Core Insights - Build-A-Bear (BBW) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, but down from $0.73 per share a year ago, resulting in an earnings surprise of +12.73% [1] - The company posted revenues of $122.68 million for the quarter ended October 2025, missing the Zacks Consensus Estimate by 1.28%, compared to $119.43 million in the same quarter last year [2] - Build-A-Bear shares have increased approximately 24.7% year-to-date, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $156.37 million, and for the current fiscal year, it is $4.03 on revenues of $533.26 million [7] - The estimate revisions trend for Build-A-Bear was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Retail - Miscellaneous industry, to which Build-A-Bear belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Build-A-Bear Workshop, Inc. (BBW) reaffirmed its revenue growth guidance for fiscal 2025, expecting mid-to-high-single-digit percentage growth and pre-tax income between $62 million and $70 million [1][2]. Financial Performance - For fiscal 2025, the company anticipates revenue growth in the range of 7.29 percent, with an expected total revenue of $532.57 million [1]. Guidance Considerations - The company's guidance takes into account various factors such as tariffs, medical and labor costs, changes in freight expenses, and ongoing inflationary challenges [2]. Strategic Focus - The company aims to advance its long-term strategic initiatives, particularly the global expansion of its partner-operated model, while navigating a dynamic economic environment [2].

Financial Performance - Total revenues for Q3 fiscal 2025 reached a record $122.7 million, an increase of 2.7% compared to $119.4 million in Q3 fiscal 2024[4] - Pre-tax income for Q3 was $10.7 million, down from $13.1 million in the prior year, impacted by approximately $4 million in tariffs and related costs[4] - Diluted earnings per share (EPS) for Q3 decreased by 15.1% to $0.62, compared to $0.73 in the same quarter last year[5] - For the first nine months of fiscal 2025, total revenues were $375.3 million, an increase of 8.5% from $346.0 million in the prior year[5] - Net income for the 13 weeks ended November 1, 2025, was $8.122 million, down 17.8% from $9.870 million in the prior year[26] - Income before income taxes for the 39 weeks ended November 1, 2025, was $45.678 million, compared to $39.655 million for the same period in 2024[31] Shareholder Returns - The company returned $26.1 million to shareholders through share repurchases and dividends in the first nine months of fiscal 2025[4] Future Guidance - The company expects pre-tax income for fiscal 2025 to be in the range of $62 million to $70 million, accounting for approximately $11 million in tariffs[13] - The company reaffirms its guidance for fiscal 2025, considering various economic factors including tariffs and inflation[11] Expansion Plans - The company plans to open at least 60 new experience locations in fiscal 2025, including corporately-managed, partner-operated, and franchise models[13] Inventory and Assets - Inventory at quarter-end totaled $83.3 million, an increase of 17.7% compared to the previous year, primarily due to tariffs[8] - Total assets as of November 1, 2025, were $326.499 million, up from $285.862 million a year earlier[28] - Total stockholders' equity increased to $150.617 million as of November 1, 2025, compared to $128.573 million in the prior year[28] - The total current liabilities as of November 1, 2025, were $83.522 million, an increase from $79.394 million in the previous year[28] Capital Expenditures - Capital expenditures for fiscal 2025 are expected to be between $20 million and $25 million[12] - Capital expenditures for the 13 weeks ended November 1, 2025, were $6.544 million, an increase from $3.871 million in the prior year[29] Retail Operations - Retail gross margin for the 13 weeks ended November 1, 2025, was $60.490 million, representing 53.9% of net retail sales, compared to 54.2% in the same period of 2024[29] - The number of corporately-managed retail locations increased to 375 as of November 1, 2025, from 362 in the previous year[29]

