Build-A-Bear Workshop Pops On Q3 Revenue Beat, Raised Annual Guidance

Build-A-Bear Workshop Pops On Q3 Revenue Beat, Raised Annual Guidance
  • Build-A-Bear Workshop BBW reported third-quarter FY22 sales growth of 9.9% year-on-year to $104.48 million, beating the consensus of $102.62 million.
  • Net retail sales rose 8.3% Y/Y, and e-commerce demand declined 29.4%.
  • Gross profit increased 9.5% Y/Y to $54.3 million. The gross margin of 52% contracted by 10 basis points Y/Y.
  • The company held $12 million in cash and equivalents as of October 29, 2022.
  • Inventories at the end of Q3 were $88.3 million, an increase of $26.4 million from the end of 3Q21.
  • EPS for the quarter was $0.51 versus $0.36 last year.
  • Outlook: Build-A-Bear sees FY22 sales of $455 million - $465 million (prior view $440 million - $460 million) versus the consensus of $458.51 million.
  • The company expects FY22 EBITDA of $69 million - $76 million (prior view $65 million - $75 million).
  • Price Action: BBW shares are trading higher by 12.02% at $21.71 in premarket on the last check Wednesday.
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