date decline of 17%, this increase marks the largest one-day percentage growth since Feb. 2. In the second quarter, 1-800-Flowers.com witnessed consecutive improvements in their gross profit margin, leading to a 340 basis points increase, reaching 37.1%, compared to 33.7% the previous year. The company anticipates its gross margin to continue to rise, eventually returning to historical levels in the low 40% range.
The surge in profit margins can be attributed to factors such as ocean freight rates approaching pre-pandemic levels and a decline in commodity costs. Additionally, 1-800-Flowers.com's investments in automation have contributed to increased efficiencies. Chief Executive Jim McCann expressed confidence in the company's ability to achieve revenue growth and margin recovery, emphasizing that it's only a matter of time.
Apart from the positive margin development, other fourth-quarter figures indicated an 18% decrease in revenue due to cautious consumer spending. The company also reported a slightly wider loss.
More Posts
All Rights Reserved © 2024
Post a comment