What Recession? Build-A-Bear Workshop (BBW) Continues To Fire On All Cylinders!

Fantastic quarterly results released by Build-A-Bear Workshop

BBW
this morning had its shares surging 21% on what was a terrible day for equities overall. And this reaction was more than justified. Indeed, with consumers continuing to flock to the company’s stores in droves and its e-commerce business also returning to growth after suffering some sales disruption from the planned redesign of its website in Q3, revenues in the period climbed 11.7% from the prior year to $145.1 million and easily exceeded the $137.5 million consensus view. And with the positive leverage of fixed occupancy expense from the higher sales and lower freight costs also nearly making up for the negative impact of the substantial swing from a $4.0 million tax benefit in Q4 of fiscal 2021 (which resulted from the full reversal of BBW’s tax valuation allowance in North America of $7.8 million) to a $5.7 million expense this year, earnings fell by a less-than-anticipated 6.1% to $1.39 per share, which was much better than the 24.3% drop to $1.12 analysts had been predicting.