Why Build-A-Bear Workshop Stock Surged Nearly 16% Higher Today

Core Viewpoint - Build-A-Bear Workshop experienced significant stock price appreciation due to strong quarterly results, outperforming market expectations for both revenue and profitability [1][2]. Group 1: Financial Performance - Build-A-Bear reported revenue of just under $112 million for the second quarter, reflecting a year-over-year increase of slightly more than 2%, surpassing analyst expectations of around $110 million [2]. - The company's GAAP net income rose by 5% to nearly $8.8 million, equating to $0.64 per share, exceeding the consensus estimate of $0.59 [2]. - A notable contributor to revenue growth was a nearly 45% increase in commercial and international franchise revenue, which amounted to $8.3 million in the second quarter [2]. Group 2: Future Outlook - Management reiterated its guidance for 2024, forecasting mid-single-digit percentage growth in both non-GAAP revenue and pre-tax income, without providing specific figures [3]. - The company anticipates a minimum of 50 new "experience" locations as part of its net new unit growth strategy [3]. - Capital expenditures are projected to be between $18 million and $20 million [3].