Flowers (FLO) surged 5.14% during pre-market trading on Friday, as investors reacted positively to the company's announced strategic overhaul.

The floral-and-gift delivery company revealed it is shifting its marketing strategy away from an overreliance on transactional "buying clicks" and towards investing in brand building. This includes increased focus on influencer marketing, platforms like Instagram and TikTok, cutting delivery fees to improve customer experience, and integrating AI into its website sorting and search rankings to help consumers find products faster.

CEO Adolfo Villagomez explained that the previous heavy focus on bottom-of-the-funnel activities to drive immediate transactions did not effectively build the brand or drive customer retention. The new strategy aims to strengthen brand awareness, which is expected to lower customer acquisition costs and improve profitability over time, despite the CEO's note that benefits from such top-of-funnel investments may take time to materialize.