Retail Expansion - In fiscal 2024, the company opened a net of 64 new Build-A-Bear Workshop retail experience locations, with expectations of at least 50 new locations in fiscal 2025[26]. - The company has shifted to non-traditional retail locations, with over a third of total stores now in such settings, including family-centric tourist sites[26]. - The company’s retail stores also function as mini distribution centers, facilitating efficient fulfillment of digital demand through programs like "Buy Online, Ship From Store"[34]. Digital Transformation - The company has accelerated its digital transformation initiatives, enhancing marketing and loyalty programs to increase consumer engagement and expand its total addressable market[26]. Financial Performance - The company’s cash flows have improved significantly, allowing for increased support for key initiatives and returning capital to shareholders through dividends and share repurchases[26]. - The company’s operating margins have remained robust despite inflationary pressures, allowing for disciplined expense management and continued investment in growth initiatives[26]. Inventory and Currency Risk - As of February 1, 2025, the company's inventory balance was $69.8 million, an increase of $6.3 million compared to February 3, 2024[30]. - The company purchases all inventory in U.S. dollars, exposing it to currency risk from fluctuations in foreign currencies[237]. - A hypothetical 10% decrease in current foreign currency exchange rates would not have a material effect on the company's financial position or results of operations[238]. - Foreign currency transaction gains and losses have not been material to the company's financial statements to date[238]. - The company does not have a formal hedging program with respect to foreign currency[238]. - International sales are primarily denominated in Canadian dollars, Euros, and British pounds, which may affect pricing and revenue[237]. - The company’s foreign subsidiaries buy inventory in their functional currency, which can increase costs if their currencies depreciate against the U.S. dollar[237]. - Translation adjustments from foreign operations are reported in accumulated other comprehensive income[238]. - The company’s financial results are reported in U.S. dollars, which may be impacted by changes in currency exchange rates[236]. Employee Information - The company employs approximately 1,000 full-time and 4,100 part-time employees across the U.S., Canada, the UK, and the Republic of Ireland as of February 1, 2025[35]. Licensing and Brand Relationships - The company has developed licensing relationships with major brands such as Disney, NBCUniversal, and Pokémon to enhance its product offerings and marketing opportunities[49]. - The company’s strategic focus includes expanding product offerings and licensing relationships to drive retail performance and leverage brand equity[25]. Regulatory Compliance - The company is subject to the reporting requirements of the Securities Exchange Act of 1934 and files periodic reports with the SEC[50]. Risk Factors - For detailed risk factors that could affect results, refer to "ITEM 1A. RISK FACTORS" in the Annual Report[239].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to fin ...

I'm sure when it comes to Build-A-Bear Workshop, Inc. (NYSE: BBW ), investors aren't necessarily looking at the Consumer Discretionary sector ( XLY ) at this very moment due to rising economic uncertainty.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. ...

Build-A-Bear (BBW) closed the last trading session at $38.84, gaining 1.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $54.33 indicates a 39.9% upside potential.The average comprises three short-term price targets ranging from a low of $50 to a high of $58, with a standard deviation of $4.04. While the lowest estimate indicates an increase of 28.7% from the current price level, ...

