NEW
YORK, April 17, 2023 /PRNewswire/ -- Argus
Research, an independent investment research firm, has launched
Equity Research Report coverage on BUILD-A-BEAR WORKSHOP, INC.
(NYSE: BBW).
Click Here to view full Argus Equity Research
Report.
COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus
Analyst Steve Silver) include:
BBW: Leading Omni-Channel Consumer Experience Retailer
- Build-A-Bear Workshop is a global brand that creates long-term
personalized relationships with its customers by marketing a wide
array of plush toys, accessories and consumer experiences.
Historically, sales were driven by a retail mall based footprint,
but the company has diversified its operating model to leverage the
power of its Build-A-Bear brand and include e-commerce, third-party
retail, licensing, and franchise operations.
- In our view, Build-A-Bear Workshop provides a unique customer
experience and its prime retail thrust drives traffic to its mall
locations. The company has successfully expanded its customer reach
to include adults and collectors, and has leveraged its loyalty
database to drive repeat customer visits, resulting in consistent
sales and profit growth. We view the recent resumption of parties
at its retail locations as a tailwind to its near-term growth
profile.
- In our view, the company's digital transformation has enabled
omnichannel capabilities that drive increased consumer traffic
across multiple channels. Recently, Build-A-Bear Workshop has been
successfully driving increased visibility and organic growth
through the creation of proprietary products and content, which are
complemented by a strong licensing partnership with over 75
world-class collaborators. In diversifying its revenue streams, the
company has continued to maintain strong control over its
inventory, which we see driving operating results that can continue
to return increased value to its shareholders through special
dividends and share repurchases.
- As of January 28, 2023,
Build-A-Bear Workshop had cash and cash equivalents of $42.2 million compared to $32.8 million at the end of fiscal 2021 with no
borrowings on its revolving credit facility.
- The company has repurchased more than 10% of its stock since
2021, and has shown a commitment to returning capital to its
shareholders. Including a special dividend paid in April 2023, Build-A-Bear Workshop has returned
more than $70 million to its
shareholders in the form of stock repurchases and dividends during
the past two years.
- Build-A-Bear's stock has recovered nicely from its lows at the
onset of the COVID-19 pandemic, but remains considerably below our
view of its strong fundamentals and prospects for continued growth.
Based on our P/E analysis, we arrive at a fair value estimate of
$45, well above current levels.
INVESTMENT THESIS: Click Here to view full Argus Equity
Research Report and Investment Thesis.
About BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW)
www.buildabear.com
Based in St. Louis, Missouri,
Build-A-Bear Workshop, Inc. is a global brand that develops and
markets a wide array of consumer-focused toys and experiences
through nearly 500 interactive brick-and-mortar locations, as well
as e-commerce/digital channels. The company also offers products at
wholesale and in non-plush consumer categories via licensing
agreements with leading manufacturers, and is expanding its brand
beyond retail by creating engaging content through social media
channels.
For more information please contact:
Voin Todorovic
CFO
vztodorovic@buildabear.com
314-423-8000 x5221
About Argus Research Corp.
Headquartered in NYC, Argus Research (www.argusresearch.com) is
a leading independent equity research firm (est. 1934) ̶
providing fundamental and quantitative research coverage on
more than 1,600 companies across all 11 sectors of the S&P 500,
as well as macroeconomic and equity market forecasts, thematic
research, model portfolios and IPO research. In addition, Argus has
recently committed to providing a sponsored research solution for
small & mid-cap companies seeking coverage. Argus's Equity
Research & earnings estimates are available on major research /
earnings estimate aggregator platforms, including Bloomberg,
Thomson Reuters, Factset and S&P Global.
For more information please contact:
Darrell Stone
646-747-5438
dstone@argusresearch.com
Argus Research Co. has received a flat fee from the company
discussed in this report as part of a Sponsored Research agreement
between Argus and the company. No part of Argus Research's
compensation is directly or indirectly related to the content of
this assessment or to other opinions expressed in this report.
Please refer to the full Argus report and the disclaimer for
complete disclosures.
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