While the name implies telephone ordering, 1-800-Flowers.com (NASDAQ:FLWS) is without a doubt an e-commerce company. It has strategic online relationships with Facebook (NASDAQ:FB), Twitter, Pinterest, Google (NASDAQ:GOOG), AOL (NYSE:AOL), Yahoo! (NASDAQ:YHOO) and other big names the social media and Internet space.
Just consider this recent headline talking about a massive gift-sending promotion on Facebook that boosted not just the social media giant but related companies like FLWS as a result.
After posting a loss in fiscal 2010, 1-800-Flowers.com has gotten its act together. Quarterly revenue has increased in seven of the past eight quarters, and the stock price has rallied 43% so far in 2012. Most recently revenue was up 3% and margins were up nicely. The company did post a loss, but a smaller one — and a loss is typical for the holiday-free quarter between Valentine’s Day and the winter holidays.
With almost no debt and a profitable operation, this is not your typical down-and-out stock in the bargain bin. Though the market cap is a mere $200 million, 1-800-Flowers.com is a serious company with serious potential.
An added bonus: Since 1-800-Flowers.com does most of its business over Christmas and Valentine’s Day, there is still time for investors to get in before the lion’s share of the profits and sales come in. If consumer spending is really on the mend — and if FLWS has its act together — we could see a strong 12-18 months for this stock.