Build-A-Bear Workshop, Inc. Raises Guidance for Fiscal Year 2019 for Total Revenue and Pre-tax Income
January 14 2020 - 6:45AM
Business Wire
Company to Present at ICR Conference at 9am
ET, today
Build-A-Bear Workshop, Inc. (NYSE: BBW) updated its financial
guidance for fiscal year 2019 ahead of its presentation at the 22nd
Annual ICR Conference. The Company is raising its guidance for
fiscal 2019 from what was previously issued on December 5,
2019.
On a preliminary basis for the 2019 fiscal year (52-weeks
ending February 1, 2020 compared to the 52-weeks ended February 2,
2019), the Company currently expects:
- Total revenue for the fiscal year to be in the range of $334
million to $338 million compared to $336.6 million in fiscal year
2018. The projected total revenue for fiscal 2019 includes fourth
quarter total revenue that is expected to be flat to slightly
positive reflecting growth in December and continuing momentum in
the final month of the period. The Company believes that it has
benefitted from its gift giving programs including stronger gift
card sales leading to higher redemption rates post-holiday; it also
expects to deliver its ninth consecutive quarter of double-digit
eCommerce growth;
- Pre-tax income to be in the range of $0.1 million to $2.0
million compared to a pre-tax loss of $18.5 million in fiscal year
2018; and
- Cash and cash equivalents to end the year in the range of $25
million to $30 million compared to $17.8 million at the end of
fiscal 2018; the Company is projected to have no borrowings under
its revolving credit facility at year-end.
Sharon Price John, Build-A-Bear Workshop Chief Executive Officer
commented, “We are pleased to have seen a positive shift in sales
trend as the fourth quarter progressed leading into the peak
holiday period and sales have continued to grow post-holiday with
stronger gift card redemption levels and positive consumer response
to our newest merchandise offerings leading us to increase our
guidance for the year. In addition to the improvement in our retail
store base, we are also pleased with the continuing progress in our
eCommerce segment which we expect to deliver a ninth consecutive
quarter of double digit growth, a pattern than has been consistent
since we implemented an upgrade to our platform in 2017. While we
expect traditional retail to remain challenging on a macro basis,
we believe that our projected results for 2019 demonstrate the
long-term viability of our strategic plan to diversify our retail
portfolio, leverage consumer affinity and demand for our strong
brand and advance key initiatives that we expect to further evolve
our business model into margin-accretive revenue streams.”
The Company is scheduled to present at the 22nd Annual ICR
Conference held at the Grand Lakes Orlando, in Orlando, FL., on
Tuesday, January 14, 2020, at 9:00 a.m. EST. The presentation will
be broadcast over the internet and can be accessed at the Company’s
investor relations website, http://IR.buildabear.com. The
presentation is expected to conclude by 9:25 a.m. EST. A replay of
the broadcast will remain on the Company’s investor relations
website for one year.
About Build-A-Bear Workshop, Inc.
Build-A-Bear is a global brand kids love and parents trust that
seeks to add a little more heart to life. Build-A-Bear Workshop has
more than 450 stores worldwide where Guests can create customizable
furry friends, including corporately-managed stores in the United
States, Canada, China, Denmark, Ireland, Puerto Rico, and the
United Kingdom, and franchise stores in Africa, Asia, Australia,
Europe, Mexico and the Middle East. Build-A-Bear Workshop, Inc.
(NYSE: BBW) posted total revenue of $336.6 million in fiscal 2018.
For more information, visit the Investor Relations section of
buildabear.com.
Forward-Looking Statements:
This press release contains certain statements that are, or may
be considered to be, “forward-looking statements” for the purpose
of federal securities laws, including, but not limited to,
statements that reflect our current views with respect to future
events and financial performance. We generally identify these
statements by words or phrases such as “may,” “might,” “should,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,”
“predict,” “future,” “potential” or “continue,” the negative or any
derivative of these terms and other comparable terminology. All of
the information concerning our future liquidity, future revenues,
margins and other future financial performance and results,
achievement of operating of financial plans or forecasts for future
periods, sources and availability of credit and liquidity
(including our ability to amend our credit facility on a timely
basis on terms acceptable to us or at all), future cash flows and
cash needs, success and results of strategic initiatives and other
future financial performance or financial position, as well as our
assumptions underlying such information, constitute forward-looking
information.
These statements are based only on our current expectations and
projections about future events. Because these forward-looking
statements involve risks and uncertainties, there are important
factors that could cause our actual results, level of activity,
performance or achievements to differ materially from the results,
level of activity, performance or achievements expressed or implied
by these forward-looking statements, including those factors
discussed under the caption entitled “Risks Related to Our
Business” and “Forward-Looking Statements” in our Annual Report on
Form 10-K filed with the Securities and Exchange Commission (“SEC”)
on April 18, 2019 and other periodic reports filed with the SEC
which are incorporated herein.
All of our forward-looking statements are as of the date of this
Press Release only. In each case, actual results may differ
materially from such forward-looking information. We can give no
assurance that such expectations or forward-looking statements will
prove to be correct. An occurrence of or any material adverse
change in one or more of the risk factors or other risks and
uncertainties referred to in this Press Release or included in our
other public disclosures or our other periodic reports or other
documents or filings filed with or furnished to the SEC could
materially and adversely affect our continuing operations and our
future financial results, cash flows, available credit, prospects
and liquidity. Except as required by law, the Company does not
undertake to publicly update or revise its forward-looking
statements, whether as a result of new information, future events
or otherwise.
All other brand names, product names, or trademarks belong to
their respective holders.
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version on businesswire.com: https://www.businesswire.com/news/home/20200114005230/en/
Investors: Voin Todorovic Build-A-Bear Workshop 314.423.8000
x5221
Media: Public Relations PR@buildabear.com
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