Record Revenue and Earnings Growth
Build-A-Bear reported the best second quarter and first half results in its history, with Q2 revenues growing 11% to over $124 million, pretax income increasing by 33% to over $15 million, and EPS rising by 47% to 94¢. For the first half, revenues grew more than 11% to over $252 million, pretax income increased over 31%, and EPS rose approximately 45%.
Successful Global Expansion
Build-A-Bear opened 14 net new experience locations in Q2, with 86% of them being international, expanding the brand to 32 countries. The company increased its net new unit growth guidance for the year to at least 60 locations from the previous 50.
Strong E-commerce and Digital Transformation
E-commerce demand increased 15.1% due to strong consumer response to key product launches, and digital transformation efforts include social media initiatives that drove omnichannel sales and broadened the consumer base.
Innovative Product Launches
The launch of the mini beans collection contributed to an 80% year-on-year revenue increase for the category, with the successful introduction of new product types and marketing campaigns, such as the fruit stand assortment.
Increased Shareholder Returns
Build-A-Bear returned more than $13 million in capital to shareholders during the first half of the fiscal year through dividends and share repurchases.