BBW - Why Build-A-Bear Workshop's Stock Is Fluffing Up Today
Build-A-Bear Workshop (NYSE: BBW) reported some downright lovable third-quarter results on Wednesday morning. Investors embraced the plush toy retailer's robust revenue trend and drove Build-A-Bear's share price to fresh multiyear highs. The stock had gained 18.6% as of 2:10 p.m. ET.
Third-quarter sales rose 9.8% year over year to $104.5 million. According to generally accepted accounting principles ( GAAP ) jumped 42% higher, landing at $0.51 per diluted share. Your average Wall Street analyst had expected earnings of roughly $0.38 per share on revenue near $102.6 million. Build-A-Bear's management also raised its full-year guidance targets. The midpoint of the revenue projection increased from $450 million to $460 million. Various types of profit guidance saw guidance boosts of roughly 4%.
The retailer saw increased foot traffic to its stores during the third quarter. Build-A-Bear's online shopping portal was relaunched in this reporting period, with data-driven refinements based on lots of A/B testing on everything from the landing page to the checkout experience. The robust results and bullish guidance are even more impressive when you consider the prevailing currency exchange and shipping-cost headwinds, which added $2 million to the company's expenses while reducing top-line sales by $400,000.
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Why Build-A-Bear Workshop's Stock Is Fluffing Up Today