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Build-A-Bear Workshop Inc. (BBW+2.24%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports a total revenue increase of 11.0% compared to the same quarter in the previous year, driven by a 9.1% increase in net retail sales and a 43% increase in commercial revenue.
Retail gross margin increased to $59.4 million, with a 160 basis point improvement in the retail gross margin rate due to lower merchandise, freight, and occupancy costs.
Selling, general, and administrative expenses remained consistent at 43.3% of consolidated revenue, with lower advertising and IT costs offset by higher wage rates and healthcare costs.
Net income for the quarter was $9.87 million, with an effective tax rate of 24.5%, compared to $7.59 million in the previous year.
Build-A-Bear's cash balance as of November 2, 2024, was $29.0 million, with a decrease in cash provided by operating activities primarily due to increased inventory purchases.
The company repurchased 147,917 shares of its common stock during the quarter, utilizing $4.8 million in cash.
Build-A-Bear operates 362 corporately-managed stores globally, with plans to expand its footprint in non-traditional locations and international markets through partner-operated and franchise models.
The company continues to focus on digital transformation and brand expansion strategies to drive growth and profitability.
Build-A-Bear's strategy includes leveraging its brand strength to expand its retail and e-commerce presence, with a focus on experience locations and non-plush consumer categories.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Build-A-Bear Workshop Inc. quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.