Core Perspective - The article emphasizes the importance of investing in companies with a strong economic moat and simple yet effective business models, aligning with the investment philosophy of Warren Buffett [1]. Investment Strategy - The focus is on dividend investing in high-quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) [1]. - The investment approach is characterized as buy-and-hold, prioritizing quality over quantity, with a goal to supplement retirement income through dividends within the next 5-7 years [1]. Target Audience - The article aims to assist hard-working lower and middle-class workers in building investment portfolios that consist of high-quality, dividend-paying companies [1]. - It seeks to provide a new perspective for investors to achieve financial independence [1].

Summary of Key Points Core Viewpoint - Build-A-Bear Workshop has shown strong growth in revenue and earnings, while Haverty Furniture Companies has faced significant declines in performance, but both companies have potential for future growth [4][6][12]. Build-A-Bear Workshop - Build-A-Bear reported a strong third quarter with $119 million in revenue and an EPS of 73 cents, exceeding analyst expectations [4]. - The company has opened 17 new locations, including international ones, and plans to increase its total locations by about 25% by 2025 [4]. - New product launches, such as the Mini Beans collection, have contributed to customer growth [4]. - Despite strong performance, Build-A-Bear's web sales have underperformed, leading to a narrowing of full-year revenue guidance [5]. - The company has a Buy rating with a price target of $52.50, indicating an upside potential of nearly 22% [6]. Haverty Furniture Companies - Haverty has experienced a 1-year total return of -37%, attributed to falling revenues, profits, and gross margins [2]. - The company announced a leadership change with Steven Burdette becoming CEO, who previously helped the company achieve significant net income growth during the pandemic [6]. - Haverty's design business reported a 19% year-over-year growth, and the company has a strong cash position of over $121 million with no funded debt [7]. - The firm plans to open three new stores in the fourth quarter and has a dividend yield of 5.78% [7]. Retail Industry Outlook - The retail industry may see transformative changes in 2025, with opportunities for building customer loyalty amid increasing competition and potential supply chain issues [11]. - Maintaining momentum beyond the holiday season will be crucial for retailers, including Build-A-Bear and Haverty [12].

Group 1 - Build-A-Bear Workshop, Inc. (NYSE: BBW) presents an upside potential of 14.38% to 32.38% for investors [1] - Despite a bleak consumer outlook, BBW has demonstrated the ability to generate consistent cash flows [1] - The investment philosophy is based on fundamental bottom-up analysis and quantitative modeling, focusing on identifying perception gaps [1] Group 2 - The analysis emphasizes the importance of capitalizing on over-pessimism and excessive exuberance in the market [1] - The objective is to identify asymmetric opportunities for investors [1]

Store Operations and Growth - As of November 2, 2024, the company operated 362 corporately-managed stores, 123 partner-operated locations, and 80 international franchised stores[81]. - The company expects net new unit growth of at least 65 locations in fiscal 2024, focusing on non-traditional locations such as family-centric tourist sites[87]. - The company has opened a net of 40 new retail experience locations during the first thirty-nine weeks of fiscal 2024[87]. - The number of third-party retail locations increased to 123 by November 2, 2024, from 92 at the beginning of the period, highlighting the expansion of the capital-light retail model[91]. Financial Performance - The company reported growth in total revenues and profit in fiscal 2023, driven by strategic investments and improved operational efficiency[87]. - Consolidated revenues increased by 11.0%, driven by a $9.1 million (9.1%) increase in net retail sales and a $2.6 million (43%) increase in commercial revenue compared to the third fiscal quarter of 2023[98]. - Net retail sales for the thirteen weeks ended November 2, 2024, were $109.5 million, up from $100.4 million for the same period in 2023, with existing stores contributing $8.8 million to this increase[99]. - Commercial revenue reached $8.6 million for the thirteen weeks ended November 2, 2024, compared to $6.0 million for the same period in 2023, primarily due to increased sales volume from wholesale accounts[102]. - For the thirty-nine weeks ended November 2, 2024, net retail sales were $320.8 million, a $4.9 million (1.5%) increase compared to the same period in 2023[108]. - Commercial revenue for the thirty-nine weeks ended November 2, 2024, was $21.9 million, up from $17.7 million in the prior year, reflecting a $4.2 million increase[109]. - International franchising revenue was $1.3 million for the thirteen weeks ended November 2, 2024, compared to $1.1 million in the same period of 2023, mainly due to product shipment timing[103]. Profitability and Margins - Retail gross margin dollars increased by $6.5 million to $59.4 million, with the retail gross margin rate improving by 160 basis points compared to the prior year[104]. - EBITDA for the thirteen weeks ended November 2, 2024, increased by $3.4 million, or 25.3%, to $16.7 million from $13.3 million for the same period last year[117]. - EBITDA for the thirty-nine weeks ended November 2, 2024, increased by $0.7 million, or 1.5%, to $49.9 million from $49.2 million for the same period last year[118]. Shareholder Returns and Capital Management - The company returned $42 million to shareholders through special dividends and has initiated a quarterly dividend program, declaring cash dividends of $0.20 per share totaling $2.9 million, $2.7 million, and $2.7 million in the first three quarters of fiscal 2024[88]. - The company has implemented a $100 million stock repurchase program announced in September 2024, following previous repurchase programs totaling $75 million[88]. - The company utilized $23.0 million in cash to repurchase 832,944 shares during the thirty-nine weeks ended November 2, 2024, compared to $15.2 million for 672,734 shares in the same period last year[133]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased by $5.2 million to $27.6 million for the thirty-nine weeks ended November 2, 2024, compared to $32.7 million for the same period last year[124]. - Total inventory at quarter end was $70.8 million, an increase of $6.3 million or 10% from the end of the fiscal 2023 third quarter[131]. - Capital spending through the thirty-nine weeks ended November 2, 2024, totaled $9.6 million, with an expected capital expenditure of approximately $18 to $20 million in fiscal 2024[131]. Business Strategy and Digital Transformation - The company's digital transformation includes the launch of its first animated theatrical film in 2023, "Glisten and the Merry Mission," aimed at expanding its consumer base beyond children[87]. - The company aims to enhance its omnichannel capabilities, integrating customer communications to acquire new customers and increase purchase occasions[87]. - The company has shifted to asset-light business models, improving cash flows and supporting long-term profitable growth initiatives[88]. - The company operates in three segments: Direct-to-Consumer, Commercial, and International franchising, leveraging its brand strength across various channels[82]. Financial Position and Obligations - As of November 2, 2024, the company had a consolidated cash balance of $29.0 million, with 79% domiciled within the U.S.[123]. - The company had purchase obligations totaling approximately $99.7 million as of November 2, 2024, with $29.0 million due in the next 12 months[132]. - The company had no outstanding borrowings as of November 2, 2024, under its revolving credit agreement[127]. Economic Outlook - The company expects inflationary pressures to continue throughout fiscal 2024, particularly through wage increases[135].

