Stockmarket

Build-A-Bear Shares Surge After Record Earnings, Revenue



© Reuters.

By Sam Boughedda

Investing.com — Build-A-Bear Workshop Inc (NYSE:) shares have soared 30% Wednesday after the company reported record earnings and revenue, beating analyst expectations.

Build-A-Bear announced earnings per share of 36 cents on revenue of $95.14 million. Analysts polled by Investing.com anticipated a per-share loss of 17 cents on revenue of $85.56 million. Revenue rose 27.4% compared to 2020.

The company’s shares hit $23.24 on Wednesday, its highest level since 2015.

The company told investors there will be a special cash dividend of $1.25 per share, while it also authorized a share repurchase program of up to $25 million effective through November 30, 2023.

Sharon Price John, Build-A-Bear Workshop president and CEO, said the records were down to the successful execution of their strategy along with the company’s ability to adapt to ongoing external volatility.

“We firmly believe our results reflect the progress we have made in our key initiatives allowing us to capitalize on increased demand with enhanced marketing programs and omnichannel capabilities while also having acknowledged the potential positive impact from pandemic related factors such as pent-up consumer activity and government stimulus,” Price John explained.

For fiscal 2021, the company expects total revenues to be in the range of $390 million to $400 million, representing an increase from its previous guidance of $375 million to $385 million. In addition, EBITDA for the period is forecasted to be $55 million to $60 million, another increase from previous forecasts of $45 to $50 million.

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