Build-A-Bear Workshop (BBW) shares are experiencing a significant surge following the release of its record-breaking third-quarter financial results. The company reported an 11% increase in revenue year-over-year, reaching $119 million, which exceeded analyst expectations. This strong performance was driven by robust retail and franchise operations, as well as a 38.8% increase in commercial and international franchise revenues. The company's earnings per share (EPS) also beat estimates, coming in at $0.73 compared to the expected $0.65. Build-A-Bear's expansion into international markets and third-party retailers has been a key factor in its success, contributing to its best-ever third-quarter performance.
The company has also announced plans to open 65 new locations this year, up from the original plan of 50, further boosting investor confidence. Additionally, Build-A-Bear has authorized a $97 million stock buyback, which is significant given its market capitalization of $612.08 million. This move, along with a dividend yield exceeding 2%, underscores the company's commitment to increasing shareholder value. The financial health of Build-A-Bear is further highlighted by its strong Altman Z-score and Piotroski F-Score, indicating fiscal stability and a healthy financial situation.
Build-A-Bear Workshop (BBW) shares are up 18.20% to $44.82 as of 3:01 pm on Thursday, compared to its previous close of $37.92 and 11.85% higher than its opening price of $40.07.