Company Turnaround & Financial Performance - Build-A-Bear experienced a significant turnaround after 2013, with the share price increasing by over 1,150% since December 2020 [2] - In 2025, the company reported its most profitable nine months in history, although revenue missed Wall Street expectations [7][8] - Build-A-Bear anticipates full-year revenue to surpass $500 million (half a billion) for the first time [8] - Approximately 40% of Build-A-Bear's business now comes from adults, doubling since 2013 [9] - Build-A-Bear's franchising business boasts operating margins between 20% and 30% [14] Strategic Adaptations & Growth Initiatives - Build-A-Bear revamped its stores, closed underperforming locations, and expanded into tourist hubs, theme parks, and department stores [8] - The company invested in e-commerce around 2015, developing a mobile-first website with virtual workshops and a loyalty program [10][11] - Build-A-Bear shifted order fulfillment to its stores, reducing order times from weeks to days [11] - The company expanded internationally, with 651 workshops in 33 countries as of 2025 [13] Challenges & Risk Factors - Tariffs, primarily due to importing over 90% of products from China and Vietnam, have negatively impacted Build-A-Bear's gross profits [3][15] - A third quarter 2025 gross profits took a $4 million hit, and its stock fell more than 15% following the news [3] - Build-A-Bear has selectively increased prices to offset tariff costs while introducing lower-priced items like the Mini Beans collection [16]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 grew nearly 3% to almost $123 million, while pre-tax income declined by $2 million to nearly $11 million, impacted by approximately $4 million in negative tariff effects [5][20] - Year-to-date revenue increased over 8% to over $375 million, with pre-tax income rising by 15% to almost $46 million, also inclusive of about $5 million in negative tariff impact [5][20] - Gross margin was 53.7%, a decline of 40 basis points compared to last year, primarily due to tariffs, which reduced gross profit by about $4 million in the quarter [23][24] Business Line Data and Key Metrics Changes - Direct-to-consumer sales saw a decline of 10.8% in e-commerce demand, primarily due to challenging comparisons from a strong license product launch last year [22] - Commercial revenue, mainly from wholesale sales, grew 4.2% for the quarter and 15.3% year-to-date, with expectations of over 20% growth for the year [23][24] Market Data and Key Metrics Changes - Domestic store traffic outperformed the national benchmark, although there was a slight transaction decrease driven by a 1% decline in traffic [21] - The company opened 24 net new experience locations, with 70% of those outside the United States, bringing the total to 651 locations across 33 countries [7][8] Company Strategy and Development Direction - The company aims to expand its experiential retail footprint, advance digital transformation, and leverage brand equity beyond workshops while returning capital to shareholders [6][27] - The introduction of the Mini Beans collection has been successful, with nearly 3 million units sold and over 60% growth in Q3 alone, indicating a strategy to reach broader markets [15][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaffirming full-year guidance, expecting revenue to exceed $500 million for the first time in company history despite ongoing tariff headwinds [3][5] - The company is focused on executing strategic objectives while managing external challenges, including tariffs and inflationary pressures [27] Other Important Information - The company returned over $26 million to shareholders through dividends and buybacks, contributing to more than 24% EPS growth for the first three quarters of the fiscal year [5][24] - The company has maintained significant flexibility with about $70 million remaining under its board-approved repurchase authorization [24] Q&A Session Summary Question: What are the opportunities to reduce tariff impacts next year? - Management indicated that while tariffs will continue to impact, they are working on mitigating costs through partnerships and selective price increases [30][32] Question: How is the diversification in pricing affecting customer engagement? - Management noted that diversification allows for appealing to different customer segments, with 40% of sales coming from teens and adults, enhancing pricing flexibility [35][38] Question: What trends are seen with Mini Beans sales? - Mini Beans have shown strong sales growth, with plans to expand distribution beyond workshops, indicating a successful product line [45][46] Question: How does promotional activity compare year over year? - Management stated that promotional activity has been managed more stringently, resulting in lower discount rates while focusing on enhancing customer experience [43][44] Question: How does the company leverage its presence in malls? - Management highlighted that having multiple locations in major malls enhances foot traffic and strengthens partnerships with mall operators [57][59]

