Build-A-Bear Workshop(BBW) - 2026 Q3 - Quarterly Results

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]