Build-A-Bear Workshop, Inc. (NYSE: BBW) Q1 2025 Earnings Call | 5/29/2025
AI Summary
Build-A-Bear Workshop's Q1 2025 earnings call reported record-breaking results, with revenue up 11.9% to $128.4 million, pre-tax income rising 30.6% to $19.6 million, and EPS growing 42.7% to $1.17. The success was driven by strategic initiatives: expanding experiential retail, advancing digital transformation, and leveraging brand strength. Net retail sales increased 10.9% to $119.6 million, with domestic store traffic up 8% and e-commerce up 0.5%. Commercial revenue grew 25%, and gross margin expanded 260 basis points to 56.8% due to lower discounts and occupancy costs. SG&A rose to $53.7 million (41.7% of revenue) from higher wages and inflation. The company opened 15 net new locations, reaching over 600 globally across 30 countries, and plans for 50+ more in 2025. The Mini Beans collectible line grew 30% year-over-year, selling nearly 2 million units. A new inventory system is set to enhance real-time visibility and efficiency. Despite tariff costs of $2 million, Build-A-Bear mitigated impacts through diversified sourcing (mostly Vietnam) and expects a net tariff hit of under $10 million. Full-year revenue outlook is unchanged, but pre-tax income guidance was adjusted to $61–$67 million, reflecting tariffs and $7.1 million was returned to shareholders. The company remains confident in its strategy amid economic volatility, citing a strong balance sheet, flexible model, and resilient toy industry.
About this video
Build-A-Bear Workshop, Inc. (NYSE: BBW) delivered its best first-quarter results ever for Q1 2025, reporting record revenue of $128.4 million—an 11.9% increase year-over-year—and a 42.7% jump in earnings per share to $1.17, far surpassing analyst expectations. Pretax income climbed 30.6% to nearly $20 million, with gross margin expanding to 56.8%. The company ended the quarter with over 600 locations worldwide, including 15 new experience stores, and expanded into 30 countries. Net retail sales rose 10.9% to $119.6 million, and commercial revenue (including international franchise sales) surged 28.3%. The popular Mini Beans Collectibles Plush line grew 30% year-over-year, further boosting sales. Build-A-Bear maintained a strong balance sheet, with cash reserves of $44.3 million (up 16%) and returned over $7 million to shareholders. Despite higher SG&A expenses due to increased wages, healthcare, and inflation, the company continues to focus on cost management and strategic growth. Management noted potential headwinds from tariffs and rising costs, but remains confident in its brand strength, global strategy, and ability to navigate economic uncertainties. About Inside Ticker: For more expert analysis and real-time updates on Build-A-Bear Workshop, Inc. (NYSE: BBW) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #BuildABear #BBW #EarningsCall #Q12025 #RetailStocks #GlobalExpansion #PlushToys #StockMarket #Investing #InsideTicker
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