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Build-A-Bear Workshop Reports Q1 Revenue Decline

Build-A-Bear Workshop, Inc. (NYSE: BBW) has reported its first-quarter fiscal 2024 results, highlighting a few key figures that indicate changes from the prior period.

First, the company's first-quarter revenues were $114.7 million, representing a decrease of 4.4% compared to the same period in the previous year. This decline was also reflected in the net retail sales, which were $107.9 million, down 3.8% from the prior year.

The company's pre-tax income for the first quarter of fiscal 2024 was reported at $15.0 million, marking a notable decrease of 22.3% from the previous year. The diluted earnings per share also experienced a decline, coming in at $0.82, down 16.3% from the prior period.

Another significant metric, the consolidated e-commerce demand, saw a decrease of 11.3% for online orders fulfilled from either the company’s warehouse or its stores.

Despite these declines, Build-A-Bear Workshop, Inc. reiterated its fiscal 2024 guidance with expectations for growth in total revenues and pre-tax income, as well as net new unit growth of at least 50 experience locations globally.

In terms of store activity, the company had a net new unit growth of six global experience locations, consisting of five partner-operated locations and three franchise locations, offset by the net closure of two corporately-managed locations, bringing the total global locations to 531.

The company also highlighted its return of capital to shareholders, stating that for the first quarter, it utilized $9.2 million in cash to repurchase 343,406 shares of its common stock and paid a $2.9 million quarterly cash dividend to shareholders.

Looking ahead, Build-A-Bear Workshop, Inc. reaffirmed its fiscal 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. Additionally, the company anticipates net new unit growth of at least 50 experience locations and capital expenditures in the range of $18 million to $20 million for fiscal 2024.

The company's financials also indicated a strong balance sheet, with cash and cash equivalents totaling $38.2 million at the end of the first quarter, an increase of 16.5% compared to the same period last year.

Following these announcements, the company's shares moved -12.7%, and are now trading at a price of $27.95. For more information, read the company's full 8-K submission here.

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