BBW - Build-A-Bear Workshop: Upside Still Exists But Beware Of Long-Term Revenue Declines
2024-04-02 08:49:34 ET
Summary
- Build-A-Bear's stock has surged due to increased demand after a long-term revenue slump, also raising margins from near breakeven into a very healthy level.
- The FY2024 outlook still expects good growth, suggesting that the healthier growth is here to stay.
- Build-A-Bear has attracted older generations, with 80% of customers being millennials or Gen X, indicating a wide age range for demand.
- The current valuation still has room for growth with a forward P/E of 8.3 and a DCF model pointing towards a good upside.
Build-A-Bear Workshop ( BBW ) sells plush animals in the United States, Canada, the United Kingdom, as well as internationally. The plush animal offering is unique as customers can customize the bought toy with clothing, shoes, and accessories among other add-ons to create a unique plush animal. The company licenses a wide range of brands such as Pokemon, Lord of the Rings, and several Disney brands in the offering....
Build-A-Bear Workshop: Upside Still Exists, But Beware Of Long-Term Revenue Declines