UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended October 28, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-32320 BUILD-A-BEAR WORKSHOP, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 43-1883836 (State or Other Ju ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q3 2023 Results Conference Call November 30, 2023 9:00 AM ET Company Participants Gary Schnierow - IR Sharon Price John - CEO Voin Todorovic - CFO Conference Call Participants Michael Baker - D.A. Davidson Greg Gibas - Northland Securities Steve Silver - Argus Research Nancy Frohna - 1492 Capital Management Zach Miller - Yost Capital Michael Baker - D.A. Davidson Operator Greetings, and welcome to the Build-A-Bear Workshop Third Quarter 2023 Earnings Call [Operator Ins ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended July 29, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-32320 BUILD-A-BEAR WORKSHOP, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 43-1883836 (State or O ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q2 2023 Results Conference Call August 24, 2023 9:00 AM ET Company Participants Gary Schnierow - VP, IR & Corporate Finance Sharon Price John - CEO Voin Todorovic - CFO Conference Call Participants Eric Beder - SCC Research Steve Silver - Argus Research Operator Greetings, and welcome to the Build-A-Bear Workshop Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce y ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 29, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 001-32320 BUILD-A-BEAR WORKSHOP, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 43-1883836 (State or ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q1 2023 Earnings Conference Call May 25, 2023 9:00 AM ET Company Participants Gary Schnierow – VP, IR and Corporate Finance Sharon Price John – President and CEO Voin Todorovic – CFO Conference Call Participants Steven Silver - Argus Research Gary Schnierow - Riverpark Capital Operator Greetings, and welcome to the Build-A-Bear Workshop’s First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer s ...

Financial Performance - Total revenues and profit continued to grow in fiscal 2022 compared to fiscal 2021, driven by initiatives and investments made prior to and during the pandemic [17]. - E-commerce sales increased by 137% in Q4 fiscal 2022 compared to Q4 fiscal 2019, reflecting the impact of key digital initiatives [17]. - A special dividend was announced on March 8, 2023, payable to all common stockholders as of March 23, 2023, reflecting confidence in the company's strategy [19]. Inventory Management - As of January 28, 2023, inventory balance was $70.5 million, a decrease of $1.3 million compared to January 29, 2022, indicating effective inventory management [23]. Retail Expansion - Over 20 new Build-A-Bear Workshop retail experience locations were opened in fiscal 2022, with plans for a net increase in North America in fiscal 2023 [18]. - Approximately 35% of total retail locations are now in non-traditional settings, such as family-centric tourist and hospitality sites [18]. Expense Management - The company plans to maintain disciplined expense management amid inflationary pressures and supply chain challenges [19]. Employment - The company employs approximately 1,000 full-time and 3,200 regular part-time employees across the U.S., Canada, the U.K., and Ireland as of January 28, 2023 [28]. Strategic Partnerships - Strategic relationships with brands like Disney and Pokémon are leveraged for marketing and merchandising opportunities, enhancing brand reach [32]. Internal Control over Financial Reporting - The Company conducted an evaluation of its internal control over financial reporting as of January 28, 2023, and concluded that it is effective [186]. - Ernst & Young LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of January 28, 2023 [186]. - There were no changes in the internal control over financial reporting during the year that materially affected its effectiveness [187]. - The internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting, but it has inherent limitations [193]. - The Company maintained effective internal control over financial reporting based on the COSO criteria [189]. - The management's evaluation of internal control included assessing the risk of material weakness and testing the design and operating effectiveness of controls [192]. - The Company’s internal control over financial reporting includes policies and procedures for maintaining accurate records and preventing unauthorized asset acquisition [193]. - The audit conducted by Ernst & Young LLP included understanding internal control, assessing risks, and evaluating the effectiveness of controls [192]. - The management's report on internal control over financial reporting is based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission [186]. - The Company acknowledges that internal controls may not prevent or detect all misstatements due to their inherent limitations [194].

