No Hugs For Build-A-Bear: Missed Q1 Earnings, Lower Sales Spark Premarket Plunge

Zinger Key Points
  • Build-A-Bear's Q1 FY24 results missed expectations with EPS of $0.82 vs. $1.03 and revenue of $114.7M vs. $120.6M, down 4.4% Y/Y.
  • The company reaffirmed FY24 revenue growth at low-to-mid-single-digit percentages, expecting net new unit growth of at least 50 locations.

Build-A-Bear Workshop, Inc. BBW shares are diving premarket after the company reported worse-than-expected first-quarter 2024 results.

Revenue totaled $114.7 million, marginally missing the analyst consensus of $120.6 million. Sales decreased 4.4% Y/Y. Consolidated e-commerce demand fell 11.3% Y/Y.

Quarterly commercial and international franchise revenues were a combined $6.9 million and declined 13.7% Y/Y.

EPS of $0.82 missed the Wall Street View of $1.03. 

The company added net new units across six global experience locations, comprised of five partner-operated locations and three franchise locations, and closed two corporately managed locations. 

As of quarter-end, Build-A-Bear had 531 global locations through a combination of its corporately managed, partner-operated, and international franchise models. 

Inventory at year-end was $64.0 million, reflecting a decline of $2.5 million, or 3.7%, compared to first quarter-end last year.

As of May 4, cash and cash equivalents totaled $38.2 million.

In the first quarter, the company repurchased shares worth $9.2 million and paid a $2.9 million quarterly cash dividend to shareholders.

Build-A-Bear Outlook

The St. Louis, Missouri-based company reaffirmed FY24 total revenue growth at a low-to-mid-single-digit percentage basis.

For FY24, the company continues to expect net new unit growth of at least 50 experience locations, through a combination of corporately-managed, partner-operated, and franchised business models.

Build-A-Bear reiterated outlook for pre-tax income growth at a mid-single-digit percentage basis in FY24.

Build-A-Bear recently launched a new brand campaign called “The Stuff You Love,” to commemorate more than a quarter-century of “creating and celebrating cherished memories worldwide,” CEO Sharon Price John said, citing a user-generated-content contest for consumers to share their own “special moments.”

Investors can gain exposure to stock via Barron’s 400 BFOR.

Price Action: BBW shares are down 17.19% to $26.50 premarket at the last check Thursday.

Now Read: Jim Cramer Doesn’t Care That Nelson Peltz Is Out Of Disney

Image: Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceDividendsBuybacksSmall CapMoversBriefsretailStories That MatterToyswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!