Back to top

Image: Bigstock

Bear of the Day: Build-A-Bear Workshop (BBW)

Read MoreHide Full Article

Founded in 1997 and headquartered in St. Louis, MO, Build-A-Bear Workshop (BBW - Free Report) is a retailer of plush animals that provides an interactive make-your-own stuffed animal entertainment experience.

The company was founded in 1997 and currently operates more than 400 stores worldwide, including company-owned stores in the US, Canada, China the UK, Ireland and Denmark and franchisees operated stores worldwide.

Disappointing Quarterly Results

The company reported results for its fiscal first quarter ended May 5 on May 31. Total revenues were $83.2 million, down from $91.2 million in the same quarter a year ago.

Net income was $0.4 million, or $0.02 per share, down from $2.6 million, or $0.16 per share, and significantly short of the Zacks Consensus Estimate of $0.25.

The company said they had expected to see a sales and profit decline due to adoption of the new revenue recognition standard and the recent closure of their largest store.

“Separately, with a less robust movie lineup for the year, we anticipated softness in licensed product performance. And, while we expected continued traffic declines, this headwind was further exacerbated by the unexpected Toys“R”Us liquidation, which according to our analysis eroded sales in nearby locations,” said the CEO.

Estimates Slashed

Analysts have slashed their estimates significantly after poor results. Zacks Consensus Estimates for the current and next year are down to $0.50 per share and $0.56 per share respectively, down from $0.55 and $0.79, before the results.

The stock plunged after the earnings report and is now down more than 15% this year.

Build-A-Bear Workshop, Inc. Price, Consensus and EPS Surprise

Build-A-Bear Workshop, Inc. Price, Consensus and EPS Surprise | Build-A-Bear Workshop, Inc. Quote

The Bottom Line

In addition to disappointing consumer spending and mall traffic, the retail space is witnessing a shift toward online shopping. This trend definitely hurts this toy maker, which focuses on building toys in store.

Today's Stocks from Zacks' Hottest Strategies

 

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

 

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

 

See Them Free>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Build-A-Bear Workshop, Inc. (BBW) - free report >>