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 ...

Build-A-Bear Workshop Q3 2024 Earnings Release [Financial Highlights and Executive Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Executive%20Commentary) The company reported record Q3 2024 results with double-digit growth in revenue and pre-tax income, driven by brand evolution and global expansion Q3 2024 Key Metrics | Metric | Q3 2024 | Change YoY | | :--- | :--- | :--- | | Total Revenues | $119.4 million | +11.0% | | Pre-tax Income | $13.1 million | +26.4% | | Diluted EPS | $0.73 | +37.7% | - The company raised its fiscal 2024 guidance for net new unit growth from 50 to **at least 65 experience locations** globally[3](index=3&type=chunk) - CEO Sharon Price John attributed the record performance to the business model's evolution and the brand's strength, highlighting the expansion of its international footprint to over 20 countries[3](index=3&type=chunk) - CFO Voin Todorovic noted that strong retail and third-party sales drove profitability, but web demand underperformed, and the company repurchased **over 6% of its shares** outstanding in the past year[4](index=4&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) The company achieved strong Q3 growth in revenue and profit, while year-to-date performance showed modest revenue growth and a slight decline in pre-tax income [Third Quarter Fiscal 2024 Results](index=1&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) Q3 2024 saw an 11% revenue increase to $119.4 million and a 26.4% rise in pre-tax income, driven by strong sales and margin expansion Q3 2024 Revenue Performance | Revenue Stream | Q3 2024 Value | % Change YoY | | :--- | :--- | :--- | | Total Revenues | $119.4 million | +11.0% | | Net Retail Sales | $109.5 million | +9.1% | | E-commerce Demand | N/A | +1.3% | | Commercial & Franchise | $9.9 million | +38.8% | Q3 2024 Profitability Metrics | Profitability Metric | Q3 2024 Value | % Change YoY | | :--- | :--- | :--- | | Pre-tax Income | $13.1 million | +26.4% | | Diluted EPS | $0.73 | +37.7% | | EBITDA | $16.7 million | +25.3% | [Nine-Month Fiscal 2024 Results](index=2&type=section&id=Nine-Month%20Fiscal%202024%20Results) Year-to-date revenue grew 2.7% to $346.0 million, while pre-tax income slightly declined due to higher SG&A expenses Nine-Month 2024 Revenue Performance | Revenue Stream | Nine-Month 2024 Value | % Change YoY | | :--- | :--- | :--- | | Total Revenues | $346.0 million | +2.7% | | Net Retail Sales | $320.8 million | +1.5% | | E-commerce Demand | N/A | -11.8% | | Commercial & Franchise | $25.2 million | +20.5% | Nine-Month 2024 Profitability Metrics | Profitability Metric | Nine-Month 2024 Value | % Change YoY | | :--- | :--- | :--- | | Pre-tax Income | $39.7 million | -1.3% | | Diluted EPS | $2.20 | +4.8% | | EBITDA | $49.9 million | +1.5% | [Operational and Balance Sheet Review](index=2&type=section&id=Operational%20and%20Balance%20Sheet%20Review) The company expanded its global store count, maintained a strong debt-free balance sheet, and returned significant capital to shareholders [Store Activity](index=2&type=section&id=Store%20Activity) The company added 17 net new global locations in Q3, increasing its total store count to 565 Global Store Count (as of Q3 2024 End) | Store Type | Count at Q3 2024 End | | :--- | :--- | | Corporately-managed | 362 | | Partner-operated | 123 | | Franchise | 80 | | **Total Global Locations** | **565** | [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) The company ended Q3 with a 16.8% year-over-year increase in cash to $29.0 million and no outstanding debt Key Balance Sheet Items | Balance Sheet Item | Value at Q3 2024 End | % Change YoY | | :--- | :--- | :--- | | Cash and cash equivalents | $29.0 million | +16.8% | | Inventory | $70.8 million | +9.8% | - The company finished the quarter with **no borrowings** under its revolving credit facility[10](index=10&type=chunk) - Capital expenditures totaled **$3.9 million** for the third quarter and **$9.6 million** for the first nine months of fiscal 2024[11](index=11&type=chunk) [Return of Capital to Shareholders](index=3&type=section&id=Return%20of%20Capital%20to%20Shareholders) The company returned $31.3 million to shareholders in the first nine months and adopted a new $100 million share repurchase program