Stock Watch: 1-800Flowers Gains on Expanded AOL Alliance

1-800-Flowers.com (Nasdaq: FLWS) rose 15/16 to 5 7/16 Friday after the company announced an expanded agreement with America Online (NYSE: AOL). Under the new agreement, the Westbury, New York-based flower seller continues as the exclusive marketer of fresh-cut flowers for six AOL properties through 2005, two years longer than the companies’ original pact.

1-800-Flowers.com will also see increased promotion across other AOL properties. In return, the flower company will promote AOL in its marketing campaigns. The new contract, the company said, provides “significant cost savings” and improves the chances for returning to positive earnings before taxes and items in the fourth quarter of fiscal 2001.

“AOL is clearly one of the most effective partners we have, and we are extremely pleased to be able to cost effectively extend our relationship and enhance it with increased promotions that we believe will drive more traffic to our Web site,” said 1-800-Flowers.com chief executive Jim McCann.

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