Build-A-Bear Workshop (BBW) reported earnings on Thur 27 Oct 2016 (b/o)

** charts after earnings **

 

Build-A-Bear Workshop reports EPS in-line, misses on revs; reaffirms FY16 total revenue outlook, lowers comps, pre-tax income guidance; no update on review of strategic alternatives :

• Reports Q3 (Sep) earnings of $0.11 per share, in-line with the Capital IQ Consensus of $0.11; revenues fell 2.2% year/year to $83.75 mln vs the $85.5 mln Capital IQ Consensus.
• Consolidated comparable sales (stores and e-commerce) decreased 2.2% following a 2.2% increase in the fiscal 2015 third quarter. The fiscal 2016 third quarter included a 1.6% decrease in North America, following a 0.1% increase in the fiscal 2015 third quarter and a 4.8% decrease in Europe, following an increase of 9.8% in the fiscal 2015 third quarter. Consolidated comparable e-commerce sales increased 25.2%, following a 4.1% increase in the fiscal 2015 third quarter;
• In May 2016, the Company announced that its Board of Directors had authorized an exploration of a full range of strategic alternatives. The Company retained Guggenheim Securities, LLC as its financial advisor and Bryan Cave LLP as its legal counsel to assist with the strategic review. No timetable has been set for the Company's review process. The Company does not expect to comment further or update the market with any additional information on the process unless and until its Board of Directors deems disclosure appropriate or necessary.
• Outlook:
  • Co continues to see total revenue to increase in the low single-digit range compared to the prior year
  • Sees Q4 consolidated comparable sales increasing in the low- to mid-single digit range resulting in consolidated comparable sales in the range of negative low-single-digit to positive low-single-digit for the 2016 fiscal year (Previously saw FY consolidated comparable sales increasing in the low single-digit range)
  • Pre-tax income to grow 5% to 15% compared to the prior year GAAP results, which reflects current foreign exchange rates. Excluding the impact of foreign exchange, pre-tax income is expected to grow 15% to 25% (Previously saw pre-tax income growing 10% to 20% compared to the prior year GAAP results, which reflects its current estimate of foreign exchange. Excluding the impact of foreign exchange, pre-tax income was expected to grow 15% to 25%)