BBW - Earnings call transcript Q2 2021 | Build-A-Bear Workshop, Inc.

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Operator

Greetings, and welcome to the Build-A-Bear Workshop Second Quarter Fiscal 2021 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. ICR. of Malkin Allison go please ahead. you, Thank

Allison Malkin

you Good me us With joining Sharon morning. Price CFO. Thank are Todorovic, John, today. Voin for CEO; and

our more year. After, Sharon a will review performance call, begin and Voin our second guidance financials of in and the today’s XXXX quarter for For outlook the fiscal detail. will discussion with

statements. over forth the both to that, forward-looking number Form turn company’s corporate that available forward-looking broadcast results to Annual materially question have Factors site. We currently everyone’s everyone requeue website. we remind of I uncertainties. A limit to XX-K. your obligation you We after via open to replay call risks earnings subject The in I of the that one-hour way, this will and due on Report is this will the our the from Sharon. our the Please call portion available during if today Members be to This to with differ would on release like to us on call later question call and ask and one anticipated call. We those contact then questions. your can to With Actual factors, follow-up. section webcast get including are our should take is further your IR live a set inherently questions. any be statements free could will media revise conference one call questions may note, Feel on Risk of internet. call questions. now Investor the and in those the to undertake who Relations the you this today recorded being no of

Sharon Price John

and quarter everyone, joining our for discuss results fiscal Good today for of the Thank you, second us to morning, XXXX. thanks Allison.

our of accelerate the the that achieved we funds. environment guests, quarter, profit of a also stimulus from engaging Accordingly, a areas, the team recognizing environment, fiscal to benefiting across ability those our to far have in our as to for existence. and to results highest pandemic-related evolving such profitable while to first the work associates our to history momentum working building half and quarter. we on to warehouses be profit our our virtual pleased coming agility to strategy, fulfill our a in have in these We’re been that factors, key our highest to growth, believe continue business heels proud orders. from rapidly sustained is nearly initiatives move second all in demand record has XX-year for stated reflect store thus from adapt pent-up drive delivered first the with and enthusiastically XXXX setting execution inventory from profit company’s continue of a corporate our where and to in I We

to our associates remained dedicated Our nimble to mission a add have heart little more to life. and

consumer mobility continued given quarter we and chain, the its to third on and due and the While changes uncertainty with COVID-XX cautious impact supply remained began we course appropriately strength.

million, reflected We’re the opportunities $XX.X decade. from reaching quarter, results the fiscal XXXX almost in and quarter’s continue The morning. the the this in were second level Total performance half the in up up – XXXX ahead revision favorable XXX% announced XX% in from outstanding. which second year, the that guidance over was lie revenues excited annual to about our quarter is of the that were highest in a upward second

ship the as XXXX our the strength so channel, coming from with year, store, our such benefit relationship or with and omni-channel ships. pickup delivery isn’t showing and store temporarily Our day predominantly were the or including enhanced relevant from either from stores same capabilities, brick to mortar is last that in closed comparison buy this online

digital XX% over was While XXX% declined demand demand by by compared to up e-commerce XXXX, fiscal XXXX.

digital While temporary a and previously demand, online had launches store which e-commerce year’s we than was in supply noted some greater in driven decline exclusive by licensed closures at and been expected, had The our buoyed by prior the and powerful launches the anticipated of select decrease delayed disruptions products. properties. chain

by gross improved total profit of quarter margin revenues. Second XX.X%

triple-digit the reflects expansion to Our profit And pre-taxed an lease of XXXX of negotiation, second quarter income margin fixed company’s second from the compared incurred and expense increase from an leverage quarter. improvement of of benefit ongoing in higher over XXXX. with second quarter, million in fiscal million we million, over we highest and the margin $XX in loss delivered of occupancy the pre-tax history, merchandise $X.X our the a $XX year’s last

As are we’ve which on year, previously focused our priorities on centered shared, key we strategic the for remained three areas.

acceleration our further transformation, First, content and including of entertainment initiatives. digital

And including capacity. to e-commerce leveraging increase solid omni-channel value. to expansion position, and significant sheet experiences, business us our a and balance capabilities enable of retail and strategic shareholder to investments our designed financial growth evolving and further rapidly finally, strong including support make our Second, our drive

efforts. because. diversify and our making that platform improved our is second acceleration that our we this building while quarter, leveraging digital believe the ability more and moments positive expanded area. platform these We multi-generational as enhanced and drive of multi-year effective of we enhancing grow to Day, e-commerce In we Day, intent we inform Mother’s use the business gifting content the demonstrates technology in occasions including gifting opportunity. and to continued digital believe digital that demand and Regarding on well investment We transformation, our fulfillment expanded and marketing during consumer segments in have achieved our leverage are as with Father’s to an are and capabilities, progress graduation just trajectory

in all invest to channels. capability our to demand continue expand fuel to We platforms across

that refine. we cloud-based in and initiated are We of to continue technology through driving new sales use and positive results XXXX enhanced

drive We providing initial habits. are guests by connect with able target as as well engagement guests new buying individual on offering existing based to transactions more personalized to effectively and

