Build-A-Bear Workshop (BBW) Reports In-Line Q3 EPS

October 27, 2016 6:49 AM EDT
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Build-A-Bear Workshop (NYSE: BBW) reported Q3 EPS of $0.11, in-line with the analyst estimate of $0.11. Revenue for the quarter came in at $83.7 million versus the consensus estimate of $86.52 million.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer, commented, “In the quarter, we delivered a significant increase in pre-tax income landing within our guidance as we continued to move our key strategies forward, including the repositioning and diversification of our real estate portfolio. While sales were soft early in the quarter when we anniversaried a key movie product launch, we finished with positive momentum that has carried into the start of our fourth quarter, which is typically our largest and most profitable of the year.

“We believe we are well-positioned for the quarter as our product assortment is balanced across licensed and proprietary products that target each of our key consumer segments while our Discovery format stores continue to deliver positive results compared to our heritage stores. Given that, we expect to deliver pre-tax income expansion of 15% to 25% in fiscal 2016, which excludes the impact of foreign exchange for the year given that we are unable to predict future fluctuations,” concluded Ms. John.

Fiscal 2016 Outlook

For fiscal 2016, the Company has adjusted certain expectations in consideration of the continuing fluctuations of foreign exchange. The Company’s current expectations are as follows:

  • Total revenue to increase in the low single-digit range compared to the prior year;
  • Fourth quarter consolidated comparable sales to increase in the low- to mid-single digit range resulting in consolidated comparable sales in the range of negative low-single-digit to positive low-single-digit for the 2016 fiscal year;
  • Pre-tax income to grow 5% to 15% compared to the prior year GAAP results, which reflects current foreign exchange rates. Excluding the impact of foreign exchange, pre-tax income is expected to grow 15% to 25%;
  • A tax rate of approximately 35%;
  • Capital expenditures of approximately $30 million and depreciation and amortization of approximately $16 million; and
  • To end the year with an estimated 345 stores, including approximately 55 in a Discovery format.

For earnings history and earnings-related data on Build-A-Bear Workshop (BBW) click here.

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