Financial Performance & Growth - Build-A-Bear's total revenue reached $496 million in 2024, a 47% increase compared to 2019 [16] - Net retail sales amounted to $460 million in 2024, reflecting a 42% growth since 2019 [16] - Third-party revenue (Commercial + International Franchise) surged to $36 million in 2024, a 140% increase from 2019 [16] - EBITDA reached $81 million in 2024, a substantial 430% increase compared to 2019 [16] - Free Cash Flow (FCF) was $28 million in 2024, showing a 199% increase from 2019 [16] - The company's Return on Invested Capital (ROIC) was 33% in 2024 [16] Business Diversification & Expansion - Approximately 40% of sales are attributed to teens and adults [20] - Web Demand has grown by approximately 110% from 2019 to 2024 [20] - Build-A-Bear has expanded to 369 corporate stores and 235 third-party stores across multiple formats in 30 countries as of Q1 2025 [23] Store Performance - Discovery store model averages $1578K in store unit volume with a 4-Wall EBITDA of $535K and a 34% margin [55] - Concourse/SIS store model averages $615K in store unit volume with a 4-Wall EBITDA of $152K and a 25% margin [55] Systemwide Sales - Systemwide sales reached $5481 million in 2024 [94]

Core Insights - Build-A-Bear (BBW) reported quarterly earnings of $1.17 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.82 per share a year ago, representing a 36.05% earnings surprise [1] - The company achieved revenues of $128.4 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 8.86% and increasing from $114.73 million year-over-year [2] - Build-A-Bear has outperformed consensus EPS estimates three times in the last four quarters and has topped revenue estimates four times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $115.21 million, while for the current fiscal year, the estimate is $3.88 on revenues of $511.2 million [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Retail - Miscellaneous industry, to which Build-A-Bear belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Performance - Total revenues for Q1 fiscal 2025 reached a record $128.4 million, an increase of 11.9% compared to the same period last year[3] - Pre-tax income for the quarter was a record $19.6 million, reflecting a year-over-year increase of 30.6%[4] - Diluted earnings per share (EPS) increased by 42.7% to $1.17, driven by higher pre-tax income and a reduced share count[10] - Net retail sales amounted to $119.6 million, up 10.9%, while consolidated e-commerce demand grew by 0.5%[4] - EBITDA for the 13 weeks ended May 3, 2025, was $23,131 thousand, compared to $18,261 thousand for the same period in 2024, reflecting a year-over-year increase of 26.5%[30] - Retail gross margin for the 13 weeks ended May 3, 2025, was $68,018 thousand, a 16.5% increase from $58,453 thousand for the same period in 2024, resulting in a gross margin percentage of 56.9%[27] Shareholder Returns - The company returned $7.1 million to shareholders through share repurchases and dividends, with $44.3 million in cash at the end of the quarter[3] Future Guidance - The company expects total revenues to grow on a mid-single-digit percentage basis for fiscal 2025[11] - Pre-tax income guidance for fiscal 2025 is updated to a range of $61 million to $67 million[11] Growth and Expansion - The company had net new unit growth of 15 global experience locations, bringing the total to 604 locations[5] - The number of corporately-managed retail locations increased to 369 in May 2025, up from 357 in May 2024, indicating a growth of 3.4%[27] - The number of franchised stores increased to 87 in May 2025, compared to 77 in May 2024, reflecting a growth of 13.0%[27] Inventory and Assets - Inventory at the end of the quarter was $72.3 million, an increase of 12.9% year-over-year[7] - Total assets increased to $308,303 thousand in May 2025, up from $289,956 thousand in February 2025, representing a growth of 4.6%[25] Capital Expenditures - Capital expenditures for the quarter totaled $2.9 million, compared to $2.4 million in the previous year[8] - Capital expenditures for the 13 weeks ended May 3, 2025, were $2,907 thousand, an increase from $2,430 thousand in the same period of 2024, marking a rise of 19.6%[27] Liabilities and Equity - Total current liabilities increased to $85,351 thousand in May 2025, up from $79,394 thousand in February 2025, representing a rise of 7.4%[25] - The total stockholders' equity increased to $148,682 thousand in May 2025, up from $139,082 thousand in February 2025, representing a growth of 6.0%[25] - Retained earnings rose to $98,243 thousand in May 2025, compared to $89,516 thousand in February 2025, showing an increase of 9.7%[25] Operating Assets - Operating lease right-of-use asset increased to $92,699 thousand in May 2025, compared to $90,200 thousand in February 2025, indicating a growth of 2.8%[25]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Build-A-Bear (BBW) driven by higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on May 29, 2025, with a consensus EPS estimate of $0.86, reflecting a +4.9% change year-over-year, and revenues projected at $117.95 million, up 2.8% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.61% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.97% for Build-A-Bear, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Historical Performance - In the last reported quarter, Build-A-Bear exceeded the expected EPS of $1.52 by delivering $1.59, resulting in a surprise of +4.61%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Conclusion - Build-A-Bear is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Core Viewpoint - Build-A-Bear (BBW) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in previous quarters [1][6]. Earnings Performance - Build-A-Bear has consistently exceeded earnings estimates, with an average surprise of 4.45% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $1.59 per share, surpassing the Zacks Consensus Estimate of $1.52 per share by 4.61% [3]. - In the previous quarter, Build-A-Bear reported earnings of $0.73 per share against an expectation of $0.70 per share, resulting in a surprise of 4.29% [3]. Earnings Estimates and Predictions - Recent estimates for Build-A-Bear have been revised upwards, indicating a positive outlook for the company's earnings [6]. - The Zacks Earnings ESP for Build-A-Bear is currently +0.97%, suggesting that analysts are optimistic about the company's earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [9]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8].

