Valentine’s Day is known as perhaps one of the most intimate holidays on the calendar but it is one of the most commercial holidays as well. It’s no secret that retailers love this holiday as they get to make a safe and easy bet stocking their shelves with Valentine’s Day goods and seeing this merchandise clear. Leading up to Cupid’s day, we see a flurry of chocolates, roses and jewelry exchanging hands to make this day that more special.
Currently, retailers are expecting the U.S. spending for this holiday to total $26.2 billion, which makes for an average of $130.70 for the 81% of Americans who say they plan to celebrate Valentine’s Day this year.
Of that total spending, researchers at Finder.com estimate that two-thirds of that ($17.3 billion) will be charged to credit cards. Most of that spending will be used to buy gifts for two-legged friends, but 28% of celebrants plan to buy gifts for the dogs and 17% say they’ll buy gifts for the cats. Spending on pets is expected to average $25 for dogs and $21 for cats, for a total of more than $750 million.
Many businesses out there depend on their holiday sales to pull them through, and Valentine’s Day sales are no exception. 24/7 Wall St. has compiled a list of companies that stand to benefit the most from this lovers’ holiday.
American Greetings is one of the nation’s largest greeting card companies. It specializes in a product that roughly half of all consumers are expected to buy for their Valentines. We last reported that American Greetings had revenues of around $1.8 billion annual back in 2013, and this number has not changed much since. The company was acquired on August 7, 2013, by the Weiss family, resulting in American Greetings becoming a privately held company.
Hershey Co. (NYSE: HSY) is one of the biggest chocolate and sugar confectionary products manufacturers. More than half of all consumers will buy candy for Valentine’s Day. Hershey is a manufacturer of a number of well-known chocolate and candy brands, including Hershey’s, Reese’s, Twizzlers and Kit Kat. For Valentine’s Day, Hershey produces heart-shaped boxes in a number of its major brands, as well as heart-shaped versions of its Bliss brand of chocolate. The company had $7.44 billion in revenues for 2016, with a total market of $16.4 billion.
1-800-Flowers.com Inc. (NASDAQ: FLWS) is an online retailer of flowers and gifts. Valentine’s Day is one of the company’s “key floral holidays,” as the company describes it. The company had a problem a couple years ago when it was criticized by many customers who claimed their Valentine’s flowers either did not arrive on time or arrived damaged. Historically, the company actually does more business on Mother’s Day than on Valentine’s Day. The company had total revenues of $1.17 billion in fiscal 2016, and it has a total market cap of $652.8 million.
Known for its blue boxes, Tiffany & Co. (NYSE: TIF) is also associated with silver, engagement ring settings and the film “Breakfast at Tiffany’s.” Although the stock is up 6% so far in 2017, it is still down from its highs in 2014. Valentine’s Day could mark a turning point, with about 20% of American consumers expected to buy jewelry for the holiday, and spending about $4 billion on jewelry alone. The company has a total market cap of $10.2 billion.
Two of L Brands Inc.’s (NYSE: LB) most important brands are Victoria’s Secret, one of the nation’s leading lingerie stores, and Bath & Body Works, a personal care retailer. The company has yet to report its 2016 numbers, but analysts are calling for $12.6 billion in revenues. The total addressable market cap is $16.6 billion.
Church & Dwight Co. Inc. (NYSE: CHD) is a consumer goods producer based in Ewing, New Jersey. In addition to selling household brands such as Oxyclean and Arm & Hammer, the company also manufactures Trojan condoms, the market-leading brand in the United States. The company has ramped up spending around Valentine’s Day in years past, and it seems that this year is no different.
High-end steakhouse operator Del Frisco’s Restaurant Group Inc. (NASDAQ: DFRG) has three key restaurant concepts: Del Frisco’s Double Eagle Steak house, Sullivan’s Steakhouse and Del Frisco’s Grille. It is no secret that most would prefer to treat themselves to an expensive dinner for Valentine’s Day. Analysts are expecting the company to post revenues of $351.46 million for 2016. Currently Del Frisco’s has a total market cap of $401.2 million.