RTTNews | Jan 27, 2022 10:17AM EST

10:16 Thursday, January 27, 2022 (RTTNews.com) - Shares of 1-800-FLOWERS.COM, Inc. (FLWS) tanked nearly 30% on Thursday morning after the gifts retailer's second-quarter profit dropped from last year hurt largely increased shipping and labor costs.

FLWS is currently trading at $14.78, down $6.30 or 29.89%, on the Nasdaq.

Second-quarter profit was $88.5 million or $1.34 per share, down from $113.7 million or $1.71 per share last year, primarily reflecting significant year-over-year cost increases in labor, inbound and outbound shipping, and digital marketing.

Adjusted earnings were $1.34 per share, down from $1.72 per share last year.

Revenues increased 7.5 percent to $943.0 million from $877.3 million in the prior year period. The company achieved revenue growth across its three business segments, including growth of 9.8 percent in its Gourmet Foods and Gift Baskets segment, led by growth of more than 10.0 percent in its Harry & David brand.

Gross margin declined 530 points to 40.1 percent, primarily reflecting increased costs for inbound and outbound shipping and labor. Operating expenses as a percent of total revenues, improved 70 basis points to 27.9 percent of total sales, compared with 28.6 percent of total sales in the prior year period.

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