Financial Performance - Build-A-Bear's total revenue in 2024 was $496 million, a 47% increase compared to 2019[16] - Net retail sales reached $460 million in 2024, up 42% from 2019[16] - Third-party revenue grew significantly by 140% to $36 million in 2024 compared to 2019[16] - EBITDA surged by 430% to $81 million in 2024, with a margin of 163%[16] - Free cash flow increased by 199% to $28 million in 2024[16] - The company's ROIC was 33% in 2024[16] Business Diversification and Expansion - Approximately 40% of sales are to teens and adults[20] - Web demand has grown by approximately 110% from 2019 to 2024[20] - Birthdays account for approximately 30% of sales[23] Store Footprint Evolution - The company had 375 corporate stores and 276 third-party locations in 33 countries as of Q3 2025[23] - Partner-operated stores have increased from 39 in 2017 to 138 in 2024[25] - Franchise stores accounted for 17% of the store count mix in 2024[27] Future Outlook - Fiscal year 2025 guidance projects mid-single-digit to high-single-digit revenue growth[87] - The company anticipates pre-tax income between $62 million and $70 million in fiscal year 2025[87] - Build-A-Bear plans to add at least 60 net new units in fiscal year 2025[87]

We are joined by bloomberg host Romaine Bostick who spoke with the retailer's ceo tony spring. Earlier this morning for me. Thanks for joining us, danny.What did you do. Any shopping. I did, but not at Macy's.I got to be honest. Yeah, well, I mean, the interesting thing I mean, I did ask him a lot about what foot traffic was. Was there an actual increase.He did say he was happy with foot traffic, but he also seemed to imply here that a lot of the revenue gains that they've seen in this most recent quarter w ...

Market Trends & Outlook - The luxury sector is experiencing a split, with ultra-luxury performing well while middle and bottom tiers decline [4][5] - The aspirational luxury buyer has largely disappeared, impacting soft luxury goods like leather goods, handbags, shoes, and clothing [5][6] - The luxury sector is expected to be globally flat in 2025, with potential for only slight growth [3] - There are 50 million fewer luxury consumers than two years ago [4] Pricing & Consumer Behavior - Doubling or tripling prices of luxury goods without noticeable improvements has negatively impacted sales [9] - Consumers are struggling to reconcile the high prices of luxury goods with their perceived value [14] - Younger generations are increasingly prioritizing experiences over conspicuous consumption and status goods [12] Company Strategy & Adaptation - Luxury companies, particularly those focused on logos, may face challenges [11] - Hard luxury goods companies are exploring experiential retail to adapt to changing consumer preferences [12][13] - Luxury companies need to revert to their original focus on providing exceptional in-store experiences [13][14]

Holiday Shopping Trends - Luxury goods are expected to see a recovery during the Black Friday season, with an increase in consumer spending [1] - In-store shopping is making a comeback, with most shoppers planning to shop both in-store and online [2] - Consumers want to touch and feel products, experience retail, and receive personalized help in-store [2] - Hybrid shopping, across multiple channels, is becoming the norm, with consumers using AI in their shopping journeys [3] AI in Retail - Approximately 50% of consumers plan to use AI during the holiday season, primarily for initial shopping research and inspiration [4] - Large language models are changing the potential shopping journey, requiring retailers to strategize for AI search [7] Retail Challenges and Strategies - Retailers have largely settled into a "new norm" regarding tariffs, absorbing some costs into their margins and passing some onto consumers [8][9] - Retailers are working to meet consumer expectations for discounts and promotions during the holiday season [9] Buy Now Pay Later (BNPL) - The Buy Now Pay Later trend has stabilized, balancing with the desire for in-store shopping benefits [11]

Core Insights - Dick's Sporting Goods is expanding its retail footprint by opening larger "House of Sport" stores, which range from 120,000 to 150,000 square feet, significantly larger than traditional stores [3][4] - The company aims to create a unique shopping experience that can compete with other retailers, focusing on experiential offerings and a wide range of products [4][12] Expansion Strategy - The first House of Sport opened in 2021, with plans to have 35 locations by the end of the year and up to 100 by fiscal 2027, in addition to over 850 existing stores [9] - Each House of Sport store generates approximately $35 million in annual sales with an EBITDA margin of around 20% [6] Market Positioning - The company is targeting the youth sports market, which is valued at $40 billion annually, with parents spending an average of $1,016 per child for primary sports in 2024, a 46% increase from 2019 [22] - Dick's Sporting Goods has experienced 12 consecutive quarters of comparable sales growth, attributed to a strong replacement cycle and product innovation [23] Product Strategy - House of Sport stores feature a wider selection of footwear and exclusive merchandise, including Nike products not available elsewhere [5][13] - The retailer is also showcasing newer, premium brands and has a rotating co-lab space for testing products [14] Financial Performance - Despite initial skepticism from Wall Street regarding the expansion and a recent $2.4 billion acquisition of Foot Locker, Dick's shares have outperformed other athletic brands [20] - The company reported earnings before taxes of 14% in its most recent quarter, indicating strong financial health [6] Management Philosophy - The company's leadership emphasizes a culture of innovation and risk-taking, with a focus on continuous improvement and adaptability [24][25]

