Yahoo Finance

• Revenue: Increased 3.6% to $496.4 million for fiscal 2024.

• Pretax Income: Grew 5.1% to $67.1 million.

• Adjusted EPS: Increased 10.2% to $3.77 for the year.

• Gross Margin: Improved to 56.6% in Q4, a 20 basis point increase.

• SG&A Expenses: $57.8 million or 38.4% of total revenues in Q4, an 80-basis-point improvement.

• Cash and Cash Equivalents: $27.8 million at year-end, a decrease of $16.6 million from the previous year.

• Store Traffic: Increased 3% in Q4, outperforming the national average.

• New Store Locations: Added 24 net new locations in 2024, with plans for at least 50 new net locations in 2025.

• Share Repurchases: Repurchased 1 million shares, over 6% of outstanding shares.

• Dividend Increase: Quarterly dividend increased by 10% to $0.22 per share.

• Warning! GuruFocus has detected 7 Warning Signs with PRVFF.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Build-A-Bear Workshop Inc (NYSE:BBW) reported record results for the fourth consecutive year, with revenues increasing by 3.6% to over $496 million and pretax income growing by 5.1% to over $67 million.

• The company successfully expanded its global retail footprint, adding over 100 new locations in the past two years, with a focus on partner-operated and franchise models.

• Build-A-Bear's digital transformation initiatives, including improved omnichannel capabilities and same-day delivery partnerships, have enhanced customer experience and driven sales growth.

• The introduction of new product lines, such as the Mini Beans collection, has been well-received, selling over 1.25 million units and contributing to increased conversion rates and transaction values.

• The company returned $42 million in capital to shareholders through dividends and share repurchases, reflecting strong cash flow and financial health.

Negative Points

• Tariff concerns pose a potential risk to pretax income growth, with expected negative impacts of up to $10 million in expenses for the year.

• E-commerce demand showed signs of slowing, with a decline in year-over-year performance, indicating room for improvement in the digital sales channel.

• The company faces inflationary pressures, including rising medical costs and minimum wage increases, which could impact profitability.

• Despite strong store traffic, there was a slight softness in conversion rates, suggesting potential challenges in converting foot traffic into sales.

• The geopolitical and economic environment, particularly related to tariffs, remains uncertain and could affect future financial performance.