Build-A-Bear Workshop (BBW) Reports In-Line Q2 EPS; Comps Fell 8.6%

Build-A-Bear Workshop (NYSE: BBW) reported Q2 EPS of ($0.28), in-line with the analyst estimate of ($0.28). Revenue for the quarter came in at $75.1 million versus the consensus estimate of $79.09 million.

Consolidated comparable sales decrease as expected; the 8.6% decrease follows an 8.8% increase in the fiscal 2015 second quarter

Guidance:

For fiscal 2016, the Company has adjusted certain expectations in consideration of the recent unexpected 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;
• Consolidated comparable sales to increase in the low single-digit range;
• Pre-tax income to grow 10% to 20% compared to the prior year GAAP results, which reflects its current estimate of foreign exchange. Excluding the impact of foreign exchange, pre-tax income is expected to grow 15% to 25%;
• A tax rate of approximately 34%;
• Capital expenditures in the range of $25 million to $30 million and depreciation and amortization in the range of $17 million to $19 million; and
• To end the year with approximately 345 to 350 stores, 50 to 55 of which are expected to be in its new Discovery format.

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

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