Founded in 1997 and headquartered in St. Louis, Build-A-Bear Workshop (BBW) is the only global company that provides an interactive make-your-own stuffed animal entertainment experience.
The company IPO’d in 2004 and currently operates more than 400 stores worldwide, including company-owned stores in the US, Canada, the UK, Ireland and Denmark and franchisees operated 86 stores in 14 countries.
Disappointing Quarterly Results
The company reported very disappointing results for Q4. Adjusted net income was $5.0 million, or $0.31 per share, down from $10.6 million, or $0.64 per share, in the same quarter a year ago. Earnings significantly lagged the Zacks Consensus Estimate of $0.69 per share.
Consolidated comparable sales were down 8.3%.
“After reporting three consecutive years of comparable sales increases and improved profitability, these results are clearly disappointing. Through November, consolidated comparable sales were positive despite slightly negative traffic levels. However, similar to industry reported retail trends, our December traffic levels abruptly reversed, which adversely impacted both sales and profit for the quarter and the year,” 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 $0.48 per share and $0.52 per share respectively, down more than 60% from $1.07 and $1.28, before the results.
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.
Further, the industry is currently ranked 233 out of 265 Zacks industries (bottom 12%), suggesting potential underperformance in the short-to-medium term.
The stock is already down almost 40% this year.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Bear of the Day: Build-A-Bear Workshop (BBW)
Founded in 1997 and headquartered in St. Louis, Build-A-Bear Workshop (BBW) is the only global company that provides an interactive make-your-own stuffed animal entertainment experience.
The company IPO’d in 2004 and currently operates more than 400 stores worldwide, including company-owned stores in the US, Canada, the UK, Ireland and Denmark and franchisees operated 86 stores in 14 countries.
Disappointing Quarterly Results
The company reported very disappointing results for Q4. Adjusted net income was $5.0 million, or $0.31 per share, down from $10.6 million, or $0.64 per share, in the same quarter a year ago. Earnings significantly lagged the Zacks Consensus Estimate of $0.69 per share.
Consolidated comparable sales were down 8.3%.
“After reporting three consecutive years of comparable sales increases and improved profitability, these results are clearly disappointing. Through November, consolidated comparable sales were positive despite slightly negative traffic levels. However, similar to industry reported retail trends, our December traffic levels abruptly reversed, which adversely impacted both sales and profit for the quarter and the year,” 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 $0.48 per share and $0.52 per share respectively, down more than 60% from $1.07 and $1.28, before the results.
Build-A-Bear Workshop, Inc. Price and Consensus
Build-A-Bear Workshop, Inc. Price and Consensus | 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.
Further, the industry is currently ranked 233 out of 265 Zacks industries (bottom 12%), suggesting potential underperformance in the short-to-medium term.
The stock is already down almost 40% this year.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>