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The case for 1-800-Flowers.com (NASDAQ:FLWS) rests on a transformation story.
What complicates it is that the unit economics behind that story deteriorated across every major segment in the fiscal fourth quarter: revenue fell 12.9% to $293.1 million, gross margin compressed 80 basis points to 34.7%, and shares dropped 9.3%.
The revenue shortfall against estimates was narrow. Analysts had penciled in $294 million; the company delivered $293.1 million.
The adjusted loss came in at $0.80 per share against an expected $0.69 loss, and adjusted EBITDA landed at a loss of $31 million, wider than the $30.3 million loss the Street had expected.
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