What were the key takeaways from Build-A-Bear’s earnings call?

What is Build-A-Bear's gross profit margin?

What does Build-A-Bear do and what are its main business segments?

What is the revenue and EPS growth rate for Build-A-Bear year over year?

What is the market's earnings forecast for Build-A-Bear next quarter?

Did Build-A-Bear beat or miss consensus estimates last quarter?

What guidance did Build-A-Bear's management provide for the next earnings period?

What factors drove the changes in Build-A-Bear's revenue and profit?

- **Record Q3 Growth**: $122.7M revenue (+2.7% YoY) despite $4M tariff impact, with Mini Beans sales up 60% Q3.
- **Global Expansion**: 24 new stores (70% international), re-entering Germany, and 2026 co-branded Hello Kitty locations.
- **Black Friday Success**: Best in company history, driven by holiday merchandising and 3M+ Mini Beans sold.
- **Tariff Mitigation**: 2026 Chinese tariffs to drop to 20%, plus cost control and price adjustments to offset headwinds.
- **Digital Strategy**: E-commerce YTD down <1%, focusing on omnichannel engagement and AI-driven personalization.

**【CEO Opening Remarks】**
- Q3 2025 revenue reached $122.7 million, up 2.7% YoY, with pretax income of $10.7 million despite $4 million tariff impact.
- Full year guidance reaffirmed for >$500 million revenue, driven by 60+ new store openings and 20%+ growth in commercial segment.
- Mini Beans sales approached 3 million units, with 60% Q3 growth, expanding into independent retailers.
- Black Friday 2025 was the company's best ever, with strong holiday merchandising and marketing efforts.

**【COO Retail Expansion Update】
- 24 net new stores opened in Q3, 70% outside the U.S., bringing total to 651 locations across 33 countries.
- 375 corporately managed stores, 108 franchises, and 168 partner-operated locations, with partner-operated now 25% of total.
- Reentered Germany with 3 stores, and launched co-branded Hello Kitty & Friends workshops in Los Angeles, expanding to American Dream and Mall of America in 2026.

**【CEO Digital & Brand Initiatives】
- Appointed Senior VP of E-commerce to balance e-commerce and in-store experiences, leveraging AI for personalized interactions.
- Mini Beans expanded into thousands of new retail points, with 60% Q3 growth and 2025 sales exceeding 3 million units.
- Halloween collection saw double-digit growth, driven by exclusive Hello Kitty co-branded characters and the new Posable Bat.

**【CFO Financial Review】
- Q3 GAAP net income $10.7 million, down 18% YoY due to tariffs and higher SG&A expenses (45.1% of revenue vs. 43.3% last year).
- Commercial revenue up 15.3% YoY, with Q4 expected to grow >30% to meet >20% full year target.
- Returned $26.1 million to shareholders YTD through dividends and buybacks, with $70 million remaining under repurchase authorization.
- Inventory increased 17% to $83.3 million to mitigate tariff risks and support commercial growth.

**【Q&A Highlights】
- Tariff mitigation: 2026 tariffs on Chinese imports to drop from 30% to 20%, plus cost control and price adjustments.
- Mini Beans success: $10 collectibles driving repeat purchases, with 60% Q3 growth and expansion into independent retailers.
- Promotional strategy: Tight discount management maintained 53.7% gross margin despite tariffs, with focus on high-margin experiences.
- Digital transformation: E-commerce down 10.8% Q/Q due to licensing shifts, but YTD down <1% with focus on omnichannel engagement.
- Global expansion: 30%+ growth in international stores, with Germany re-entry and co-branded locations driving brand awareness.

Build-A-Bear Workshop, Inc. (BBW) Q3 2026 Earnings Call Transcript

- **Record Q2 Results**: $124.2M revenue (+11.1%), $0.94 EPS (+47%), and 14 new stores opened globally.
- **Strategic Growth Drivers**: Mini Beans collection up 80% YoY, partner-operated stores now 25% of total locations.
- **Financial Resilience**: 340bps gross margin expansion despite $11M tariff headwind, $39.1M cash on hand.
- **Halloween Momentum**: Early sellouts for new Posable Bat and Mini Beans, setting up for strong holiday season.
- **Guidance Update**: FY2025 revenue growth mid-single to high single digits, pretax income $62-70M.

**【CEO Summary Section】**
- Q2 2025 revenue reached $124.2 million, up 11.1% YoY, with record pretax income of $15.3 million and EPS of $0.94.
- Strategic pillars driving growth: global retail expansion (14 net new stores, 86% international), digital transformation (social media campaigns, Mini Beans collection), and brand leverage (wholesale partnerships, licensed products).
- Mini Beans collection saw 80% YoY revenue growth, with successful launches like Kiwi Koala and Halloween-themed Mini Beans.
- Updated FY2025 guidance: revenue growth mid-single to high single digits, pretax income $62-70 million, net new units ≥60 locations.

**【CFO Financial Commentary】**
- First half 2025: $252 million revenue (+11.3%), pretax income $35 million (+31%), EPS $2.11 (+44.5%).
- Retail gross margin improved 340bps to 57.6%, driven by reduced promotions and selective price increases.
- SG&A expenses rose 140bps to 45.4% of revenue due to store-level compensation and inflation.
- Tariffs expected to impact FY2025 by ~$11 million, partially mitigated by dual-sourcing from China and Vietnam.
- Strong cash flow: $39.1 million cash, $13.1 million returned to shareholders via dividends and buybacks.

