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]

Core Viewpoint - President Trump's new tariffs on furniture, trucks, and pharmaceuticals are causing concern among companies, but Build-A-Bear has successfully navigated these challenges, resulting in significant stock performance [1][2]. Company Performance - Build-A-Bear's stock has increased by over 2,700% over the past five years, outperforming major tech companies like Palantir, Nvidia, and Microsoft [2]. - The company is on track for its fifth consecutive year of record revenue and profitability, showcasing resilience in a challenging retail environment [7]. Brand Strength and Strategy - Build-A-Bear has a powerful brand with 96% unaided awareness and strong customer affinity, allowing it to monetize its brand across various revenue streams [3]. - The company has expanded its presence beyond traditional mall retailing into hotels and theme parks, and it operates in 32 countries [3][4]. Tariff Exposure Management - Build-A-Bear's exposure to tariffs is estimated to be around $11 million for the current year, despite sourcing many products from countries affected by the tariffs [5]. - The company has managed to frontload inventory before tariffs impacted the toy industry, allowing it to mitigate potential losses [6]. Financial Health - Build-A-Bear has a clean balance sheet with good cash flow and no debt, providing flexibility to navigate financial challenges [10]. - The company has diversified its product portfolio, allowing for strategic price increases while maintaining an approachable entry-level price point for consumers [10][11]. Customer Engagement - Build-A-Bear offers unique experiences, such as the "pay your age" birthday promotion, which enhances customer engagement and loyalty [12]. - The brand has evolved to cater to a broader audience, including adults celebrating various life events, thus expanding its market reach [14].