BBW - Build-A-Bear Workshop stock surges on earnings beat special dividend declaration

2023-03-09 07:08:16 ET

Build-A-Bear Workshop ( NYSE: BBW ) shares rose over 10% in premarket action after exceeding Q4 earnings expectations.

For the fourth quarter , a report of $1.30 in adjusted earnings per share came in $0.18 better than consensus expectations. Meanwhile, an 11.6% jump in revenue year over year to $145.1M was $7.56M.above estimates. Gross profit margin rose 150 basis points year over year to 55%.

“We are pleased to have delivered another strong quarterly performance with double-digit growth in total revenues contributing to an increase of over 30% in pre-tax profit versus the prior year’s fourth quarter,” CEO Sharon Price John commented. “With the positive momentum continuing into the first quarter of fiscal 2023, we look to our promising future with an even stronger brand, an elevated digital and organizational infrastructure, a proven multi-dimensional strategy and a motivated seasoned team committed to continue to drive shareholder value.”

For fiscal 2023, total revenues to increase in the range of 5% to 7% versus 2022, exceeding the consensus of 5.4%. Pre-tax income growth of 10% to 15% is anticipated for 2023 as well. The chain expects to open 20 to 30 new locations in 2023.

Shares of Build-A-Bear Workshop ( BBW ) popped 11.52% in premarket action on Thursday.

Read more on the special dividend declared on Thursday .

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