ST. LOUIS - Build-A-Bear Workshop, Inc. (NYSE: BBW), the company renowned for its customizable teddy bears and other plush toys, has declared a quarterly cash dividend of $0.20 per share. This dividend is slated for distribution on July 11, 2024, to shareholders who are on record as of June 27, 2024.
The announcement comes as part of the company's ongoing commitment to deliver value to its shareholders. Build-A-Bear Workshop has a history that stretches back to 1997, where it has established itself as a brand that spans generations, offering a unique and interactive retail experience. Customers at Build-A-Bear create personalized stuffed animals through an immersive process that includes stuffing, dressing, and naming their toys.
Build-A-Bear's reach extends beyond its physical locations, which include over 500 company-owned, partner-operated, and franchise stores worldwide. The brand has also embraced e-commerce with sales through its website and has diversified its product offerings through licensing agreements and content creation via its subsidiary, Build-A-Bear Entertainment.
For fiscal 2023, Build-A-Bear Workshop reported consolidated total revenues of $486.1 million. However, while the dividend declaration may signal confidence, the company's forward-looking statements caution investors about potential future changes to dividend payments. According to the press release, future dividends are subject to the Board of Directors' discretion and may be influenced by various factors, including market risks and business performance.
Investors are reminded of the inherent uncertainties in forward-looking statements, which do not guarantee future performance. Factors that could cause actual results to differ and potentially impact dividend payments include those discussed in the company's filings with the Securities and Exchange Commission.
This dividend announcement is based on a press release statement from Build-A-Bear Workshop, Inc. and does not imply any future performance or guarantee of subsequent dividend declarations.
In other recent news, Build-A-Bear Workshop, Inc. experienced a revenue decline in the first quarter of 2024, witnessing a 4.4% drop to $114.7 million compared to the previous year, primarily due to lower web demand and a calendar shift.
Despite these challenges, the company reported $15 million in pre-tax income and has announced plans for the opening of 50 new experience locations. The company maintains its commitment to growth and has returned over $12 million to shareholders through dividends and share repurchases.
Build-A-Bear's commercial revenue saw a 13.7% decrease due to timing issues with product shipments, while gross margin improved slightly, up 10 basis points. However, SG&A expenses rose by 350 basis points, impacted by higher wages and inflation. The company's cash balance increased to $38.2 million, showcasing its robust financial health.
In terms of future expectations, Build-A-Bear plans to grow total revenue and pre-tax income on a mid-single-digit basis for the full year. The strategy includes expanding with at least 50 net new experience locations and focusing on international and partner-operated expansion. Efforts are also underway to improve web traffic and conversion rates, with expectations to keep SG&A expenses at or below the 2023 level. These recent developments highlight Build-A-Bear's resilience and strategic approach to overcoming current challenges.
InvestingPro Insights
In the wake of Build-A-Bear Workshop's recent dividend announcement, a glance at the company's financial health through InvestingPro metrics reveals a robust picture. With a market capitalization of $353.26 million USD, the company showcases stability in the retail sector. Impressively, Build-A-Bear holds a P/E ratio of 7.36, hinting at an attractive valuation when aligned with its near-term earnings growth. This is further corroborated by an adjusted P/E ratio for the last twelve months as of Q1 2025, which stands slightly lower at 7.07.
An InvestingPro Tip highlights that Build-A-Bear Workshop has a perfect Piotroski Score of 9, which is a strong indicator of the company's financial strength. Moreover, management's strategy of aggressively buying back shares can often be interpreted as a signal of confidence in the company's future prospects.
Moreover, the company's gross profit margin for the last twelve months as of Q1 2025 is at a healthy 54.55%, showcasing its ability to maintain profitability amidst operational costs. Investors may also find comfort in the fact that the company's liquid assets exceed its short-term obligations, providing a cushion for future financial flexibility.
For those interested in a deeper dive into Build-A-Bear's financials and strategic outlook, InvestingPro offers a wealth of further insights. There are 9 additional InvestingPro Tips available, which can be accessed through the platform. To enrich your investment strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. These tips and metrics can provide a comprehensive look at the company's performance and potential, helping investors make more informed decisions.
As Build-A-Bear Workshop continues to navigate the retail landscape with its unique interactive offerings and e-commerce strategies, these financial metrics and expert tips from InvestingPro can serve as valuable tools for shareholders and potential investors alike.
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