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.
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.
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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.
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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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