Build-A-Bear Workshop, Inc. (NYSE:BBW) Q1 2023 Earnings Conference Call May 25, 2023 9:00 AM ET Company Participants Gary Schnierow – VP, IR and Corporate Finance Sharon Price John – President and CEO Voin Todorovic – CFO Conference Call Participants Steven Silver - Argus Research Gary Schnierow - Riverpark Capital Operator Greetings, and welcome to the Build-A-Bear Workshop’s First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer s ...

Financial Performance - Total revenues and profit continued to grow in fiscal 2022 compared to fiscal 2021, driven by initiatives and investments made prior to and during the pandemic [17]. - E-commerce sales increased by 137% in Q4 fiscal 2022 compared to Q4 fiscal 2019, reflecting the impact of key digital initiatives [17]. - A special dividend was announced on March 8, 2023, payable to all common stockholders as of March 23, 2023, reflecting confidence in the company's strategy [19]. Inventory Management - As of January 28, 2023, inventory balance was $70.5 million, a decrease of $1.3 million compared to January 29, 2022, indicating effective inventory management [23]. Retail Expansion - Over 20 new Build-A-Bear Workshop retail experience locations were opened in fiscal 2022, with plans for a net increase in North America in fiscal 2023 [18]. - Approximately 35% of total retail locations are now in non-traditional settings, such as family-centric tourist and hospitality sites [18]. Expense Management - The company plans to maintain disciplined expense management amid inflationary pressures and supply chain challenges [19]. Employment - The company employs approximately 1,000 full-time and 3,200 regular part-time employees across the U.S., Canada, the U.K., and Ireland as of January 28, 2023 [28]. Strategic Partnerships - Strategic relationships with brands like Disney and Pokémon are leveraged for marketing and merchandising opportunities, enhancing brand reach [32]. Internal Control over Financial Reporting - The Company conducted an evaluation of its internal control over financial reporting as of January 28, 2023, and concluded that it is effective [186]. - Ernst & Young LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of January 28, 2023 [186]. - There were no changes in the internal control over financial reporting during the year that materially affected its effectiveness [187]. - The internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting, but it has inherent limitations [193]. - The Company maintained effective internal control over financial reporting based on the COSO criteria [189]. - The management's evaluation of internal control included assessing the risk of material weakness and testing the design and operating effectiveness of controls [192]. - The Company’s internal control over financial reporting includes policies and procedures for maintaining accurate records and preventing unauthorized asset acquisition [193]. - The audit conducted by Ernst & Young LLP included understanding internal control, assessing risks, and evaluating the effectiveness of controls [192]. - The management's report on internal control over financial reporting is based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission [186]. - The Company acknowledges that internal controls may not prevent or detect all misstatements due to their inherent limitations [194].

Financial Data and Key Metrics Changes - Total revenues for fiscal 2022 were $468 million, a 14% increase over fiscal 2021, with pretax income rising by 22% to $62 million, marking the most profitable year in the company's history [5][6][30] - In Q4 2022, total revenues reached $145.1 million, an 11.6% increase compared to $130 million in Q4 2021, with net retail sales increasing by 10% to $138.2 million [30][31] - Gross profit margin improved to 55%, up 150 basis points from the previous year, driven by lower freight costs and better leverage of fixed occupancy expenses [31] Business Line Data and Key Metrics Changes - E-commerce sales rose by 0.9% in Q4 2022, showing sequential improvement from Q3 [30][31] - The commercial revenue segment, which includes third-party retail and licensing, increased by over 60% in 2022 compared to the prior year [17] Market Data and Key Metrics Changes - The company reported that approximately 40% of its end users are now teens and adults, expanding its addressable market beyond families with younger children [10][11] - The company opened over 20 new experience locations in 2022, contributing to organic growth from existing locations [15][19] Company Strategy and Development Direction - The company aims to continue its digital transformation, evolve experience location formats, and leverage solid financial management to drive growth and shareholder value [10][11][12] - The strategy includes expanding its licensing portfolio with popular properties and enhancing its omnichannel capabilities to improve customer engagement [24][25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth for 2023, expecting total revenues to increase by 5% to 7% and pretax income to grow by 10% to 15% compared to fiscal 2022 [36][37] - The company is optimistic about the impact of new experience locations and the ongoing recovery of the party business, which is expected to contribute positively to revenue [18][19][58] Other Important Information - The company ended fiscal 2022 with over $42 million in cash and no borrowings on its revolving credit facility, positioning it well for future investments [6][34] - A special cash dividend of $1.50 per share was declared, reflecting the company's commitment to returning value to shareholders [35] Q&A Session Summary Question: Discussion on party business ramp-up - Management noted that the party business started in April of the previous year and has not yet reached its anniversary, indicating potential for further growth [41] Question: Licensing opportunities for children's movies - Management highlighted ongoing relationships with companies expecting to premiere feature films and expressed optimism about cross-promotional opportunities with theaters [44][45] Question: Inventory management amidst licensing growth - Management emphasized the importance of controlling product from inception to sale and diversifying sourcing to manage inventory effectively [50][53] Question: Same-store sales growth expectations - Management indicated that growth in 2023 is expected to come from existing store productivity and new store openings, with a favorable comparison to the previous year [57][58]

87 R স 哈 IGR CONFERENCE 2023 FORWARD LOOKING AND CAUTIONARY STATEMENTS This presentation contains certain statements that are, or may be considered to be, "forward-looking statements" for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "inten ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q3 2022 Results Conference Call November 30, 2022 9:00 AM ET Company Participants Allison Malkin - ICR Sharon John - CEO Voin Todorovic - CFO Conference Call Participants Eric Beder - SCC Research William Zolezzi - Divisadero David Kanen - Kanen Wealth Management Operator Greetings. Welcome to the Build-A-Bear Workshop Third Quarter 2022 Earnings Call. At this time, all participants will be in listen-only mode. A brief question-and-answer session will follow the forma ...

Build-A-Bear Workshop, Inc. (NYSE:BBW) Q2 2022 Earnings Conference Call September 1, 2022 9:00 AM ET Company Participants Allison Malkin – Managing Director-ICR Sharon Price John – Chief Executive Officer Voin Todorovic – Chief Financial Officer Conference Call Participants Eric Beder – SCC Research David Kanen – Kanen Wealth Management Gary Schnierow – RiverPark Capital Jeff Feinberg – Feinberg Investments Operator Greetings, and welcome to the Build-A-Bear Workshop Second Quarter and First Half 2022 Earni ...