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Build-A-Bear Earnings: BBW Stock Climbs 17% Despite Q2 Miss

Build-A-Bear (NYSE:BBW) earnings for the second quarter of fiscal year 2020 have BBW stock rising higher and higher on Tuesday. That’s despite its adjusted earnings losses per share of 82 cents, which is below Wall Street’s estimate of an 80-cent loss. However, the company’s revenue of $40.35 million crushed analysts’ estimate of $31.79 million for the quarter.

Build-A-Bear (BBW) workshop toy store shopping mall entrance in Burlington, Massachusetts

Source: QualityHD/Shutterstock.com

Furthermore, the company reported GAAP losses per share of 93 cents during the period.

Here are some additional highlights from the most recent Build-A-Bear earnings report.

  • Adjusted EPS is way worse than the 2-cent loss from the same time last year.
  • Revenue comes in 49.1% lower than $79.21 million reported in the fiscal second quarter of 2019.
  • The Build-A-Bear earnings report also includes a net loss of $13.91 million.
  • That’s much worse than the net loss of $1.22 million during the period of the year prior.

Sharon Price John, president and CEO of Build-A-Bear, said this about the BBW stock earnings report:

“Our second quarter results show the impact of store closures in response to the COVID-19 pandemic and the significant shift to e-commerce which increased nearly 300% for the period. We put actions in place to drive sales while reducing inventory and leveraging the high optionality that we had in place with leases to renegotiate terms on approximately 95% of our store locations to date. In addition, strict expense management, revised marketing activities and a corporate reorganization contributed to $14.2 million in cost savings, or a 40% reduction, as compared to the prior year’s second quarter.”

The company does not mention any sort of guidance for FY2020. That said, we know what Wall Street is expecting for the period. Analyst estimates call for adjusted losses per share of $1.94 on revenue of $234.63 million.

BBW stock was up just 17.1% as of Tuesday morning

On the date of publication, Nick Clarkson did not hold a position in any of the aforementioned securities.

Nick is a web editor at InvestorPlace.


Article printed from InvestorPlace Media, https://investorplace.com/2020/09/build-a-bear-earnings-bbw-stock-climbs-17-despite-q2-miss/.

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