Overview

* Build-A-Bear fiscal Q2 revenue grows 11.1%, setting a Q2 record at $124.2 mln

* Diluted EPS for fiscal Q2 rises 46.9%, driven by higher pre-tax income

* Company raises 2025 revenue, pre-tax income, and net new unit guidance

Outlook

* Company increases 2025 revenue guidance to mid-to-high single-digit growth

* Build-A-Bear expects 2025 pre-tax income between $62 mln and $70 mln

* Company raises net new unit growth guidance to at least 60 locations

* Build-A-Bear maintains 2025 capital expenditures guidance at $20 mln to $25 mln

Result Drivers

* STORE PERFORMANCE - Strong store performance and contribution margins in Direct-to-Consumer segment drove record results, per CEO Sharon Price John

* COMMERCIAL GROWTH - Double-digit revenue growth in Commercial segment contributed to increased revenues

* GROSS MARGIN IMPROVEMENT - Gross margin improved due to reduced promotional activity, cost leverage, and selective price increases

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $114.64

Retail mln

Sales

Q2 EPS $0.94

Q2 Net $12.37

Income mln

Q2 Gross $71.51

Profit mln

Q2 $15.32

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

* Wall Street's median 12-month price target for Build-A-Bear Workshop Inc ( BBW ) is $64.00, about 8.5% above its August 27 closing price of $58.56

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)