Build-A-Bear Workshop (BBW) Q1 2026 Earnings Call May 29, 2025 09:00 AM ET Company Participants Gary Schnierow - Vice President of Investor Relations & Corporate FinanceSharon Price John - President & CEOJ. Christopher Hurt - Chief Operations & Experience OfficerVoin Todorovic - CFOKeegan Cox - Research Associate Conference Call Participants Eric Beder - CEO & Senior Research AnalystGreg Gibas - Vice President & Senior Research AnalystSteve Silver - Senior Equity Research Analyst Operator Greetings, and wel ...

Build-A-Bear Workshop (BBW) Q1 2026 Earnings Call May 29, 2025 09:00 AM ET Speaker0 Greetings, and welcome to the Build A Bear Workshop First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gary Chinaro, Investor Relations. Thank you, sir. You may begin. Speaker1 Thank you. Good ...

Financial Data and Key Metrics Changes - The company reported net sales of $400.4 million for the fourth fiscal quarter, representing a decline of 11.7% compared to the prior year [4][14] - Adjusted EBITDA for the quarter was $47.1 million, or 11.8% of net sales, down from 12.1% in the same period last year [8][16] - Adjusted net income was $24 million, or $1.61 per diluted share, compared to $28.2 million, or $1.78 per diluted share last year [16] - The gross profit margin decreased by 160 basis points to 17% of net sales from 18.6% in the prior year [15] - For the full fiscal year, net sales were $1.7 billion, a decrease of 7.5% year-over-year [18] Business Line Data and Key Metrics Changes - Remodel net sales, which include home centers and independent dealers, decreased by 10.4% in the fourth quarter [14] - New construction net sales decreased by 13.4% for the quarter compared to last year [14] - The home center business saw a low single-digit negative comp, while the pro business reported a positive comp for the quarter [5][6] Market Data and Key Metrics Changes - Existing home sales fell by 0.5% month-over-month to a seasonally adjusted rate of 4 million in April 2025, with a year-over-year decline of 2% [4] - The NAHB housing market index fell to 34 in May, marking the lowest level since November 2023 [7] - Single-family housing starts experienced negative comps from January to April [7] Company Strategy and Development Direction - The company focuses on three main strategic pillars: growth, digital transformation, and platform design [10] - Key accomplishments include product innovation, capacity investments, and channel expansion, with over 30% of made-to-order sales coming from products launched in the last three years [10][11] - The company is enhancing its manufacturing capabilities and transitioning independent distributor customers to a new brand [11][12] Management's Comments on Operating Environment and Future Outlook - The management expects demand trends to remain challenging, with net sales for fiscal year 2026 projected to range from low single-digit declines to low single-digit increases [9][20] - The outlook is influenced by macroeconomic factors, including interest rates, tariff changes, and consumer behavior [20] - Management believes that a decline in mortgage rates and increased consumer confidence could positively impact the housing market [9] Other Important Information - The company repurchased 1.17 million shares during fiscal year 2025, representing about 7.5% of outstanding shares [19] - Free cash flow totaled $65.7 million for the current fiscal year, down from $138.5 million in the prior year [18] - The company has a net leverage ratio of 1.56 times adjusted EBITDA at the end of the fourth quarter [19] Q&A Session Summary Question: Impact of tariffs on full year guidance - Management indicated that the outlook was significantly influenced by tariffs, estimating a cost impact of approximately $20 million [26][27] Question: Gross margin improvement - The improvement in gross margins was attributed to operational adjustments made in response to previous demand softness [28][30] Question: Revenue guidance assumptions - The revenue guidance assumes a recovery in both remodel and new construction markets in the second half of fiscal year 2026 [35][36] Question: Cost side considerations - Management acknowledged potential commodity inflation and labor costs as factors to consider for the full year guidance [43] Question: Savings from facility closure - The closure of a components facility is expected to yield annual savings of $5 million to $6 million [45] Question: Automation investments progress - Management described the company as being in the early stages of its automation investment journey, with significant spending planned for fiscal year 2026 [53][54]

Core Insights - Fluent, Inc. has announced the formation of its inaugural Board of Advisors to enhance its commerce media solutions and drive growth and innovation [1][10] - The Board will collaborate with Fluent's executive team to inform strategic decisions, improve brand partnerships, and identify new revenue opportunities in the commerce media sector [2][10] Board Composition - The Board of Advisors includes industry veterans with extensive experience in scaling businesses and digital transformation [3] - Notable members include: - Drew Cashmore, former architect of Walmart Connect, who scaled the business beyond $2 billion [4] - Charlie Cole, a two-time turnaround CEO with expertise in digital transformation and ecommerce [5] - Shawna Hausman, who led a 300% increase in revenue at FSA Store, contributing to its acquisition [6] - Jennifer Olsen, who increased market cap by 40% at Caleres and achieved a 100% revenue increase at UNTUCKit [7] - Brian Wong, a founding partner at Ascii Ventures and co-founder of Kiip, known for his innovative marketing strategies [9] Strategic Goals - The formation of the Board is part of Fluent's strategy to leverage industry expertise for market expansion and innovation in commerce media solutions [10] - Fluent has reported triple-digit year-over-year revenue growth in its unaudited Q4 results, indicating strong momentum in the commerce media space [10][12]