Financial Data and Key Metrics Changes - Total revenues increased by 3.6% to over $496 million, with pretax income growing by 5.1% to more than $67 million [10][41] - The company returned $42 million in capital to shareholders, including a 10% increase in quarterly dividends to $0.22 per share [35][36] Business Line Data and Key Metrics Changes - Net retail sales for Q4 were $139.5 million, up 4.7%, while commercial revenue rose 20.5% year-over-year [37][38] - The gross margin improved to 56.6%, reflecting a slight expansion in both retail and commercial gross margins [39] Market Data and Key Metrics Changes - Store traffic increased by 3%, significantly outpacing the national average decline of nearly 1% [38] - The company expanded its global footprint with 24 new locations, including 30 partner-operated locations in ten new countries [18][21] Company Strategy and Development Direction - The company focuses on three strategic initiatives: expanding experiential retail locations, advancing digital transformation, and investing in brand strength while returning capital to shareholders [11][26] - Plans for 2025 include opening at least 50 new net locations, primarily partner-operated, to enhance global brand reach [21][45] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating mid-single-digit revenue growth but potential challenges in pretax income due to tariff concerns [8][46] - The toy industry is viewed as recession-resistant, with a significant portion of sales driven by birthdays and collectors [56][100] Other Important Information - The company has reduced its dependency on China, expecting less than 50% of inventory shipped to North America to come from there in 2025 [70][112] - The introduction of a new retail experience in Orlando, Florida, is planned for 2026, aimed at capitalizing on tourist traffic [19][20] Q&A Session Summary Question: Overall consumer environment and business reaction to a slowdown - Management noted positive quarter-to-date results, with traffic outpacing national averages, indicating resilience in the toy industry [54][56] Question: Progress in e-commerce - Management acknowledged opportunities for improvement in e-commerce and emphasized efforts to integrate omnichannel capabilities [58][62] Question: Tariff impacts and inventory management - The company is proactively managing inventory purchases to mitigate potential tariff impacts and expects to maintain a diversified supply chain [68][70] Question: Revenue guidance and potential offsets - Management provided guidance for mid-single-digit revenue growth, citing macro-level headwinds as potential offsets to a more optimistic outlook [132]

Core Viewpoint - Build-A-Bear (BBW) reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and showing an increase from $1.34 per share a year ago, indicating a positive earnings surprise of 4.61% [1][2] Financial Performance - The company achieved revenues of $150.45 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.55% and showing a slight increase from $149.28 million year-over-year [2] - Over the last four quarters, Build-A-Bear has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Build-A-Bear shares have declined approximately 22.9% since the beginning of the year, contrasting with the S&P 500's decline of 4.8% [3] - The current Zacks Rank for Build-A-Bear is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.84 on revenues of $116.3 million, while the estimate for the current fiscal year is $3.88 on revenues of $500.3 million [7] - The trend of estimate revisions for Build-A-Bear is currently mixed, which may change following the recent earnings report [6] Industry Context - The Retail - Miscellaneous industry, to which Build-A-Bear belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Fourth quarter revenues reached $150.4 million, a 0.8% increase on a GAAP basis, and a 5.7% increase when excluding the extra week of operations in the fourth quarter of 2023[4] - Pre-tax income for the fourth quarter was $27.5 million, reflecting a 5.1% year-over-year increase, and a 15.8% increase when excluding the extra week of operations in the fourth quarter of 2023[4] - For fiscal year 2024, total revenues were $496.4 million, a 2.1% increase on a GAAP basis, and a 3.6% increase when excluding the extra week of operations in fiscal 2023[12] - Total revenues for the 52 weeks ended February 1, 2025, were $496,404 thousand, compared to $486,114 thousand for the 53 weeks ended February 3, 2024[29] - Net income for the 13 weeks ended February 1, 2025, was $21,678 thousand, compared to $22,273 thousand for the same period in 2024, reflecting a decrease of 2.7%[27] - Adjusted net income for the year ended February 1, 2025, was $51,349 million, up from $49,546 million in the previous year, representing a growth of 3.6%[37] - Adjusted net income per diluted share (adjusted EPS) increased to $3.77 in 2025 from $3.42 in 2024, marking an increase of 10.3%[37] - Net income for Q1 2025 was $21,678 million, slightly down from $22,273 million in Q1 2024, a decrease of 2.7%[37] Shareholder Returns - The company returned $42.0 million to shareholders in fiscal 2024 through share repurchases and dividends, including a 10% increase in quarterly dividend to $0.22 per share[4] Growth and Expansion - Build-A-Bear opened 64 net new retail units in fiscal 2024, expanding its international presence to over 25 countries[2] - The company had net new unit growth of 24 global experience locations in the fourth quarter, totaling 589 locations at year-end[9] - The company expects mid-single-digit revenue growth and pre-tax income to range from a low-single-digit decline to low-single-digit growth for fiscal 2025[17] Capital Expenditures - Capital expenditures for fiscal 2025 are projected to be between $20 million and $25 million[17] - Capital expenditures for the 13 weeks ended February 1, 2025, were $9,746 thousand, an increase from $7,171 thousand in the prior year[33] Cash and Assets - At fiscal year-end, cash and cash equivalents totaled $27.8 million, down from $44.3 million the previous year, impacted by higher inventory investment[10] - Total current assets decreased to $126,298 thousand as of February 1, 2025, from $127,772 thousand a year earlier[31] E-commerce and Franchise Performance - Consolidated e-commerce demand decreased by 11.6% in the fourth quarter, while commercial and international franchise revenues increased by 20.5%[8] - Net retail sales accounted for $139,499 thousand, representing 92.7% of total revenues for the 13 weeks ended February 1, 2025[27] Profitability Metrics - Consolidated gross profit for the 13 weeks ended February 1, 2025, was $85,144 thousand, up from $84,217 thousand in the previous year[27] - The company reported a retail gross margin of 56.9% for the 13 weeks ended February 1, 2025, slightly up from 56.7% in the previous year[33] - Adjusted income before income taxes for Q1 2025 was $27,486 million, compared to $23,729 million in Q1 2024, reflecting a year-over-year increase of 15.5%[37] - EBITDA for Q1 2025 was reported at $31,138 million, compared to $29,861 million in Q1 2024, indicating a growth of 4.3%[38] - Adjusted EBITDA for the year ended February 1, 2025, was $81,052 million, up from $76,637 million in 2024, reflecting a year-over-year increase of 5.0%[38] Tax and Interest Expenses - The company recorded a valuation allowance of $436 million on its net deferred tax assets in the UK for the year ended February 1, 2025[37] - The interest expense for the year ended February 1, 2025, was $(861) million, compared to $(929) million in 2024, showing a decrease of 7.3%[37] Other Financial Impacts - The impact of the 53rd week on income was estimated at $(2,420) million, affecting both EBITDA and adjusted EBITDA calculations[38] - The company undertook international restructuring, which had a tax impact of $1,102 million in the previous year[37]