Financial Performance - Build-A-Bear's total revenue in 2024 was $496 million, a 47% increase compared to 2019[16] - Net retail sales reached $460 million in 2024, up 42% from 2019[16] - Third-party revenue grew significantly by 140% to $36 million in 2024 compared to 2019[16] - EBITDA surged by 430% to $81 million in 2024, with a margin of 163%[16] - Free cash flow increased by 199% to $28 million in 2024[16] - The company's ROIC was 33% in 2024[16] Business Diversification and Expansion - Approximately 40% of sales are to teens and adults[20] - Web demand has grown by approximately 110% from 2019 to 2024[20] - Birthdays account for approximately 30% of sales[23] Store Footprint Evolution - The company had 375 corporate stores and 276 third-party locations in 33 countries as of Q3 2025[23] - Partner-operated stores have increased from 39 in 2017 to 138 in 2024[25] - Franchise stores accounted for 17% of the store count mix in 2024[27] Future Outlook - Fiscal year 2025 guidance projects mid-single-digit to high-single-digit revenue growth[87] - The company anticipates pre-tax income between $62 million and $70 million in fiscal year 2025[87] - Build-A-Bear plans to add at least 60 net new units in fiscal year 2025[87]

Core Insights - Build-A-Bear Workshop reported record revenues for the third quarter and first nine months of fiscal year 2025, driven by strong store performance and double-digit growth in the Commercial segment [2][5][13] - The company reaffirmed its guidance for fiscal 2025, expecting mid-to-high-single-digit revenue growth [12][14] Financial Performance - Total revenues for Q3 reached $122.7 million, a 2.7% increase from $119.4 million in the previous year [5][6] - For the first nine months, total revenues were $375.3 million, up 8.5% from $346.0 million [5][13] - Pre-tax income for Q3 was $10.7 million, down from $13.1 million, impacted by approximately $4 million in tariffs [5][6] - Nine-month pre-tax income was $45.7 million, compared to $39.7 million in the prior year [5][13] - Diluted earnings per share (EPS) for Q3 was $0.62, a decrease of 15.1% from $0.73 [5][6] - Nine-month diluted EPS increased to $2.73 from $2.20, reflecting a 24.1% growth [5][13] Operational Highlights - The company opened over 50 net new units year-to-date, including entries into seven new countries [2][3] - As of the end of Q3, Build-A-Bear operated 651 locations globally, comprising 375 corporately-managed, 168 partner-operated, and 108 franchise locations [7][30] Cost and Expenses - The third quarter saw a pre-tax margin of 8.7%, down from 11.0% in the prior year, attributed to tariff impacts and increased SG&A expenses [6][25] - SG&A expenses rose due to higher store-level compensation and inflationary pressures [6][13] Balance Sheet and Capital Management - Cash and cash equivalents at the end of Q3 totaled $27.7 million, a decrease of 4.2% year-over-year [8][29] - Inventory increased by 17.7% to $83.3 million, primarily due to tariffs and product pull-forward strategies [9][29] - The company returned $26.1 million to shareholders through share repurchases and dividends in the first nine months [5][10] Future Outlook - The company expects to maintain its revenue and pre-tax income guidance for fiscal 2025, factoring in tariff impacts and inflationary challenges [12][14][19]

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Group 1 - Build-A-Bear Workshop (BBW) is currently overlooked in the market primarily due to its classification as a retail company, which is generally perceived as more sensitive to macroeconomic changes such as inflation and unemployment [1] - The company is identified as a value investment opportunity, focusing on identifying undervalued stocks with growth potential [1]

Group 1 - Build-A-Bear Workshop (BBW) is currently overlooked in the market primarily due to its classification as a retail company, which is generally perceived as more sensitive to macroeconomic changes such as inflation and unemployment [1] - The company is identified as a value investment opportunity, focusing on identifying undervalued stocks with growth potential [1]

Group 1 - November has been challenging for many investors, particularly those heavily invested in the Technology sector and crypto assets like Bitcoin [1] - The performance of portfolios in these sectors has been notably poor during this month [1] Group 2 - The article emphasizes the importance of conducting due diligence before making investment decisions [2] - It highlights a focus on dividend investing in quality blue-chip stocks, BDCs, and REITs as a strategy for retirement income [2] - The aspiration to assist lower and middle-class workers in building high-quality, dividend-paying investment portfolios is mentioned [2]