On August 29, 2024, Build-A-Bear Workshop Inc (BBW, Financial) released its 8-K filing for the second quarter of fiscal year 2024, ending August 3, 2024. The company reported robust financial results, surpassing analyst estimates for both earnings per share (EPS) and revenue.
Company Overview
Build-A-Bear Workshop Inc is a U.S.-based specialty retailer of customized stuffed animals and related products. The company operates through three segments: Direct-to-consumer, International franchising, and Commercial. The Direct-to-consumer segment, which includes e-commerce and temporary stores, is the primary revenue driver. The International franchising segment licenses the company's franchise agreements globally, while the Commercial segment handles intellectual property licensing and wholesale activities.
Q2 Fiscal 2024 Performance
Build-A-Bear Workshop Inc reported total revenues of $111.8 million for Q2 2024, exceeding the analyst estimate of $108.49 million. The company achieved a net income of $8.8 million, translating to an EPS of $0.64, which surpassed the estimated EPS of $0.57.
Financial Achievements
The company highlighted several key financial achievements:
- Record profitability for the second quarter, demonstrating the sustainability of its transformed business model.
- Strong cash flow generation, enabling the repurchase of over 5% of shares outstanding at the start of fiscal 2024.
- Net new unit growth of 17 global experience locations, bringing the total to 548 locations worldwide.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $111.8 million | $109.2 million |
| Net Income | $8.8 million | $8.3 million |
| EPS (Diluted) | $0.64 | $0.57 |
Balance Sheet and Cash Flow
As of the end of Q2 2024, Build-A-Bear Workshop Inc reported cash and cash equivalents of $25.2 million, a decrease from $32.6 million at the same time last year. The company had no borrowings under its revolving credit facility. Inventory levels were stable at $67.0 million, reflecting a slight increase from $66.3 million in the previous year.
Return of Capital to Shareholders
During the second quarter, the company utilized $9.1 million in cash to repurchase 341,621 shares of its common stock and paid a $2.7 million quarterly cash dividend to shareholders. For the first half of fiscal 2024, the company repurchased 685,027 shares and paid $5.6 million in dividends.
Outlook for Fiscal 2024
Build-A-Bear Workshop Inc reaffirmed its fiscal 2024 outlook, expecting growth in total revenues and pre-tax income compared to fiscal 2023. The company remains confident in its ability to leverage its brand and drive profitable growth through omni-channel integration and new global experience locations.
"The Company grew total revenues, even with what we believe to be transitory web demand challenges, resulting in the most profitable second quarter in our history," said Voin Todorovic, Chief Financial Officer of Build-A-Bear Workshop.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Build-A-Bear Workshop Inc for further details.