Core Insights - Dalton Park, the largest outlet shopping destination in the North East, achieved remarkable success with its recent Clinique Beauty Pop Up, significantly enhancing sales, customer engagement, and foot traffic [2][3]. Sales Performance - The Clinique Beauty Pop Up, held from October 7th to 12th, 2025, resulted in over 1,800 skincare consultations and 2,020 new database sign-ups, leading to a +282% increase in Clinique product sales [3]. - Overall sales for The Cosmetics Company Store surged by +342%, making it one of the top two performing sites nationally for the brand [4]. Customer Engagement - The activation achieved a 91% customer sign-up rate, expanding the brand's customer database for future marketing efforts [4]. - The event doubled Dalton Park's previous best sales week for The Cosmetics Company Store, surpassing the record set during the peak Christmas trading period in 2019 [4]. Foot Traffic and Category Growth - The pop-up had a positive impact on overall foot traffic, which increased by +15.8%, marking the highest footfall of the year [5]. - The Health & Beauty category experienced a significant growth of +116%, indicating rising consumer demand in this sector [5]. Industry Commentary - Nicky Lovell, head of outlets and retail business development at Global Mutual, highlighted the success of the Clinique Pop Up as a demonstration of the effectiveness of experiential retail, setting a new standard for future brand activations at Dalton Park [6].

Core Insights - Majestic, the UK's largest specialist wine retailer, has opened its first new store in Cornwall in over 13 years, marking a significant step in its expansion plans across the UK [1][2] Store Details - The new store in Truro is Majestic's second in Cornwall, following the Falmouth location opened in August 2012 [2] - The store occupies a 5,100 sq ft space, previously an Iceland supermarket, and features over 1,200 wines, including a dedicated area for 72 Fine Wines, as well as beers, spirits, and snacks [3] Customer Experience - Majestic offers free wine tastings seven days a week at the in-store Tasting Counter, with staff trained through the Wine and Spirit Education Trust (WSET) providing expert advice [4] - Additional services include free glass hire, bespoke wedding tastings, and a 'No Quibble Guarantee' for wine returns [5] E-commerce and Local Services - Online shoppers can access Majestic's full range with free next-day delivery and a 'Shop Local' option for real-time stock availability at the Truro store [6] B2B Expansion - The new store will support Majestic's B2B division, Majestic Commercial, which supplies wines to over 3,300 hospitality venues across the UK, including notable clients like Manchester City Football Club [7] Strategic Growth - The Truro launch is part of a broader expansion strategy for Majestic Wine Group, which includes the recent acquisition of Vagabond and plans for new urban winery locations [8][9] - Since its acquisition by Fortress Investment Group in December 2019, Majestic has opened over 20 new stores and significantly increased sales in its commercial business [9] Management Perspective - The managing director expressed excitement about the Truro location, highlighting the opportunity to serve the local wine-loving community [10]

Core Insights - Brandart, an Italy-based firm, is transforming from a leader in premium packaging to a global one-stop platform for visual merchandising and retail event displays [1] Company Developments - Brandart has acquired Terotecna, a lighting scenography firm known for its work in fashion events, although financial details of the acquisition were not disclosed [2] - The acquisition of Terotecna is part of Brandart's growth strategy to lead in the retail installation experience sector, alongside visual merchandising and packaging [5] - Earlier in the year, Brandart also acquired Atelier Archiand and ABC Lab, enhancing its capabilities in beauty, tech, travel retail, and interior design [6] Technological Advancements - Terotecna's facility is highly technological, featuring advanced printers, robotics, and anthropomorphic robots for cutting, showcasing the Apulia region's expertise in lighting [3] Collaborative Projects - Brandart and Terotecna collaborated on notable retail displays, such as Loro Piana's "Workshop of Wonders" at Harrods, which featured an elaborate light display [4] Strategic Positioning - Previously, Brandart operated as a procurement entity with over 150 global partners and regional offices in Paris, New York, and Guangzhou, working closely with luxury brands like Loro Piana, Bulgari, Fendi, and Dior [6]