Entering text into the input field will update the search result below

Build-A-Bear Workshop: A Sleeping E-Commerce Giant


  • As the world becomes vaccinated, we believe consumer spending will increase, especially in the form of gifts fueled by families being reunited.
  • E-commerce sales grew 167% in the third quarter and gross profit margins soared by over 700 basis points.
  • Management's focus on 3 core issues indicates their priorities are for the long term.
  • Looking for more investing ideas like this one? Get them exclusively at Best of the Uncovereds. Get started today »

Build-A-Bear Workshop, Inc. (NYSE:BBW) operates as a specialty retailer of plush animals and related products. The company operates through three segments: Direct-to-Consumer, International Franchising, and Commercial. Its merchandise comprises a range of styles of stuffed animals; clothing, shoes, and accessories for the stuffed animals; and other toy and novelty items. As of February 1, 2020, the firm operated 372 stores, including 316 stores in the United States and Canada, 56 stores in Europe and China, and 92 international franchises.

The company was founded in 1997 and is headquartered in St. Louis, Missouri. As the world becomes vaccinated and families are reunited, we believe consumer spending will increase, especially in the form of gifts. Therefore, we have a 12-month price target of $9.85 and believe BBW is an attractive investment because:

  • According to the U.S. Census Bureau, retail sales for the month of January increased 5.3% from December; furthermore, sales in the sporting goods, hobby, musical instrument, and book stores segment grew 8.0% sequentially. After declining every month in the fourth quarter, retail sales roared back with better than expected results. The combination of declining Covid cases, vaccine distribution picking up, and Washington’s second $900 billion stimulus package have led consumers to spend more.
  • In January, the Conference Board’s Consumer Confidence Index increased to 89.3 from 87.1 in December. Additionally, the Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, jumped from 87.0 in December to 92.5 in January. Historically, average consumer confidence is 96.95 (from February 1967 to January 2021).

Source: The Conference Board

  • BBW has over 9 million members in their Bonus Club and Opt-In e-mail database. Over 80% of mothers say BBW is a brand they can trust and over 80% of children say BBW is “fun to visit.”

Best of the Uncovereds offers new initiation reports on roughly two dozen companies per year, with a focus on under-followed small and mid caps with significant potential. We provide a quarterly earnings update reports on all companies covered, as well as flash reports on significant news announcements by companies. We go further for members, providing recorded interviews with management teams of covered companies when available and a monthly quantitative based "Market Indicators and Strategy Report."

This article was written by

Singular Research profile picture
Singular Research aims to be a trusted supplier of independent research on micro/small cap companies. We provide initiation reports and quarterly updates on roughly 40 uncovered companies. We cover growth and value style equity ideas leveraging the extensive experience and knowledge of our in house staff of over 6 CFA's. Award winning original research with a following of over 105 institutional clients with over $60 billion in assets under mgmt. Singular is closely associated with the existing author Cook Capital Management.

Analyst’s Disclosure: I am/we are long BBW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (10)

Net loss was $24.6 million, or ($1.65) per share, as compared to net income of $0.3 million, or $0.02 per diluted share in the 2019 fiscal year.
One thing that surprises me is that bbw doesn't have an app to build and order a bear from
I wonder, think about if BBW in the future became a shop where kids could come to not just purchase, but to build their own, first robotic animal. Their first life long buddy. Their first robot who talked to them, who grew up with them. Suddenly, I see a story, a long-term trend, something that captures the imagination, and, mot importantly, captures the Street's attention (possibly for years).

The best of fortune to us all
Any thoughts on BBW being acquired by a Walmart, Target etc..or even private equity??
@pjinvestmentco seeing as how Target has joined Forces with Apple / Ulta, I can see them doing something similar with BBW - I actually just started investing in this company at beginning of this year and it has been paying off nicely already, have been impressed
I believe BBW is worth north of $15 this year. The lines at BBW stores have had huge lines last 6 weeks. Lot of penned up demand. Families love taking the kids to BBW.
@pjinvestmentco are you sure the 'huge lines' have not been normal seasonal demand for Christmas and then Valentines day? Check their earnings from last year and you will see its seasonal. To think this stock is worth $15 is crazy. These guys have came in under EPS estimates 8 of the last 10 quarters. This current move is nothing more then people with a larger then normal bankroll pushing around a low dollar stock. When they lose interest in BBW, the price will go back to under $6 really fast.
@klhart89 haha, meme'rs must have lost interest in BBW, went from $8.50 to $7.75 (dropped 10% from high today) in 15mins.
@klhart89 I can name you 100's of biotechs, EV and others that have little to no revenues that have billions in market caps but BBW at $15 with a measly $200 million market cap with $35 million in cash zero debt and over 250 million in revenues is overvalued
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About BBW

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BBW

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.