suite recently in further lifetime expect bonus an active household of our our invested additional As well members us and we which to leverage millions to capability, allow focus digital to continue loyalty as with to club as value to database. visits the drive increase new on Salesforce, we we repeat accelerating add members

to this early new implement expect We technology next year. by

Sony award-winning sales new action continue tool feature our Brooks. Star, and to movie line In top-selling affinity building for Pictures media October to as Media addition, to of stores. be well plan is online our released an film, and entertainment as Digital our traffic to in buzz Honey updated and shop launch in successful inspired by range Grammy artist, historically We Honey to merchandise and both Ashanti, late Girls, both the as marketing conjunction Girls the with Tessa in brand look demand we in live acquisition. use engage content and We Worldwide digital leverage stores. to drive interest of product speed to consumers forward and and and multi-platinum expected drive The upcoming online starring

our rapidly is to second retail progress. show Our continues which capabilities, evolve to initiative,

and more consumers expanding changing to sales their connect ways trends. offering engagement by are meeting omnichannel our contributing driving needs We is we and positive believe delivery are choices, which to

quarter. stores Our Kingdom and United predominantly XXXX stores North American second our throughout were open

compared that approximately were historical XXXX. continued to XX% we trail geographies values higher drove transaction traffic to across levels, up While

in Panama included stores tourist in opened has in recently in strong evolution strategic Our estate With ICON tourist which in we of Rivercenter Orlando, locations, and many been Park River City mind, results in the growth priority in new several real Walk San along including Antonio. Park sales of in portfolio. the Pier a our our this locations,

optimize our portfolio a maintained XX% lease years our with continue In we leverage estate leases natural we optionality to that in real strong event addition, to next give our corporately strategic having locations. flexibility the us managed the of three have to across

goal a contribute strategic store our and omnichannel memorable strong relationships supporting objectives, to including Our with to creating guests. expanded maintain our capabilities overarching base our is that

retail have Resorts Cruise and a recently our at Beaches to some stability which Carnival return Great also Line, Lodge, Family staggered to which includes seen We Wolf workshops operation. third-party return model, began

expand to the typically the each The of the in inventories while managing also third-party staffing. a partner operations model store, cost-efficient investment locations and funding allows us their to retail capital open manner with

third regarding a with the strength our company’s balance and of strong we position a for in financial nearly As priority quarter double health, cash ended year sheet ago. the a from

initiatives our key we we to evolving relates would it investment have our a headwinds optionality opportunities and rapid At our to and flexibility to pandemic. programs As ongoing elected time, company. and of cash navigate from grow to enable emerging acceleration priorities, maintain as we continue newly this more an strategic evaluate that

the sweet planning that to look our in entire will year, an drive of September last National we annual Bear of to in new that database half stake designed are the Day Teddy add with and line. month back celebration we product feature our interest further a and contact to event the the is As

and of Following the collection, build for which demand products quarter the segments. to we on our highest success expanded that, expect for last consumer fourth saw year we an gift-giving the have Halloween as we all year brings the

positive wage external chain to want a some year, pressure for variables inflationary voice supply the of outlook such and We given half do as but back have caution macro disruption. the

recruitment inventory issues these price moves, purchases, to accelerating and and increases employee closely monitor and retention proactive plans. continue We made have updated select including

we key we sustained strategy success on As and in profitable look our to to on our goal the XXXX order achieve that we remained focused of in seeing building forward are initiatives. stated growth,

factors, We additional more giving expect digital by enabling expanding several our capability and be to participate and to transformation, company our in economy. the our including accelerating aggressively growth fueled digital us

a tools, more products base to allowing enhanced broadened us innovative and Our reach gift-giving consumer efficiently. marketing

Our drives interest engaged segment. affinity best-in-class from that license relationship

and as third-party level to and of optionality leverage such ability expansion a Our diverse option. formats multiple models retail high opportunities lease including store our

as position quarter to leverage our earlier. – the business have forward. support with such as trends about finally, In continued entertainment, with a movie Our a optimistic I our to coming noted high we consumers, incremental our closing, including with brand, strong the emotional and to solid and third interest use Girls balance date, October consumers content third-party as growth strength Honey move financial sheet connection for in of that are keep in we ability to

XXXX fiscal again to have year-end. look profit our and guidance forward We raised

made diverse pleased that multiple have strong across our base to We to brand we our broad leverage of the are appeal with forward to channels. and look continuing progress consumers and

call financial more over Now let to the turn our review detail. to me Voin results in

Voin Todorovic

Thanks, Sharon, good everyone. and morning,

income to operating profit to our report quarter, able We of at the our the solid and company margin to for of key as in ever we the further delivered record-breaking six momentum the the Combined pleased history. focused profitable we level in improvement most demonstrating compared highest continue levels our were showed months build with by XXXX are to the team. our revenues, second quarter, very quarter supported first by as strategy, initiatives second well. Total gross profit pre-pandemic execution validity our first

cautious As appropriately of COVID-XX path Sharon supply noted, the year, stemming the given disruptions. at potential are look the we headwinds from uncertain we chain balance as and of

