Build-A-Bear Workshop Shares Rally After Strong Q2, Raised FY21 Outlook

Build-A-Bear Workshop Inc BBW reported second-quarter FY21 revenue growth of 134.7% year-on-year to $94.73 million, beating the analyst estimate of $81 million. Revenues increased 19.6% from Q2 FY19.
Retail sales rose 132.1% Y/Y, and e-commerce demand declined 27.8%.
Gross profit increased 568.4% Y/Y to $50.4 million. The gross margin of 53.2% expanded by 3,450 basis points from Q2 FY20 and 910 basis points from Q2 FY19.
The company held $51.1 million in cash and equivalents as of July 31, 2021.
Adjusted EBITDA for the quarter was $12.5 million against $(9.04) million last year.
Adjusted EPS of $0.43 beat the analyst estimate of $(0.20).
Outlook: Build-A-Bear sees FY21 sales of $375 million - $385 million (prior over $338.5 million) versus the analyst estimate of $347.57 million.
The company has raised its EBITDA outlook to $45 million - $50 million (prior $28 million - $32 million).
Price Action: BBW shares are trading higher by 8.55% at $18.29 on the last check Thursday.

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