XO Group Inc (XOXO), Signet Jewelers Ltd. (SIG), 1-800-FLOWERS.COM, Inc. (FLWS): Wedding Stocks May Benefit from Same-Sex Wedding Ruling

More weddings mean more flowers

Florists are already poised to gain from an increase in wedding business, but the industry isn’t without controversy. The Washington state attorney general’s office is suing a florist in the state who refused to provide flowers for a same-sex wedding. The shop owner cited her religious beliefs as her reason for the refusal.

National floral retailer 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) may find itself in a similar dilemma, as it uses a network of florists throughout the country to fill customer orders. The company offers a section dedicated to floral arrangements for weddings on its Wedding Collection page, with local florists often bringing flowers to the wedding venue.  That means there may be more cases of refusal in the coming months.

1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) recently announced an increase in revenue of 7.2% in its most recent quarter, thanks largely to an 11% increase due to Valentine’s Day. But as the June wedding season comes to a close, the company will continue to focus on its line of unique gifts.

For 2013, 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) expects revenue growth to be in the mid-single-digit range, with double-digit year-over-year increases in EBITDA and EPS. The company expects to generate cash flow of more than $20 million.

Targeted Marketing

Of the three companies, only XO Group Inc (NYSE:XOXO) has made a deliberate effort to reach out to same-sex couples. By continuing to create content specifically for this new segment, XO Group Inc (NYSE:XOXO) should see increased ad revenue. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) and Signet Jewelers Ltd. (NYSE:SIG) may also choose to shift their focus to same-sex couples, but neither company needs to work overtime to create products for same-sex weddings. Chances are, wedding-related companies of all types will see a pop in business as gay couples are given the chance to get married.

The article Wedding Stocks May Benefit from Same-Sex Wedding Ruling originally appeared on Fool.com and is written by Stephanie Faris.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.