Build-A-Bear Workshop +9% after digital sales jump to almost double, guidance raise

May 26, 2021 10:48 AM ETBuild-A-Bear Workshop, Inc. (BBW)BBWBy: Shweta Agarwal, SA News Editor2 Comments
  • Build-A-Bear Workshop (BBW +9.1%) rallies after reporting solid revenue growth and beating estimates in its first-quarter earnings result.
  • Revenue of $91.69M (+96.7% Y/Y) beats consensus by $48.74M.
  • E-commerce demand rose 87% Y/Y; Commercial and international franchise revenues were $2.5M, compared to $1M in 1Q20.
  • "We delivered one of the strongest first quarters in our Company’s nearly 25-year history including a 96.7% increase in total revenues.....We saw sales growth in both our brick-and-mortar stores and digital channels even with our locations in Europe temporarily closed for the majority of the period due to local COVID restrictions," says President and CEO Sharon Price John.
  • Gross profit margin increased to 52.8%, compared to 17.3% a year ago.
  • GAAP pre-tax income grew to $13.2M, an improvement of $31.9M compared to the loss in the prior year’s quarter
  • Non-GAAP EPS of $0.60 beats by $1.13; GAAP EPS of $0.66.
  • The company ended the quarter with $45.9M in cash and cash equivalents.
  • As of May 1, 2021, Build-A-Bear Workshop had 355 corporately-managed stores. The company notes that majority of its locations in the United Kingdom and Ireland have reopened in mid-April.
  • FY 21 Outlook:
  • FY21 revenue is expected to exceed FY19 total revenues of $338.5M.
  • The company expects to see its 2Q21 e-commerce demand to be essentially flat compared to the prior year’s period while still representing a triple digit increase over 2019.
  • Raises guidance range for full-year EBITDA to $28 - $32M, representing an increase from its previous guidance to be higher than FY19 EBITDA of $15.3M.
  • Capex is expected to be in the range of $5 - $10M.
  • "Build-A-Bear is successfully achieving value through digital transformation efforts. The impending re-opening along with operational improvements should prove to be profitable for it," writes SimpliStk on Seeking Alpha.

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