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Build-A-Bear Plunges Despite Q4 Topping Expectations

Published 10/03/2022, 16:58
Updated 10/03/2022, 16:58

By Sam Boughedda

Investing.com -- Investors have responded negatively to Build-A-Bear Workshop's (NYSE:BBW) fourth-quarter and full-year earnings report, with shares falling over 20%, despite earnings and revenue beating expectations.

The toy retailer announced earnings per share of $1.48 on revenue of $129.96 million. Analysts polled by Investing.com anticipated EPS of $0.64 on revenue of $111.93 million.

The company's consolidated e-commerce demand — orders generated online to be fulfilled from either the company's warehouse or stores — increased 3.5% compared to the fiscal 2020 fourth quarter representing a penetration of 20.7% of net retail sales. Additionally, e-commerce demand increased 114.7% compared to the fiscal 2019 fourth quarter.

“We are pleased to report outstanding results for fiscal 2021 including the company’s highest total revenues in more than a decade and record-breaking profitability," said Sharon Price John, Build-A-Bear Workshop's President and CEO.

Price John added that they "attribute the majority of our positive performance to the cumulative effect of the disciplined execution of a multi-year strategy to elevate and monetize our iconic brand even with external pressures that have reshaped consumer shopping habits."

The company noted that its positive momentum has continued into its fiscal 2022, but it will provide revenue and profit guidance at a future date "as it monitors the evolving external environment, assesses ongoing inflationary pressure and the potential impact of stimulus on consumer spending in the prior year."

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