Core Insights - GameStop Corp. (GME) is transitioning from a traditional retail model to a digital-centric approach, with a market capitalization of approximately $15.66 billion, driven by speculative interest and transformation efforts [1][4] - Boyd Gaming Corporation (BYD) operates in the casino and hospitality sector with a market cap of around $6.13 billion, reflecting steady growth as travel and leisure trends rebound [2][3] GameStop (GME) Analysis - GameStop has a loyal retail investor base and is seeing increased interest from institutional investors, which may stabilize its stock price and attract long-term capital [4] - The company is diversifying into higher-margin categories like collectibles and enhancing its digital capabilities, focusing on e-commerce and user experience [5][6] - GameStop is restructuring internationally, exiting lower-performing markets to concentrate on core operations [7] - Traditional revenue streams are under pressure, with declines in hardware and software sales due to shifting consumer preferences towards digital downloads and subscription models [8] - The Zacks Consensus Estimate for GME's fiscal 2025 sales suggests an 11.1% year-over-year decline, while EPS is expected to grow by 42.4% [13] Boyd Gaming (BYD) Analysis - Boyd's strategy emphasizes operational efficiency, margin expansion, and digital transformation, with strong adjusted EBITDA margins across its portfolio [9] - The company has entered the online gaming market through a partnership with FanDuel, enhancing its presence in sports betting and iGaming [10] - Boyd is executing long-term development projects, including significant investments in property enhancements and new resorts, while maintaining capital discipline [11] - The Zacks Consensus Estimate for BYD's fiscal 2025 sales indicates a 0.6% year-over-year increase, but EPS is expected to decline by 2.4% [14] Stock Performance Comparison - Over the past six months, GME shares have surged by 20.5%, while BYD has seen a modest gain of 2% [15][16] - GameStop trades at a forward P/E ratio of 74.49, significantly above the industry average of 31.17, indicating higher growth expectations and investor risk [17] - Boyd trades at a lower P/E ratio of 11.56, appealing to value-oriented investors [17] Investment Outlook - GameStop is positioned as a compelling investment for growth-oriented investors due to its digital transformation and rising institutional interest [19] - Boyd offers a conservative investment trajectory with strong fundamentals, making it attractive for income-focused or risk-averse investors [20]

Deutsche Bank (DB) has embarked on a digital transformation drive, focusing on cloud migration, artificial intelligence (AI), and automation to enhance operational efficiency and client services.In sync with this, this week, DB has collaborated with International Business Machines (IBM) and finaXai, a Singapore-based AI company.DB's Partnership With IBMDB announced that it reinforced its strategic partnership with IBM through a new license agreement, providing the former with greater access to International ...

Group 1: Joint Venture and Operations - BlackRock Inc. and Jio Financial have received approval from the Securities and Exchange Board of India to start their mutual fund operations through the joint venture named Jio BlackRock Asset Management [1] - The joint venture plans to launch a variety of investment products with a "digital first" approach targeting both retail and institutional investors [1][2] - The initial investment for the joint venture is set at $150 million from each partner, aiming to democratize access to investment solutions in India [4] Group 2: Strategic Rationale and Market Opportunity - This initiative aligns with BlackRock's growth strategy to enhance its market share in both domestic and global markets, capitalizing on India's rising affluence and digital transformation [5] - The joint venture aims to reshape the investment landscape in India by providing affordable, tech-enabled options for millions of investors [4][5] Group 3: Historical Context and Future Plans - BlackRock and Jio Financial formed the joint venture in July 2023, combining BlackRock's investment expertise with Jio's local market knowledge [3] - In April 2024, both entities expanded their collaboration to establish a wealth management and broking business in India, targeting the growing retail investor base [4]

