Build-A-Bear Workshop Shares Slide Post Q4 Results

  • Build-A-Bear Workshop Inc BBW reported fourth-quarter FY21 sales growth of 38.8% year-on-year, to $129.96 million, marginally ahead of the consensus of $129.87 million.
  • Net retail sales increased 36.8% Y/Y, and the e-Commerce demand rose 3.5%.
  • The company noted that the surge in COVID cases in the latter half of January 2022 led to constrained store labor and resulted in temporary store closures in 67 of its locations.
  • The gross profit margin expanded 330 basis points to 53.5%.
  • Selling, general and administrative expenses increased to $49.4 million and constituted 38% of total revenues, versus 38.7% last year.
  • Adjusted EBITDA of $22.7 million increased 80% Y/Y.
  • Adjusted EPS of $0.97 beat the analyst consensus of $0.92.
  • The company held $32.8 million in cash and equivalents as of January 29, 2022.
  • Outlook: Build-A-Bear sees Q1 FY22 revenue to exceed Q1 FY21. It sees pretax income and EBITDA to exceed last year.
  • Price Action: BBW shares are trading lower by 18.5% at $16.00 in premarket on the last check Thursday.

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