what recession? The Build-A-Bear Workshop (BBW) keeps firing on all cylinders!

Amazing Quarterly Results from the Build-A-Bear Workshop

Chubby
Stocks surged 21% this morning after an overall terrible day. And this reaction was more than justified. In fact, as consumers continued to flock to the company’s stores and its e-commerce business also picked up growth after being hit by a sales disruption due to a planned website redesign in the third quarter, revenue for the period was It rose 11.7% year-over-year to $145.1 million, easily beating the consensus view of $137.5 million. Also, the positive impact of fixed occupancy costs from increased sales and reduced freight costs contributed significantly to his $4 million tax benefit in the fourth quarter of fiscal year 2021 (due to BBW’s full tax reversal). can nearly compensate for the negative effects of small fluctuations. North America valuation allowance of $7.8 million) and a charge of $5.7 million this year drove earnings down 6.1% from expectations to $1.39 per share, down 24.3% from what analysts had predicted. to $1.12.

Additionally, this positive momentum is likely to continue this year, with Roblox’s recently released digital game Build-A-Bear Tycoon likely to continue to drive interest in the brand (with 4 million engagements). And the company has many additional aces in the works, including a Build-A-Bear documentary with award-winning documentarian Taylor Morden launching this year and an animated film in development called Glisten and the Merry. Missions based on holiday plush star Glisten the snow deer scheduled for the 2023 holiday season — BBW will increase another 5-7% from last year’s record $467.9 million achieved in 2023 We believe we can increase our earnings. $491.3 million to $507 million means he’s comfortably above Street’s estimate of $485.6 million. And with freight costs expected to drop further, the company expects a further 10-15% increase in pre-tax profit. Also applying BBW’s projected tax rate of 25%, the midpoint of this outlook suggests earnings per share of about $3.54, about 10% higher than Street’s estimate of $3.21.

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But what really underscores how confident BBW is in its outlook for next year is the special dividend of $1.50 per share on April 6, 2023, all-record 6 April 2023. It is the fact that we announced at the same time that we will pay to the shareholders of March 23, 2023. This equates to him paying just over $22 million, but starting fiscal 2023 debt-free and with $42.2 million in cash, the guidance calls for him to produce nearly $50 million. Given that, the company has cash to spare. Additional free cash flow this year. If the company continues to meet these targets in line with my expectations, I believe the stock will continue to rise further in the years to come. Note that when this special dividend is paid, the stock will drop in value by the same $1.50, reflecting this value transfer.