Core Viewpoint - HSBC is focusing on an Asia-centric growth strategy while Santander is reinforcing its presence in Europe and the Americas, leading to a comparison of their investment opportunities [2][22]. HSBC Overview - HSBC is intensifying its Asia-focused strategy, aiming to become a leading wealth manager for high-net-worth clients in Asia, which constitutes over half of its operations [3]. - The bank is expanding its wealth business in mainland China by launching lifestyle-based wealth centers, acquiring Citigroup's retail wealth portfolio, and enhancing digital capabilities [3]. - In India, HSBC plans to open 20 new branches, expanding from 26 branches in 14 cities, to capture the projected 50% growth in the ultra-high-net-worth population by 2028 [4]. - HSBC announced a $1.5 billion cost-saving plan tied to organizational simplification, with upfront charges estimated at $1.8 billion by 2026 [5]. - The bank is divesting operations in several countries, including the U.S., Canada, and Argentina, to sharpen focus and improve returns [6]. - Revenue generation has been subdued due to a challenging macroeconomic environment, with weak loan demand impacting top-line growth [7]. Santander Overview - Santander is streamlining operations and reallocating resources to strengthen its presence in high-growth markets across Europe and the Americas [8]. - The bank sold a 49% stake in its Polish banking unit, expecting to temporarily exceed its CET1 capital ratio target of 12-13% and plans to reinvest strategically [8]. - Approximately €3.2 billion in capital released from the sale will be returned to shareholders through buybacks, supporting a €10 billion buyback target for 2025-2026 [9]. - Santander plans to close around 20 retail branches in the U.S. to align with the shift to digital banking, supporting the expansion of its digital platform, Openbank [10]. - The One Transformation program aims to drive digitalization and operational efficiency, keeping Santander on track to meet its 2025 targets of €62 billion in revenues [11]. Earnings Estimates Comparison - HSBC's earnings estimates for 2025 and 2026 indicate growth of 5.1% and 3%, respectively, with recent revisions showing mixed trends [12]. - In contrast, Santander's earnings estimates suggest increases of 15.7% for 2025 and 7% for 2026, with upward revisions over the past month [14]. Price Performance and Valuation - Year-to-date, Santander's shares have increased by 76.6% on the NYSE, while HSBC's shares have gained 19.6% [16]. - HSBC is trading at a price/tangible book (P/TB) of 1.06X, higher than its five-year median of 0.75X, while Santander is at 1.36X, above its five-year median of 0.71X [18]. - HSBC's return on equity (ROE) stands at 12.55%, slightly above Santander's 12.26%, indicating efficient use of shareholder funds [20]. Investment Outlook - Santander is viewed as the better investment opportunity due to its stronger near-term earnings outlook and superior stock performance [22]. - HSBC's pivot to Asia and wealth management could yield significant long-term returns, but current revenue growth and earnings performance raise concerns [26].

Market Overview - U.S. stock markets have faced a setback in 2025 following a significant bull run in 2023 and 2024, attributed to overstretched valuations, sticky inflation, weak economic data, geopolitical conflicts, and concerns over the Trump administration's trade policies [1] - The technology sector has been the most affected, particularly AI-focused stocks, due to the Federal Reserve's uncertainty regarding rate cuts, recession fears, and competition from low-cost Chinese AI platforms [2] Nasdaq Composite Performance - The tech-heavy Nasdaq Composite is down 0.4% year to date, although some technology stocks listed on the Nasdaq have achieved double-digit returns [3] Stock Picks - Selected stocks with potential for double-digit returns include CyberArk Software Ltd. (CYBR), Lam Research Corp. (LRCX), and monday.com Ltd. (MNDY), all carrying favorable Zacks Ranks [3][4] CyberArk Software Ltd. (CYBR) - CyberArk is benefiting from rising demand for cybersecurity solutions due to increasing data breaches and digital transformation strategies [7] - The company has a strong presence across various sectors, which helps mitigate the impact of softening IT spending, and is shifting towards software-as-a-service and subscription models to drive growth [8] - CyberArk's expected revenue and earnings growth rates are 31.9% and 25.1%, respectively, with a short-term price target indicating a potential upside of 30.6% from its last closing price of $382.81 [11][12] Lam Research Corp. (LRCX) - Lam Research is capitalizing on strengths in 3D DRAM and advanced packaging technologies, with a rebound in its System business due to improving memory spending [13] - The company is well-positioned to benefit from an expected $100 billion in wafer fab equipment spending in 2025, driven by increased investments in foundry/logic, DRAM, and NAND [14] - Lam Research's expected revenue and earnings growth rates are 22.2% and 33.4%, respectively, with a price target suggesting a maximum upside of 48.8% from its last closing price of $83.94 [15] monday.com Ltd. (MNDY) - monday.com develops cloud-based software applications and provides various work management solutions across multiple sectors [16][17] - The company has an expected revenue growth rate of 25.6% and earnings growth rate of 6.3%, with a price target indicating a potential upside of 50.5% from its last closing price of $299.11 [17][18]

Less than 3 years after its arrival to the region, Globant confirms its bet for Middle East, with its first regional HQ and an ambitious expansion plan The global digital transformation company, already partnering with the most significant Giga-projects in the region, expects this hub in the heart of a growing Saudi Arabia to serve as a platform to export talent and best practices worldwide Globant will train local IT talent in the latest AI skills so that they can orchestrate agentic workflows for key in ...