Core Insights - Build-A-Bear Workshop is set to launch a new multi-level retail experience at ICON Park in Orlando, Florida, in the first half of 2026, marking a significant expansion in a major tourist destination [1][3] - The company is collaborating with design firm Chute Gerdeman to create an immersive retail space that enhances its existing experiential retail concept [2] - This initiative is part of a broader strategic evolution aimed at expanding Build-A-Bear's global presence, particularly in tourist-heavy areas, building on its nearly 600 locations [3] Company Strategy - The new location will feature a creative interpretation of Build-A-Bear's "make your own" teddy bear concept, targeting a diverse consumer base, including children and adults, with the latter representing 40% of sales [4] - The design will include a prominent facade to attract visitors, leveraging its location on International Drive, close to major attractions like Walt Disney World and Universal's Theme Parks [4] Market Position - ICON Park is recognized as a leading location for entertainment, attracting millions of visitors annually, which aligns with Build-A-Bear's strategy to enhance its brand visibility and consumer engagement [6][9] - The partnership with ICON Park reflects the appeal of doing business in Orange County, emphasizing the potential for high consumer traffic and engagement [5] Financial Overview - Build-A-Bear Workshop reported total revenues of $486.1 million for fiscal 2023, indicating a strong financial position to support its expansion efforts [5]

Core Concept - Build-A-Bear Workshop is launching a new collection of weighted plush toys called Heartwarming Hugs to celebrate National Hug Day, emphasizing the emotional connection and comfort that hugs provide [1][2][3]. Product Launch - The Heartwarming Hugs collection includes a bear and a sloth, each weighing three pounds and featuring a removable heart that can be warmed for added comfort [1][3]. - The collection aims to provide a sense of warmth and connection for all ages, promoting the benefits of hugging, such as stress reduction and increased oxytocin levels [2]. Marketing and Promotions - To celebrate the launch, Build-A-Bear is offering free shipping on online purchases of the Heartwarming Hugs plushes from January 21 to 23, 2025 [3]. - The Heartwarming Hugs Bear will be available in stores and online, while the Heartwarming Hugs Sloth will be exclusively available online [3]. Company Background - Build-A-Bear Workshop has been a multi-generational brand since 1997, focusing on creating personalized stuffed animals and fostering emotional connections with consumers [5]. - The company reported consolidated total revenues of $486.1 million for fiscal 2023, highlighting its strong market presence and growth [5].

Group 1 - Build-A-Bear Workshop has significantly outperformed the S&P 500, with an increase of over 80% in the past year [1]