Earnings Per Share (EPS) of $0.733 exceeded the estimated $0.65, marking a significant year-over-year improvement.
Despite missing revenue estimates, revenue grew by 11% compared to the same period last year.
Build-A-Bear plans to expand its global presence with at least 65 new experience locations.
Build-A-Bear Workshop, Inc. (NYSE: BBW) is a specialty retailer known for its unique interactive experience where customers can create personalized stuffed animals. The company operates globally, with a focus on expanding its presence through new experience locations. Build-A-Bear competes with other toy retailers and companies offering customizable products.
On December 5, 2024, Build-A-Bear reported earnings per share (EPS) of $0.733, exceeding the estimated $0.65. This marks a significant improvement from the $0.53 EPS recorded in the same quarter last year. The earnings surprise for this quarter stands at 4.29%, highlighting the company’s ability to outperform expectations. Build-A-Bear’s stock surged to an all-time high after the earnings release, rising by 18% as of noon ET.
Build-A-Bear generated revenue of approximately $119.43 million, which was below the estimated $153.72 million. However, this figure still represents an 11% increase from the $107.56 million reported in the same period last year. The company exceeded the Zacks Consensus Estimate by 7.02%, demonstrating strong performance in the retail sector. Over the past four quarters, Build-A-Bear has surpassed consensus EPS estimates twice and revenue estimates twice.
The company’s financial health is further supported by its price-to-sales ratio of about 1.24 and an enterprise value to sales ratio of around 1.38. These metrics suggest that investors are willing to pay a reasonable amount per dollar of sales, reflecting confidence in Build-A-Bear’s growth potential. The debt-to-equity ratio of approximately 0.76 indicates a moderate level of debt relative to equity, while a current ratio of about 1.45 suggests a healthy level of short-term assets to cover liabilities.
Build-A-Bear’s strong performance has allowed it to return $31.3 million to shareholders through share repurchases and quarterly dividends in the first nine months of fiscal 2024. The company plans to expand its global presence by increasing net new unit growth to at least 65 experience locations, up from the previous target of 50 locations. This strategic move aims to capitalize on the brand’s power and the evolving business model, as highlighted by Sharon Price John, President and CEO of Build-A-Bear Workshop.
