Build-A-Bear Workshop(BBW) - 2026 Q4 - Annual Results

Financial Performance - Total revenues for Q4 fiscal 2025 reached a record $154.5 million, up 2.7% from $150.4 million in Q4 fiscal 2024; total revenues for the fiscal year were $529.8 million, an increase of 6.7% from $496.4 million[4]. - Pre-tax income for Q4 was $21.5 million, representing 13.9% of total revenues, compared to $27.5 million (18.3% of total revenues) in the prior year; for the fiscal year, pre-tax income was $67.2 million, or 12.7% of total revenues, slightly up from $67.1 million (13.5% of total revenues) in the previous year[5]. - Diluted earnings per share (EPS) for Q4 were $1.26, down from $1.62; for the fiscal year, diluted EPS reached a record $3.99, compared to $3.80 in the prior year[4]. - Net income for the 13 weeks ended January 31, 2026, was $16,395 thousand, representing a decrease of 24.0% compared to $21,678 thousand for the same period in 2025[28]. - Net income for the 52 weeks ended January 31, 2026, was $52,203 thousand, slightly up from $51,785 thousand in 2025, reflecting a net income margin of 9.9%[30]. - The diluted earnings per share for the 52 weeks ended January 31, 2026, was $3.99, an increase from $3.80 in 2025[30]. Shareholder Returns - The company returned $39.0 million to shareholders in fiscal 2025 through share repurchases and dividends, with a quarterly dividend increase of 4.5% to $0.23 per share[4]. - The company has $55.0 million remaining under its stock repurchase program, indicating ongoing commitment to returning capital to shareholders[11]. Expansion and Growth - The company plans to open at least 50 new experience locations in fiscal 2026, continuing its expansion strategy[12]. - The company experienced a net new unit growth of 64 locations in fiscal 2025, ending the year with 662 total locations[7]. - The number of corporately-managed retail locations increased to 375 as of January 31, 2026, from 368 in the previous year[34]. Revenue Guidance and Projections - Fiscal 2026 guidance projects total revenue growth in the mid-single digits and pre-tax income to range from a mid-single-digit decline to low single-digit growth, factoring in approximately $16 million in tariff-related costs[13]. - Total revenues for the 52 weeks ended January 31, 2026, reached $529,832 thousand, an increase of 6.7% from $496,404 thousand in 2025[30]. - Total revenues for the 13 weeks ended January 31, 2026, were $154,511 thousand, a 2.1% increase from $150,446 thousand for the same period in 2025[28]. Cost and Inventory Management - Capital expenditures for fiscal 2025 totaled $25.5 million, with inventory increasing by 17.8% to $82.2 million due to higher tariffs and anticipated sales activity[9]. - The company reported capital expenditures of $12,674 thousand for the 13 weeks ended January 31, 2026, compared to $9,746 thousand in the same period of 2025[34]. E-commerce Performance - Consolidated e-commerce demand decreased by 13.6% in Q4 and 5.5% for the fiscal year, indicating challenges in online sales[5]. Profitability Metrics - The gross profit margin for the 13 weeks ended January 31, 2026, was 55.2%, down from 56.6% in the same period of 2025[28]. - The retail gross margin for the 52 weeks ended January 31, 2026, was 56.1%, compared to 55.0% for the same period in 2025[34]. Asset Management - The company’s total assets as of January 31, 2026, were $345,453 thousand, up from $289,956 thousand in 2025[32].