Build-A-Bear (BBW) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.29%. A quarter ago, it was expected that this toy retailer would post earnings of $0.65 per share when it actually produced earnings of $0.64, delivering a surprise of -1.54%.Over the last four quarters, the company ...

Exhibit 99.1 BUILD-A-BEAR WORKSHOP REPORTS RECORD THIRD QUARTER FISCAL 2024 RESULTS ST. LOUIS, MO (December 5, 2024) – Build-A-Bear Workshop, Inc. (NYSE: BBW) today announced results for the third quarter of fiscal year 2024 ended November 2, 2024. ● Third quarter revenues were $119.4 million, an increase of 11.0%, pre-tax income was $13.1 million, an increase of 26.4%, and diluted earnings per share was $0.73, an increase of 37.7% ● The Company updates its fiscal 2024 guidance, including increasing net new ...

Introducing a Plush Product Line That Combines Cuddly Companions with KFC's Iconic Flavor, Exclusively at Build-A-BearST. LOUIS, Nov. 21, 2024 /PRNewswire/ -- Build-A-Bear Workshop (NYSE: BBW), the beloved global brand known for its heartwarming, memorable experiences, has teamed up with KFC®, the original fried chicken brand, for a finger lickin' good collaBEARation—available starting today. This tasty mashup of comfort plush and comfort food is playfully inspired by KFC's classic red-and-white striped buc ...

In April 2020, when retail was feeling the shockwaves of the COVID pandemic ripping through the United States. A stuffed animal retailer based out of St Louis was on the brink of bankruptcy. Since then, that company, Build-a-Bear Workshop (Hi there! I work in Restructuring advisory in London and write about businesses that interest me here on Seeking Alpha. My work within the Restructuring space primarily focuses on smaller businesses, therefore most of my coverage on here will be micro-cap to mid-cap equit ...

Bringing over two decades of brand marketing expertise from leadership roles at the renowned Coca-Cola Company ST. LOUIS, Oct. 29, 2024 /PRNewswire/ -- Build-A-Bear Workshop, Inc. (NYSE: BBW) is announcing the appointment of Kim Utlaut as Senior Vice President and Chief Brand Officer. Utlaut most recently served as a General Manager for Franchise Leadership at The Coca-Cola Company. Kim joins Build-A-Bear at a pivotal moment of success for the company following three consecutive recordsetting years. Post th ...

Stumbling across Build-A-Bear Workshop (NYSE: BBW ), a company I'm very familiar with, I didn't for once think the stock was one who paid a dividend. Honestly, I didn't even think they wereSign Up For A FREE 2-Week Trial Join iREIT® on Alpha today... for more in-depth research on REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers. You'll get more articles throughout the week, and access to our Ratings Tracker with buy/sell recommendations on all the stocks we cover. Plus unlimited acc ...