Build-A-Bear Workshop, Inc. (NYSE: BBW) has reported its second-quarter and first-half fiscal 2024 results, reaffirming its annual guidance. The company's second-quarter revenues were $111.8 million, marking a 2.4% increase from the same period in the prior year. Pre-tax income for the quarter was $11.5 million, representing a 10.2% increase, and diluted earnings per share stood at $0.64, reflecting a 12.3% increase.
In the first half of fiscal 2024, total revenues were $226.5 million, a decrease of 1.2% from the first half of fiscal 2023. Net retail sales for the same period were $211.3 million, reflecting a 2.0% decrease.
The company repurchased 341,621 shares of its common stock and paid a $2.7 million quarterly cash dividend to shareholders in the second quarter. In the first half of fiscal 2024, Build-A-Bear repurchased 685,027 shares of its common stock and paid $5.6 million in quarterly cash dividends to shareholders.
The company's outlook for fiscal 2024 includes expectations of 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 expects net new unit growth of at least 50 experience locations and anticipates capital expenditures in the range of $18 million to $20 million.
At the end of the second quarter, Build-A-Bear had 548 global locations, comprising 361 corporately-managed stores, 107 partner-operated stores, and 80 franchise stores. The company's cash and cash equivalents totaled $25.2 million, representing a decrease of $7.4 million compared to the same period in the prior year.
The company's CEO, Sharon Price John, expressed confidence in their annual guidance, citing increasing momentum for their experience locations and strong improvement in web demand. Voin Todorovic, the company's CFO, highlighted the most profitable second quarter in their history and the sustainability of their transformed business model.
The company's guidance takes into account ongoing inflationary pressures and increased freight costs, assuming no further material changes in the macroeconomic or geopolitical environment, or relevant foreign currency exchange rates.
Build-A-Bear Workshop, Inc. has reported these results with a focus on key metrics and financial indicators, demonstrating both growth and challenges in the retail and e-commerce sectors. Today the company's shares have moved 16.6% to a price of $32.51. Check out the company's full 8-K submission here.
