Build-A-Bear Workshop, Inc. (NYSE: BBW) has reported record fourth quarter and full-year fiscal 2023 results, with both periods benefiting from an additional week of sales as compared to fiscal 2022. The company's fiscal year total revenues and pre-tax income increased by 3.9% and 7.1% respectively, with diluted earnings per share ("EPS") increasing by 15.9%. The company also initiated a new quarterly dividend of $0.20 per share.
For the fourth quarter of fiscal 2023, total revenues were $149.3 million, a 2.9% increase from the prior year, with net retail sales increasing by 1.5% and commercial and international franchise revenues combined increasing by 31.1%. Pre-tax income for the same period was $26.1 million, representing 17.5% of total revenues, and a decrease of 60 basis points. Diluted EPS for the quarter was $1.57, a 12.9% year-over-year increase, and earnings before interest, taxes, depreciation, and amortization ("EBITDA") grew 1.6% to $29.9 million.
For the full fiscal year 2023, total revenues were $486.1 million, a 3.9% increase, with net retail sales increasing by 2.2% and commercial and international franchise revenues combined increasing by 37.7%. Pre-tax income grew by 7.1% to $66.3 million, representing 13.6% of total revenues, and diluted EPS was $3.65, a 15.9% year-over-year increase. EBITDA for the full year grew by 6.2% to $79.1 million.
The company also provided its 2024 outlook, expecting total revenue growth on a low-to-mid-single-digit percentage basis and pre-tax income growth on a low-single-digit percentage basis. The outlook includes expectations for net new unit growth of at least 50 experience locations globally, capital expenditures in the range of $18 million to $20 million, depreciation and amortization in the range of $15 million to $16 million, and a tax rate of approximately 26%, excluding discrete items.
Build-A-Bear Workshop also returned $42.4 million to shareholders through a special dividend and share repurchases for fiscal 2023, and has initiated a new quarterly dividend of $0.20 per share. The company has repurchased 111,135 shares of its common stock since fiscal year-end, with $23.5 million remaining available under the board authorized $50.0 million stock repurchase program adopted on August 31, 2022.
As of February 3, 2024, the company's cash and cash equivalents totaled $44.3 million compared to $42.2 million as of January 28, 2023, with no borrowings under its revolving credit facility. The company's inventory at year-end was $63.5 million, reflecting a decline of $7.0 million, or 9.9% from January 28, 2023.
The company's guidance for fiscal 2024 considers a variety of factors, including anticipated ongoing inflationary pressures and increased freight costs, and assumes no further material changes in the macroeconomic or geopolitical environment or relevant foreign currency exchange rates.
Build-A-Bear Workshop, Inc. is a multi-generational global brand with more than 500 interactive brick-and-mortar experience locations and engaging e-commerce/digital purchasing experiences. The company also offers products at wholesale and in non-plush consumer categories via licensing agreements with leading manufacturers.
The market has reacted to today's announcements by moving the company's shares 15.6% to a price of $28.91. Check out the company's full 8-K submission here.
