1-800 FLOWERS Dials Up a Bouquet of Positive Earnings

What is your favorite kind of flower?

Roses

Tulips

Daisies

Orchids

Lillies

Hydrangas

Other

Who needs 'em, they die in a week anyway

Specialty retailer 1-800-FLOWERS said this morning that its first-quarter loss narrowed to $5.79 million, or 9 cents per share, from a year-ago loss of $7.42 million (11 cents per share). This figure matched the consensus analysts' estimate according to Thomson. Earnings before interest, taxes, depreciation and amortization grew 45% to $3.35 million, and revenue was 6.3% higher at $145.8 million.

The firm reiterated its outlook for 2008, as it still expects revenue to grow between 7% and 9% and earnings per share to increase between 30% and 35%.

In late September, I took a look at FLWS as part of my undiscovered gem series. Since then, the stock has gained almost 11% including a 3% jump today. This afternoon's move has taken the shares back above their 10-day moving average and near all-time high territory. Short interest remains a factor in the equity, accounting for almost 12% of the stock's float. The short-interest ratio on FLWS weighs in at nearly 10 days to cover, providing a nice foundation for a short-covering rally.