2025 may be a transformative year for the retail industry. Following a period of growing consumer confidence and increased discretionary spending amid lower inflation post-COVID, retailers have an opportunity to build loyalty among existing customers and expand their bases at the same time.
In 3Q24, BBW generated $119 million in revenues, growing 10.19% y/y and 6.25% q/q. Operating margins and net margins improved to 10.92% and 8.40% from 9.26% and 7.41%. Although the poor consumer outlook will weigh on BBW, investors should not be overly worried. After all, BBW has managed to post impressive results consistently, demonstrating its resilience. Looking ahead, investors should expect continued revenue expansion as BBW continues to accelerate its asset-light shift and pull other levers to tap into other consumers (e.g., new types of products).
Build-A-Bear's Q3 results showed incredible revenue momentum in brick-and-mortar and in wholesale shipments, and highlighted the company's rapid partner-operated expansion with 17 new store openings. The updated FY2024 outlook suggests disappointing Q4 growth, reflecting weaker ecommerce demand and slower wholesale shipments. BBW stock doesn't have much asymmetric upside left in my base DCF model scenario.
Build-A-Bear Workshop, Inc. (NYSE:BBW ) Q3 2024 Earnings Conference Call December 5, 2024 9:00 AM ET Company Participants Gary Schnierow - Investor Relations Sharon Price John - Chief Executive Officer Voin Todorovic - Chief Financial Officer Conference Call Participants Eric Beder - Small Cap Consumer Research Greg Gibas - Northland Securities Keegan Cox - D.A. Davidson Steve Silver - Argus Research Operator Greetings, and welcome to Build-A-Bear Workshop Third Quarter 2024 Earnings Conference Call.
Shares of toy company Build-A-Bear Workshop (BBW 17.95%) jumped out to all-time highs on Thursday after it reported financial results for the third quarter of 2024. As of noon ET, Build-A-Bear stock was up an impressive 18%, and it has now nearly doubled in value year to date.
Build-A-Bear (BBW) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.53 per share a year ago.
Build-A-Bear Workshop has seen a 3500% increase since April 2020, evolving into a growth story underpinned by a unique retail approach. The company's success is driven by exceptional customer experiences, brand partnerships, and a flexible store formats. The financial turnaround includes 44% revenue growth from 2019-2023, increased e-commerce sales, and a leaner, more profitable business model.
The company brought in experienced leadership to move the business into new record territory.
Build-A-Bear (BBW) made it through our "Recent Price Strength" screen and could be a great choice for investors looking to make a profit from stocks that are currently on the move.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Build-A-Bear Workshop has strong financials and a debt-free balance sheet, giving it the makings to become a great long-term dividend stock. The company recently started paying a respectable dividend with a forward yield of 2.24%. BBW is aggressively expanding internationally, with plans to open 50 new locations this fiscal year, enhancing its growth potential and market presence.
Build-A-Bear (BBW) made it through our "Recent Price Strength" screen and could be a great choice for investors looking to make a profit from stocks that are currently on the move.