Workflow
Analysts' Top 3 Retail Picks Gearing Up for a Strong 2025
BBWBuild-A-Bear Workshop(BBW) MarketBeat·2024-12-23 12:16

Summary of Key Points Core Viewpoint - Build-A-Bear Workshop has shown strong growth in revenue and earnings, while Haverty Furniture Companies has faced significant declines in performance, but both companies have potential for future growth [4][6][12]. Build-A-Bear Workshop - Build-A-Bear reported a strong third quarter with 119millioninrevenueandanEPSof73cents,exceedinganalystexpectations[4].Thecompanyhasopened17newlocations,includinginternationalones,andplanstoincreaseitstotallocationsbyabout25119 million in revenue and an EPS of 73 cents, exceeding analyst expectations [4]. - The company has opened 17 new locations, including international ones, and plans to increase its total locations by about 25% by 2025 [4]. - New product launches, such as the Mini Beans collection, have contributed to customer growth [4]. - Despite strong performance, Build-A-Bear's web sales have underperformed, leading to a narrowing of full-year revenue guidance [5]. - The company has a Buy rating with a price target of 52.50, indicating an upside potential of nearly 22% [6]. Haverty Furniture Companies - Haverty has experienced a 1-year total return of -37%, attributed to falling revenues, profits, and gross margins [2]. - The company announced a leadership change with Steven Burdette becoming CEO, who previously helped the company achieve significant net income growth during the pandemic [6]. - Haverty's design business reported a 19% year-over-year growth, and the company has a strong cash position of over $121 million with no funded debt [7]. - The firm plans to open three new stores in the fourth quarter and has a dividend yield of 5.78% [7]. Retail Industry Outlook - The retail industry may see transformative changes in 2025, with opportunities for building customer loyalty amid increasing competition and potential supply chain issues [11]. - Maintaining momentum beyond the holiday season will be crucial for retailers, including Build-A-Bear and Haverty [12].