Company Overview - Build-A-Bear Workshop, Inc. (NYSE: BBW) is a specialty retail store primarily focused on selling children's plush toys [1] - The company differentiates itself by emphasizing in-store customer experience and fostering emotional connections with customers rather than just selling products [1] Investment Strategy - The focus is on identifying strong companies that are undervalued by the stock market, with the belief that corrective forces will realign these "mispriced" stocks to their intrinsic value [1] - Corrective forces may include activist investors' proxy fights, leadership and strategic changes, spin-offs, and industry cyclicality [1] - The objective is to identify these opportunities before they materialize, as stock return overperformance is expected from such investments [1]

Retail Expansion - In fiscal 2024, the company opened a net of 64 new Build-A-Bear Workshop retail experience locations, with expectations of at least 50 new locations in fiscal 2025[26]. - The company has shifted to non-traditional retail locations, with over a third of total stores now in such settings, including family-centric tourist sites[26]. - The company’s retail stores also function as mini distribution centers, facilitating efficient fulfillment of digital demand through programs like "Buy Online, Ship From Store"[34]. Digital Transformation - The company has accelerated its digital transformation initiatives, enhancing marketing and loyalty programs to increase consumer engagement and expand its total addressable market[26]. Financial Performance - The company’s cash flows have improved significantly, allowing for increased support for key initiatives and returning capital to shareholders through dividends and share repurchases[26]. - The company’s operating margins have remained robust despite inflationary pressures, allowing for disciplined expense management and continued investment in growth initiatives[26]. Inventory and Currency Risk - As of February 1, 2025, the company's inventory balance was $69.8 million, an increase of $6.3 million compared to February 3, 2024[30]. - The company purchases all inventory in U.S. dollars, exposing it to currency risk from fluctuations in foreign currencies[237]. - A hypothetical 10% decrease in current foreign currency exchange rates would not have a material effect on the company's financial position or results of operations[238]. - Foreign currency transaction gains and losses have not been material to the company's financial statements to date[238]. - The company does not have a formal hedging program with respect to foreign currency[238]. - International sales are primarily denominated in Canadian dollars, Euros, and British pounds, which may affect pricing and revenue[237]. - The company’s foreign subsidiaries buy inventory in their functional currency, which can increase costs if their currencies depreciate against the U.S. dollar[237]. - Translation adjustments from foreign operations are reported in accumulated other comprehensive income[238]. - The company’s financial results are reported in U.S. dollars, which may be impacted by changes in currency exchange rates[236]. Employee Information - The company employs approximately 1,000 full-time and 4,100 part-time employees across the U.S., Canada, the UK, and the Republic of Ireland as of February 1, 2025[35]. Licensing and Brand Relationships - The company has developed licensing relationships with major brands such as Disney, NBCUniversal, and Pokémon to enhance its product offerings and marketing opportunities[49]. - The company’s strategic focus includes expanding product offerings and licensing relationships to drive retail performance and leverage brand equity[25]. Regulatory Compliance - The company is subject to the reporting requirements of the Securities Exchange Act of 1934 and files periodic reports with the SEC[50]. Risk Factors - For detailed risk factors that could affect results, refer to "ITEM 1A. RISK FACTORS" in the Annual Report[239].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

Group 1 - The article highlights that investors may not be focusing on the Consumer Discretionary sector, particularly Build-A-Bear Workshop, Inc. (NYSE: BBW), due to rising economic uncertainty [1] Group 2 - The author expresses a personal investment strategy focused on dividend investing in quality blue-chip stocks, BDCs, and REITs, aiming to build a portfolio that supports retirement income [2] - The article emphasizes the importance of conducting due diligence for investors and encourages building investment portfolios of high-quality, dividend-paying companies [2] Group 3 - The author has a beneficial long position in BBW shares, indicating a personal investment interest in the company [3] - The article does not provide specific investment recommendations or advice, emphasizing that past performance is not indicative of future results [4]

Build-A-Bear (BBW) closed the last trading session at $38.84, gaining 1.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $54.33 indicates a 39.9% upside potential.The average comprises three short-term price targets ranging from a low of $50 to a high of $58, with a standard deviation of $4.04. While the lowest estimate indicates an increase of 28.7% from the current price level, ...