American Retail Firm Build-A-Bear Workshop Lowers FY23 Outlook, Stock Tanks
Portfolio Pulse from Anusuya Lahiri
Build-A-Bear Workshop Inc (NYSE:BBW) reported a slight increase in Q3 FY23 sales but missed analyst expectations, with sales of $107.6 million versus the consensus of $108.1 million. EPS was $0.53, beating the estimate of $0.51. E-commerce demand grew by 7.1%, and gross profit rose by 4.2% Y/Y. However, the company lowered its FY23 revenue outlook from 5%-7% to 3%-5% and adjusted its capital expenditure forecast. Following the report, BBW shares dropped by 10.90% in premarket trading.
November 30, 2023 | 2:13 pm
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NEGATIVE IMPACT
Build-A-Bear Workshop reported mixed Q3 results with a revenue miss and an EPS beat, but lowered its FY23 revenue outlook, leading to a 10.9% drop in premarket stock price.
The lowered revenue outlook for FY23 is a negative signal to investors, indicating potential challenges ahead. This, coupled with the premarket stock price drop, suggests a bearish short-term impact.
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IMPORTANCE 90
RELEVANCE 100