Capital Return Summary | Capital Return Activity | First Nine Months 2024 | | :--- | :--- | | Share Repurchases | $23.0 million | | Quarterly Dividends | $8.3 million | | **Total Capital Returned** | **$31.3 million** | - A new **$100.0 million** stock repurchase program was adopted on September 11, 2024, with **$97.0 million** remaining available for future repurchases[14](index=14&type=chunk) [2024 Outlook](index=3&type=section&id=2024%20Outlook) The company updated its fiscal 2024 guidance, raising its net new store growth target and projecting revenue between $489 million and $495 million Fiscal Year 2024 Financial Guidance | FY 2024 Guidance | Updated Range | | :--- | :--- | | Total Revenue | $489M - $495M | | Pretax Income | $65M - $67M | Fiscal Year 2024 Operational Guidance | FY 2024 Other Expectations | Updated Guidance | | :--- | :--- | | Net New Unit Growth | At least 65 locations | | Capital Expenditures | $18M - $20M | | Depreciation & Amortization | $15M - $16M | | Tax Rate | Approx. 24.5% | [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents detailed unaudited financial statements, including income statements, balance sheets, and non-GAAP reconciliations [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The Q3 income statement shows year-over-year growth in revenue and net income, while the nine-month period reflects revenue growth but slightly lower net income Q3 Statement of Operations ($ in thousands) | Q3 Statement of Operations | 13 Weeks Ended Nov 2, 2024 | 13 Weeks Ended Oct 28, 2023 | | :--- | :--- | :--- | | Total Revenues | $119,430k | $107,562k | | Gross Profit | $64,640k | $56,633k | | Net Income | $9,870k | $7,586k | Nine-Month Statement of Operations ($ in thousands) | Nine-Month Statement of Operations | 39 Weeks Ended Nov 2, 2024 | 39 Weeks Ended Oct 28, 2023 | | :--- | :--- | :--- | | Total Revenues | $345,958k | $336,837k | | Gross Profit | $187,374k | $180,172k | | Net Income | $30,107k | $30,532k | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of November 2, 2024, reflects growth in total assets to $285.9 million and an increase in stockholders' equity Consolidated Balance Sheet Highlights ($ in thousands) | Balance Sheet Item | Nov 2, 2024 | Oct 28, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $28,955k | $24,800k | | Inventories, net | $70,774k | $64,466k | | Total Assets | $285,862k | $250,543k | | Total Stockholders' Equity | $128,573k | $111,648k | [Unaudited Selected Financial and Store Data](index=9&type=section&id=Unaudited%20Selected%20Financial%20and%20Store%20Data) This section provides supplementary data showing an improved retail gross margin and detailing the growth in store locations Retail Gross Margin | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Retail Gross Margin % | 54.2% | 52.6% | Store Count by Type | Store Count (End of Period) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Corporately-managed | 362 | 356 | | Franchised | 80 | 70 | | Third-party retail | 123 | 85 | [Reconciliation of GAAP to Non-GAAP figures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20figures) This section reconciles GAAP pre-tax income to non-GAAP EBITDA, showing year-over-year growth for both Q3 and the nine-month period Reconciliation of Income Before Taxes to EBITDA | EBITDA Reconciliation ($ in thousands) | Q3 2024 | Q3 2023 | Nine-Month 2024 | Nine-Month 2023 | | :--- | :--- | :--- | :--- | :--- | | Income before income taxes | $13,081 | $10,348 | $39,655 | $40,180 | | EBITDA | $16,660 | $13,298 | $49,915 | $49,196 |

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 ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the st ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.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 tried-and-true metrics an ...

Exclusive Pop-Up Shops, Varsity-Themed In-Store Parties, and Co-Marketed Experiences Hit the Mark with Cheer CommunityST. LOUIS, Oct. 3, 2024 /PRNewswire/ -- Build-A-Bear Workshop (NYSE: BBW), the beloved global brand known for offering a personalized experience where guests of all ages can create their own special furry friends, today announces a groundbreaking collaboration with Varsity Brands through its Varsity Spirit division, the global leader in cheerleading, dance team, and band apparel, camps, comp ...