Argus Research Initiates Equity Research Report Coverage on BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW)

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Apr 17, 2023, 07:45 ET

NEW YORK, April 17, 2023 /PRNewswire/ -- Argus Research, an independent investment research firm, has launched Equity Research Report coverage on BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW).

Click Here to view full Argus Equity Research Report.

COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus Analyst Steve Silver) include:

BBW: Leading Omni-Channel Consumer Experience Retailer

Build-A-Bear Workshop is a global brand that creates long-term personalized relationships with its customers by marketing a wide array of plush toys, accessories and consumer experiences. Historically, sales were driven by a retail mall based footprint, but the company has diversified its operating model to leverage the power of its Build-A-Bear brand and include e-commerce, third-party retail, licensing, and franchise operations.
In our view, Build-A-Bear Workshop provides a unique customer experience and its prime retail thrust drives traffic to its mall locations. The company has successfully expanded its customer reach to include adults and collectors, and has leveraged its loyalty database to drive repeat customer visits, resulting in consistent sales and profit growth. We view the recent resumption of parties at its retail locations as a tailwind to its near-term growth profile.
In our view, the company's digital transformation has enabled omnichannel capabilities that drive increased consumer traffic across multiple channels. Recently, Build-A-Bear Workshop has been successfully driving increased visibility and organic growth through the creation of proprietary products and content, which are complemented by a strong licensing partnership with over 75 world-class collaborators. In diversifying its revenue streams, the company has continued to maintain strong control over its inventory, which we see driving operating results that can continue to return increased value to its shareholders through special dividends and share repurchases.
As of January 28, 2023, Build-A-Bear Workshop had cash and cash equivalents of $42.2 million compared to $32.8 million at the end of fiscal 2021 with no borrowings on its revolving credit facility.
The company has repurchased more than 10% of its stock since 2021, and has shown a commitment to returning capital to its shareholders. Including a special dividend paid in April 2023, Build-A-Bear Workshop has returned more than $70 million to its shareholders in the form of stock repurchases and dividends during the past two years.
Build-A-Bear's stock has recovered nicely from its lows at the onset of the COVID-19 pandemic, but remains considerably below our view of its strong fundamentals and prospects for continued growth. Based on our P/E analysis, we arrive at a fair value estimate of $45, well above current levels.

INVESTMENT THESIS: Click Here to view full Argus Equity Research Report and Investment Thesis.

About BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW) www.buildabear.com

Based in St. Louis, Missouri, Build-A-Bear Workshop, Inc. is a global brand that develops and markets a wide array of consumer-focused toys and experiences through nearly 500 interactive brick-and-mortar locations, as well as e-commerce/digital channels. The company also offers products at wholesale and in non-plush consumer categories via licensing agreements with leading manufacturers, and is expanding its brand beyond retail by creating engaging content through social media channels.

For more information please contact:

Voin Todorovic
CFO
[email protected]
314-423-8000 x5221

About Argus Research Corp.

Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934) ̶ providing fundamental and quantitative research coverage on more than 1,600 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and IPO research. In addition, Argus has recently committed to providing a sponsored research solution for small & mid-cap companies seeking coverage. Argus's Equity Research & earnings estimates are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.

For more information please contact:

Darrell Stone
646-747-5438
[email protected]

Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research's compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.

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