Shares of Build-A-Bear Workshop saw a notable increase in premarket trading following the release of their fiscal second-quarter results. The popular stuffed-animal retailer reported higher sales and profit, driving investor optimism.
Impressive Sales Numbers
Build-A-Bear Workshop reported sales of $109.2 million for the three months ended July 29, representing an 8.5% increase compared to the same period last year. Notably, e-commerce sales were up 14% during the quarter, indicating strong online growth for the company.
Rising Profits
Profits also witnessed a significant boost, with a rise from $5.8 million, or 38 cents a share, to $8.3 million, or 57 cents a share, year over year.
Outperforming the Retail Industry
Build-A-Bear Workshop CEO, Sharon Price John, shared that the company's store traffic surpassed national retail averages. This signals a remarkable achievement in customer engagement and reinforces the brand's strong performance amidst tough market conditions. Furthermore, John highlighted the successful digital transformation efforts, which have contributed to a considerable 40% of sales now being generated by teenagers and adults.
While shares were already up about 2% for the year, this positive report may further bolster investor confidence. Build-A-Bear Workshop's stock rose by an impressive 17% during the premarket session, reaching $28.50.
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