Core Viewpoint - The article emphasizes the effectiveness of value investing and highlights BuildABear Workshop (BBW) as a strong value stock opportunity based on its financial metrics [1][3]. Company Summary - BuildABear Workshop (BBW) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [2]. - BBW's Forward P/E ratio is 8.68, significantly lower than the industry's average Forward P/E of 16.14, suggesting it may be undervalued [2]. - Over the past year, BBW's Forward P/E has fluctuated between a high of 8.69 and a low of 5.95, with a median of 6.84 [2]. - The company has a P/CF ratio of 7.10, compared to the industry's average P/CF of 19.03, further indicating potential undervaluation [2]. - BBW's P/CF has ranged from a high of 7.10 to a low of 4.66 over the past year, with a median of 5.77 [2]. Investment Outlook - The financial metrics suggest that BuildABear Workshop is likely undervalued, making it an attractive option for value investors [3]. - The strength of BBW's earnings outlook reinforces its position as a compelling value stock at the current time [3].

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Core Viewpoint - The article emphasizes the importance of timing and sustainability in short-term investing, highlighting that a solid trend backed by strong fundamentals can enhance the likelihood of investment success [1]. Group 1: Stock Performance - Build-A-Bear (BBW) has shown a significant price increase of 28.1% over the past 12 weeks, indicating strong investor interest [2]. - In the last four weeks, BBW's price surged by 35.4%, confirming that the upward trend is still intact [2]. - BBW is currently trading at 90.3% of its 52-week high-low range, suggesting it may be on the verge of a breakout [2]. Group 2: Fundamental Strength - BBW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [3]. - The Average Broker Recommendation for BBW is 1 (Strong Buy), indicating strong optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that BBW is not the only stock that meets the criteria of the "Recent Price Strength" screen, encouraging investors to explore other stocks that fit this profile [4]. - The Zacks Premium Screens offer over 45 strategically created options to help investors identify potential winning stocks [4].

Core Viewpoint - Build-A-Bear Workshop experienced significant stock price appreciation due to strong quarterly results, outperforming market expectations for both revenue and profitability [1][2]. Group 1: Financial Performance - Build-A-Bear reported revenue of just under $112 million for the second quarter, reflecting a year-over-year increase of slightly more than 2%, surpassing analyst expectations of around $110 million [2]. - The company's GAAP net income rose by 5% to nearly $8.8 million, equating to $0.64 per share, exceeding the consensus estimate of $0.59 [2]. - A notable contributor to revenue growth was a nearly 45% increase in commercial and international franchise revenue, which amounted to $8.3 million in the second quarter [2]. Group 2: Future Outlook - Management reiterated its guidance for 2024, forecasting mid-single-digit percentage growth in both non-GAAP revenue and pre-tax income, without providing specific figures [3]. - The company anticipates a minimum of 50 new "experience" locations as part of its net new unit growth strategy [3]. - Capital expenditures are projected to be between $18 million and $20 million [3].

