Build-A-Bear Workshop Reports 11% Revenue Growth in Q3 Fiscal 2024

Build-A-Bear Workshop, Inc. reported a notable increase in financial performance for the third quarter of fiscal 2024, with total revenues reaching $119.4 million, up 11% from $107.6 million in the same period last year. The company's net retail sales rose by 9.1% to $109.5 million, driven primarily by growth in existing stores. Additionally, commercial revenue surged by 43% to $8.6 million, attributed to increased sales from wholesale customers and the opening of 38 third-party retail stores since the previous year. The net income for the quarter was $9.9 million, compared to $7.6 million in the prior year, resulting in a basic earnings per share of $0.74, up from $0.53.

In terms of operational metrics, Build-A-Bear's total assets increased to $285.9 million as of November 2, 2024, compared to $250.5 million a year earlier. The company also reported a 10% increase in inventory levels, totaling $70.8 million, as it prepared for potential cost uncertainties. The number of corporately-managed stores rose to 362, with a net addition of 40 locations during the first three quarters of the fiscal year. The company continues to expand its footprint in non-traditional retail locations, including tourist destinations, which now account for over a third of its total stores.

Strategically, Build-A-Bear has focused on enhancing its digital transformation and expanding its omnichannel capabilities. The company has introduced new marketing initiatives and loyalty programs, such as the "Count Your Candles" offer, and has launched its first animated theatrical film, "Glisten and the Merry Mission." In September 2024, Build-A-Bear appointed a Chief Revenue Officer to align its operational structure with its digital strategy, reflecting its commitment to growth in e-commerce and digital engagement.

Looking ahead, Build-A-Bear anticipates continued revenue growth driven by its strategic priorities, including the expansion of its unique retail experience locations and further investment in digital initiatives. The company expects to open at least 65 new locations in fiscal 2024, while also maintaining a focus on returning capital to shareholders through dividends and share repurchases. The Board of Directors has declared a quarterly cash dividend of $0.20 per share, set to be paid on January 9, 2025, to stockholders of record as of November 27, 2024. Despite facing challenges such as inflation and rising operational costs, Build-A-Bear remains optimistic about its growth trajectory and market position.