Financial Data and Key Metrics Changes - Total revenues for fiscal 2022 were $468 million, a 14% increase over fiscal 2021, with pretax income rising by 22% to $62 million, marking the most profitable year in the company's history [5][6][30] - In Q4 2022, total revenues reached $145.1 million, an 11.6% increase compared to $130 million in Q4 2021, with net retail sales increasing by 10% to $138.2 million [30][31] - Gross profit margin improved to 55%, up 150 basis points from the previous year, driven by lower freight costs and better leverage of fixed occupancy expenses [31] Business Line Data and Key Metrics Changes - E-commerce sales rose by 0.9% in Q4 2022, showing sequential improvement from Q3 [30][31] - The commercial revenue segment, which includes third-party retail and licensing, increased by over 60% in 2022 compared to the prior year [17] Market Data and Key Metrics Changes - The company reported that approximately 40% of its end users are now teens and adults, expanding its addressable market beyond families with younger children [10][11] - The company opened over 20 new experience locations in 2022, contributing to organic growth from existing locations [15][19] Company Strategy and Development Direction - The company aims to continue its digital transformation, evolve experience location formats, and leverage solid financial management to drive growth and shareholder value [10][11][12] - The strategy includes expanding its licensing portfolio with popular properties and enhancing its omnichannel capabilities to improve customer engagement [24][25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth for 2023, expecting total revenues to increase by 5% to 7% and pretax income to grow by 10% to 15% compared to fiscal 2022 [36][37] - The company is optimistic about the impact of new experience locations and the ongoing recovery of the party business, which is expected to contribute positively to revenue [18][19][58] Other Important Information - The company ended fiscal 2022 with over $42 million in cash and no borrowings on its revolving credit facility, positioning it well for future investments [6][34] - A special cash dividend of $1.50 per share was declared, reflecting the company's commitment to returning value to shareholders [35] Q&A Session Summary Question: Discussion on party business ramp-up - Management noted that the party business started in April of the previous year and has not yet reached its anniversary, indicating potential for further growth [41] Question: Licensing opportunities for children's movies - Management highlighted ongoing relationships with companies expecting to premiere feature films and expressed optimism about cross-promotional opportunities with theaters [44][45] Question: Inventory management amidst licensing growth - Management emphasized the importance of controlling product from inception to sale and diversifying sourcing to manage inventory effectively [50][53] Question: Same-store sales growth expectations - Management indicated that growth in 2023 is expected to come from existing store productivity and new store openings, with a favorable comparison to the previous year [57][58]

87 R স 哈 IGR CONFERENCE 2023 FORWARD LOOKING AND CAUTIONARY STATEMENTS This presentation contains certain statements that are, or may be considered to be, "forward-looking statements" for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "inten ...

[Part I Financial Information](index=4&type=section&id=Part%20I%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$259.8 thousand** as of October 29, 2022, driven by reduced cash, while inventories and stockholders' equity increased Key Balance Sheet Items (in thousands) | Financial Metric | Oct 29, 2022 (Unaudited) | Jan 29, 2022 | Oct 30, 2021 (Unaudited) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $12,023 | $32,845 | $48,501 | | Inventories, net | $88,339 | $71,809 | $61,912 | | Total current assets | $126,635 | $129,998 | $134,387 | | Total Assets | $259,801 | $266,324 | $271,998 | | Total current liabilities | $96,922 | $97,382 | $93,910 | | Total stockholders' equity | $97,098 | $93,683 | $93,064 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Q3 2022 total revenues increased to **$104.5 thousand**, with net income rising to **$7.5 thousand** or **$0.51** per diluted share, reflecting strong year-over-year growth Q3 and YTD Performance Summary (in thousands, except per share data) | Metric | Thirteen Weeks Ended Oct 29, 2022 | Thirteen Weeks Ended Oct 30, 2021 | Thirty-nine Weeks Ended Oct 29, 2022 | Thirty-nine Weeks Ended Oct 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $104,480 | $95,139 | $322,827 | $281,560 | | Consolidated gross profit | $54,330 | $49,614 | $166,069 | $148,442 | | Net income | $7,455 | $5,923 | $27,475 | $23,138 | | Diluted EPS | $0.51 | $0.36 | $1.78 | $1.44 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$11.2 thousand** for the thirty-nine weeks ended October 29, 2022, primarily due to inventory investments and significant share repurchases Cash Flow Summary for Thirty-nine Weeks Ended (in thousands) | Cash Flow Activity | Oct 29, 2022 | Oct 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,247 | $17,235 | | Net cash used in investing activities | ($6,752) | ($4,644) | | Net cash (used in) provided by financing activities | ($26,135) | $924 | | (Decrease) increase in cash | ($20,822) | $13,661 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, segment performance, stock repurchase programs totaling **$75 thousand**, and a credit facility amendment to a