**【Q&A Highlights】**
- **Tariff Mitigation**: Price increases selective and strategic, with no negative consumer impact seen in traffic (+3% vs. -3% national benchmark).
- **Mini Beans Expansion**: Wholesale sales growing internationally, with placements in Hudson, Applegreen, and partner toy stores.
- **Global Store Strategy**: Partner-operated model (25% of locations) driving international growth, with Germany re-entry and 32-country presence.
- **Halloween Performance**: Strong early sales for 2025 collection, including new Posable Bat and Mini Beans candy corn Longhorn.
- **Capital Allocation**: Maintaining dividend policy and buyback flexibility ($80 million remaining under authorization).

Build-A-Bear Workshop, Inc. (BBW) Q2 2025 Earnings Conference Call Transcript

- **Record Q1 Performance**: $128.4M revenue (+11.9%), $19.6M pre-tax profit (+30.6%), $1.17 EPS (+42.7%).
- **Global Expansion Acceleration**: 15 new stores opened, 30+ countries reached, 600+ global locations.
- **Profitability Boost**: 260bps gross margin expansion to 56.8%, $7.1M shareholder returns.
- **Tariff Mitigation**: < $10M FY25 impact, $5M medical/labor costs, 20%+ commercial growth forecast.
- **Mini Beans Success**: 30% YoY growth, 2M+ units sold, expanding into airports and international markets.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $128.4M, up 11.9% YoY, driven by double-digit growth across all segments.
- Pre-tax income surged 30.6% to $19.6M, with EPS rising 42.7% to $1.17, marking the best first quarter in company history.
- Strategic initiatives include expanding into 30+ international markets, launching Mini Beans plush line (30% YoY growth), and digital transformation.

**【COO Global Expansion Update】**
- Opened 15 net new stores in Q1, including flagship locations in Ireland, Finland, and UAE.
- International expansion now spans 30+ countries, with 600+ global locations (30% outside the U.S.).
- Notable openings include a 1,500 sq.ft. store in ICON Park, Orlando, set to launch in Q3 2026.

**【CFO Financial Highlights】**
- Gross margin improved 260bps to 56.8%, benefiting from lower discounts and cost leverage.
- SG&A expenses rose 20bps to 41.7% of revenue, driven by wage and healthcare costs.
- Tariffs expected to impact FY25 P&L by <$10M net of mitigation, with $5M in additional medical/labor costs.
- FY25 guidance: $61-67M pre-tax income, 20%+ growth in commercial segment.

**【Q&A Key Takeaways】**
- Mini Beans expansion into 28+ U.S. airports and international markets, with 2M+ units sold.
- Build-A-Bear's destination model drives 60-80% planned visits, outperforming U.S. retail traffic (-3% vs +3%).
- Tariff mitigation strategies include dual-sourcing from Vietnam and redirecting China-sourced goods to international stores.
- Q2 momentum continues with strong Easter sales and new product launches (e.g., Pokémon plush).

Build-A-Bear Workshop, Inc. (BBW) Q1 2025 Earnings Call Transcript

- **Record Fiscal 2024 Results**: $496.4M revenue (+3.6%), $67.1M pretax income (+5.1%), with $42M returned to shareholders.
- **Global Expansion Acceleration**: 64 new locations in 2024, targeting 50+ in 2025, including flagship Orlando store.
- **Strong Financial Performance**: Q4 adj. EPS $1.59 (+18.7%), FY24 adj. EPS $3.77 (+10.2%).
- **Tariff Mitigation Progress**: China sourcing down to <50%, $10M+ potential tariff impact in 2025.
- **Consumer Resilience**: Traffic +3% vs. national decline, MiniBeans 1.25M units sold, digital voice sales +double digits.


**【CEO Summary Section】**
- Fiscal 2024 revenue reached $496.4 million, up 3.6% YoY, with pretax income of $67.1 million (+5.1%).
- Expanded global footprint with 64 new locations (24 in Q4), including 13 in Italy and 4 each in Mexico, Norway, and Colombia.
- Returned $42 million to shareholders via dividends and buybacks, with a 10% dividend increase to $0.22/share.
- FY25 guidance: Mid-single-digit revenue growth, 20%+ commercial segment growth, and $10 million+ tariff-related expenses.

**【COO Global Expansion】**
- Added 24 Q4 locations, including high-traffic tourist spots like London's Oxford Street and Chicago's Michigan Avenue.
- Partner-operated/franchise expansion: 30 new units in 10 countries, with 50+ net new locations expected in FY25.
- ICON Park Orlando flagship set to open H1 2026, leveraging proximity to Disney, Universal, and Epic Universe.

**【CFO Financial Highlights】**
- Q4 GAAP net income: $27.5 million (+15.8% YoY), adj. EPS $1.59 (+18.7%).
- FY24 cash return: $42M (6%+ share repurchases), with $85M remaining under buyback program.
- Inventory up 10% YoY due to tariff mitigation; China sourcing reduced to <50% of North America shipments.
- FY25 pretax income: Low-single-digit range, driven by inflation (tariffs, wages, medical costs).

**【Q&A Key Takeaways】**
- Consumer trends: Traffic +3% vs. -1% national, outperforming on birthdays, gifting, and collectibles (40% sales).
- E-commerce: Omnichannel integration (Uber same-day delivery, digital voice recording) driving double-digit Record Your Voice sales.
- Tariff risk: $10M+ potential impact, partially offset by diversified supply chain (China down from 100% to <50%).
- MiniBeans success: 1.25M units sold, planned wholesale expansion in 2025.


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