Financial Data and Key Metrics Changes - Revenues for Q2 2024 were nearly $112 million, an increase of approximately 2.5% year-over-year, with pretax income exceeding $11 million, representing growth of over 10% [8][24] - Diluted earnings per share increased by 12.3% to $0.64, reflecting growth in pretax income and a reduction in share count [27] - Gross margin improved to 54.2%, an increase of 50 basis points compared to the previous year, primarily due to commercial margin expansion [26] Business Line Data and Key Metrics Changes - Net retail sales were flat at $103.5 million, with a 28.2% decline in web demand offset by growth at existing stores and the addition of new locations [24] - Commercial revenue, which includes wholesale sales to partner operators and international franchise revenue, increased by 44.8% year-over-year [26] Market Data and Key Metrics Changes - Store traffic outpaced national traffic, although it was slightly down for the quarter, with improved store conversion rates [24] - Web demand was significantly impacted by a lighter product launch schedule compared to the previous year, but improvements in SEO and product timing have led to a strong recovery in Q3 [25][46] Company Strategy and Development Direction - The company aims to evolve its business model for sustained profitable growth by expanding its consumer base beyond children, now representing approximately 40% of total retail sales [5][6] - Strategic initiatives include expanding experience locations globally, accelerating digital transformation, and maintaining a fiscal focus to drive profitable growth while returning value to shareholders [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the third quarter's performance, driven by strong Halloween product lines and a robust product launch schedule [28][42] - The company acknowledges external uncertainties, such as consumer sentiment and economic conditions, but remains focused on internal growth strategies [43] Other Important Information - The company has returned over $116 million to shareholders through dividends and stock repurchases over the past year [18][24] - Build-A-Bear was ranked as the Number 1 toy retailer in Newsweek's third annual ranking of America's best retailers [22] Q&A Session Summary Question: Insights on Mini Beans product performance - Management noted that Mini Beans are often purchased as add-ons to larger items, contributing to overall sales growth and improved conversion rates [32][33] Question: International and licensing growth potential - Management highlighted strong international opportunities and positive feedback from partners, with expectations for continued growth in this segment [35][36] Question: Guidance for the back half of the year - Management reiterated that the second half is expected to outperform the first half, driven by new store openings and strong commercial business performance [41][42] Question: Clarification on web demand metrics - Management confirmed that web demand was down 28% in Q2 but has since improved to double-digit growth in Q3, attributed to better SEO and product timing [44][46] Question: New store growth expectations - Management indicated a strong pipeline for new store openings, particularly in partner-operated locations, with a focus on being ready for the holiday season [51][52] Question: Supply chain and inventory management - Management discussed the challenges of replenishing seasonal items but emphasized the importance of evergreen products in maintaining consistent inventory levels [60][61] Question: Opportunities for reinvestment and acquisitions - Management expressed openness to exploring acquisition opportunities that align with their growth strategy, while focusing on asset-light expansion through partner-operated locations [65][67]

wdstock Build-a-Bear Workshop, Inc. (NYSE:BBW), the customizable plush animal seller, reported the company’s fiscal Q2 results on the 29th of August in pre-market hours. The results showed healthy operational improvements from Q1, pushing the growth performance closer to Build-A-Bear’s reaffirmed FY2024 outlook. The good Q2 report has so far sent Built-A-Bear’s stock up aggressively by 19%. In my previous article, “Build-A-Bear Workshop: Upside Still Exists, But Beware Of Long-Term Revenue Declines,” I ...

Build-A-Bear (BBW) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.65 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.54%. A quarter ago, it was expected that this toy retailer would post earnings of $1.02 per share when it actually produced earnings of $0.82, delivering a surprise of -19.61%.Over the last four quarters, the compan ...

Exhibit 99.1 BUILD-A-BEAR WORKSHOP REPORTS SECOND QUARTER AND FIRST HALF FISCAL 2024 RESULTS AND REAFFIRMS ANNUAL GUIDANCE ST. LOUIS, MO (August 29, 2024) – Build-A-Bear Workshop, Inc. (NYSE: BBW) today announced results for the second quarter of fiscal year 2024 ended August 3, 2024. ● Second quarter revenues were $111.8 million, an increase of 2.4%, pre-tax income was $11.5 million, an increase of 10.2%, and diluted earnings per share was $0.64, an increase of 12.3% ● The Company reiterates its fiscal 202 ...

Rising Popularity of the Season Combined with Fan Response to Unauthorized Leak Exposing Exclusive Introductions of Key Licensed Offering, Updated Mini Beans and the Return of Pumpkin Kitty Drive Launch AccelerationST. LOUIS, Aug. 6, 2024 /PRNewswire/ -- Build-A-Bear Workshop, Inc. (NYSE: BBW) is shifting the launch of its highly anticipated Halloween collection earlier date. The action was spurred by a recent unauthorized product leak that ignited a flurry of excitement across social media platforms, with ...

Free Party Package for Birthday Guest of Honor with August-Booked EventST. LOUIS, Aug. 1, 2024 /PRNewswire/ -- Build-A-Bear Workshop, Inc. (NYSE: BBW) is celebrating birthdays with a Birthday Blitz throughout August, the month when the most people are born, according to the U.S. National Center for Health Statistics. For party bookings made in August, the birthday Guest of Honor gets to party for FREE! Book a party for five or more guests during the month of August and the birthday Guest of Honor builds the ...