SOFR-based interest rate - The Direct-to-Consumer (DTC) segment, including retail stores and e-commerce, is the primary revenue driver, accounting for **95%** of consolidated revenue for the third quarter of fiscal 2022[23](index=23&type=chunk)[69](index=69&type=chunk) Segment Income Before Income Taxes (in thousands) | Segment | Thirteen Weeks Ended Oct 29, 2022 | Thirty-nine Weeks Ended Oct 29, 2022 | | :--- | :--- | :--- | | Direct-to-Consumer | $7,771 | $29,174 | | Commercial | $2,009 | $5,705 | | International Franchising | $108 | $843 | - The company completed a **$25.0 thousand** share buyback program and its Board of Directors authorized a new repurchase program of up to **$50.0 thousand**, effective through August 31, 2025[63](index=63&type=chunk)[64](index=64&type=chunk) - Subsequent to the quarter's end, on November 21, 2022, the company amended its credit agreement to change the interest rate calculation from a LIBOR-based rate to a Secured Overnight Financing Rate (SOFR) based rate[77](index=77&type=chunk)[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 revenue growth driven by North American retail, strategic priorities including digital transformation and retail evolution, and expectations for continued full fiscal year growth despite inflationary pressures [Business Update and Strategy](index=21&type=section&id=Business%20Update%20and%20Strategy) The company's strategy focuses on digital transformation, evolving omnichannel retail, and optimizing financial position, with expansion into non-traditional retail locations and strong e-commerce growth since 2019 - Core strategic priorities are: (1) **accelerating digital transformation**, (2) **evolving omnichannel retail experiences**, and (3) **optimizing the company's strong financial position**[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The company is expanding its retail footprint beyond traditional malls, with approximately **35%** of locations now in non-traditional settings, expecting to open approximately **20** new locations in fiscal 2022[89](index=89&type=chunk) - While Q3 e-commerce sales declined year-over-year, they were up **105%** compared to the third quarter of fiscal 2019, prior to key digital initiatives[87](index=87&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q3 2022 total revenues increased **9.8%** to **$104.5 million**, driven by retail sales growth, partially offset by digital declines and currency impacts, while gross margin improved quarterly but declined year-to-date due to freight costs Q3 2022 vs. Q3 2021 Revenue Growth (in millions) | Revenue Stream | Q3 2022 | Q3 2021 | % Change | | :--- | :--- | :--- | :--- | | Net retail sales | $99.2 | $91.6 | +8.3% | | Commercial revenue | $4.2 | $2.8 | +50.0% | | International franchising | $1.1 | $0.8 | +37.5% | | **Total revenues** | **$104.5** | **$95.1** | **+9.8%** | - The increase in retail revenue was primarily driven by higher demand in existing physical stores (**$17.2 million** increase), which offset a decline in digital sales (**$7.0 million** decrease) and negative foreign currency effects (**$2.5 million** decrease)[101](index=101&type=chunk) - Retail gross margin rate increased by **30 basis points** in Q3 2022 due to leverage on fixed costs but decreased by **120 basis points** for the thirty-nine week period due to significant freight cost increases[102](index=102&type=chunk)[106](index=106&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of October 29, 2022, cash stood at **$12.0 thousand**, with operating cash flow decreasing to **$11.2 thousand** due to inventory investments and **$24.2 thousand** in share repurchases, while a new **$50.0 thousand** buyback program was authorized - Cash and cash equivalents stood at **$12.0 thousand** as of October 29, 2022[117](index=117&type=chunk) - The company repurchased **$24.2 thousand** of its common stock in the thirty-nine weeks ended October 29, 2022[119](index=119&type=chunk)[125](index=125&type=chunk) - On August 31, 2022, a new share repurchase program of up to **$50.0 thousand** was authorized, effective through August 31, 2025[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk disclosures have occurred since the last annual report - There have been no material changes to the company's market risk disclosures since the last annual report[132](index=132&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of October 29, 2022, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of October 29, 2022[133](index=133&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[135](index=135&type=chunk) [Part II Other Information](index=30&type=section&id=Part%20II%20Other%20Information) [Risk Factors](index=30&type=section&id=Item%201A.Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported since the last annual report - No material changes to risk factors were reported since the last Annual Report on Form 10-K[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **336,935** shares at an average price of **$14.21** per share during Q3, as part of publicly announced buyback programs Issuer Purchases of Equity Securities (Q3 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 31 - Aug 27, 2022 | 80,558 | $15.96 | | Aug 28 - Oct 1, 2022 | 256,377 | $13.66 | | Oct 2 - Oct 29, 2022 | - | - | | **Total** | **336,935** | **$14.21** | [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q report, including required CEO and CFO certifications under the Sarbanes-Oxley Act - The report includes required certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[140](index=140&type=chunk)