Build-A-Bear Boasts Strong Earnings: 'Most Profitable Q3 In Our History,' CFO Says

Build-A-Bear Workshop, Inc. BBW shares are trading higher after the company reported a third-quarter 2024 revenue growth of 11% year-over-year to $119.43 million.

The toy and stuffed animal franchise beat the analyst consensus of $113.4 million.

Consolidated e-commerce demand, including online orders fulfilled from the warehouse or stores, increased by 1.3%. Quarterly commercial and international franchise revenues were a combined $9.9 million and upped 38.8% year-over-year (YoY).

See Also: Look Back On Build-A-Bear Workshop’s Q2 Earnings Beat

Quarterly EPS was 73 cents (+37.7% YoY), beating the Wall Street View of 65 cents.

The company added 17 new global experience locations in the quarter, including one corporately managed, 16 partner-operated, and three franchise locations.

By the end of the quarter, Build-A-Bear had 565 global locations across its corporately managed, partner-operated, and franchise models.

Inventory at year-end was $70.8 million, reflecting an increase of 9.8% YoY. At the end of the third quarter, cash and cash equivalents rose by 16.8% to $29 million, up from $24.8 million last year.

The company also repurchased more than 6% of our shares outstanding over the past year.

Build-A-Bear CFO Voin Todorovic called it “the most profitable third quarter in our history,” even though web demand performs below expectations.

Build-A-Bear has also “broadened” its international footprint to over 20 countries, according to CEO Sharon Price John.

The company spent $4.8 million in the quarter to repurchase 147,917 shares and paid a $2.7 million dividend.

2024 Outlook: Build-A-Bear Workshop expects total revenue to be between $489 million and $495 million.

Pretax income is anticipated to range from $65 million to $67 million, in line with the prior year.

The company projects net new unit growth of at least 65 locations, with capital expenditures between $18 million and $20 million and depreciation and amortization ranging from $15 million to $16 million.

Price Action: BBW shares are up 0.21% at $38.00 premarket at the last check Thursday.

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