However, for our guidance a our first and more trends strong confidence the minute. and increase for give positive continuing just us in performance fiscal in I will EBITDA half total year the discuss which revenues XXXX to detail further

were XXX% more comparisons due second to a XXXX. revenues which and closures store detail of increase second temporary XXXX results, COVID-related to include both XX.X% give quarters second year. and a the to for XXXX $XX.X the last compared fiscal quarter me compared let quarter Total increase our XXXX million, First, to

growth brand are customers believe We pleased have we that but engage reflects factors, strong see our in by and fueled and partially also to personal the their experiences. the to desire ongoing for affinity pandemic-related hands-on

to the Our an to driven average America quarter highest total geographies. benefited XX% level renegotiated in reached XX.X% in respectively. for sales which in second was which lease the quarter in grew significantly from XXXX prior growth allowed Gross started the XXXX higher and value and fixed North quarter, us increase which fiscal year’s than XXXX fiscal expense effect occupancy across XX.X% second and in over primarily profit leverage margin a The was by of XXXX. strong results terms, of to transaction revenues take XX.X% growth compared second the of

we selectively discounting markup inflationary by mitigate also anticipate ongoing both as margin rates that supply and and SG&A merchandise increased the the Our we future. on to chain headwinds higher for dollars products driven lower foreseeable certain raised XXXX prices and compared both second to being quarters. pressures XXXX expanded

the XXXX. The versus expanded and years given operating XX.X% labor higher percent store year and XX.X% of improved to to in locations hours. SG&A However, SG&A prior driven as compared increase expenses a total the XX.X% revenues of in reopening last by was dollars

We year wage XXXX when this also recorded cost initiatives fiscal containment to included temporary full pandemic as corporate salaries opposed related reductions.

million. in second in the loss In half. quarter history inclusive have addition, $XX a of million with the costs of sales incentive prior very quarter performance of increase of highest had in the loss spend Notably, fiscal the marketing SG&A driven second This quarter compares to record-breaking of higher pretax quarter $XXX,XXX to a company’s XXXX. an and successful in variable programs. first $X.X by we in a second profit, growth change XX-year and pretax funding year’s first profit delivered nearly we pretax reflects and of our Accordingly, initiatives,

first increase XXX% XXXX, months were fiscal six the and XXXX million the was EBITDA months loss in to from months And first increase total of an of income $XX.X to XX% six the increase compared $XXX.X was million, the versus to of six of million an six of of fiscal Pretax $XX.X months first first million, of of six million, $XX $XX compared and six $XX.X an first six fiscal fiscal of the over months improvement For pretax the months million months XXXX. the and million first of XXXX. XXXX. of $XX revenues to increase compared first the fiscal recorded XXXX XXXX an compared fiscal

of equivalents with million borrowings no with balance sheet. the our on cash cash credit to ended facility. second and $XX.X the quarter Turning We

second inventory balance is timing was of inventory cash capital year’s from quarter. quarter a Our end, million, $X and inflated reduction of expenditures. receipts somewhat from At down XX.X% last

supply as timing collections our proactively to evergreen core and increased and disruptions. support of efforts our mitigate merchandise part business for momentum our to of have the chain ongoing We products placements accelerated quantities and

increased impact Assuming needs. to XXXX ends we and are additional targeting no the XXXX compared COVID have material store business our factories, anticipated operations, year logistics, meet consumer fiscal to both in either sentiment or levels inventory to of

In addition, in supporting a our to are to of investments, generate strategy. expected use focus our support of capital that will strong continue on return initiatives

there we our the COVID and continue to no are half first a disruptions expect the additional as $X.X $XX capital year year, in assuming availability For Also were to total May are of we this cash first again, improve, payments invest performance conjunction expenditures significant or on million fiscal related to on services. second and guidance anticipating close full goods release million, our basis, we delays in EBITDA XXXX quarter what on quarter for expectations trends, Based year. are making with raising XX. strong shared tax and as our for to we performance and positive revenues our earnings our of compared

$XX fiscal an total to of revenues $XXX the the the range of range guidance total be previous EBITDA to expect revenues currently we revenues our range our from in of to of $XX be Specifically, million, million for fiscal for in which $XXX previous $XX increase million, million. to represents in expectation million XXXX exceed million, EBITDA XXXX and an $XXX.X $XX from million increase to total to

to continue the expect we million million. addition, depreciation of amortization $XX range and In $XX to in

That in growth total As trends it from to expect is and year. our have our of in stores, as have remained press were we third XXXX both the closed and morning’s which as partially relates exceed last strong, XXXX recapture to quarter, levels. sales revenues release, this noted, coming I sales noted physical

last to expect year’s a over remain increase XXXX. third representing still e-commerce flat while demand our We quarter quarter, with triple-digit third

in in year’s overall last to closings. costs quarter resulting COVID higher to from part and expenses mitigate reductions by payroll expect third higher temporary marketing We driven have

our quarter the the as historically is is in third have historically expect and The of currently a to We quarter generally – year smallest period. loss is typical. pre-tax

initiatives, while see guidance growth. of in the expense Our savings we reduction In we from additional our full minimum mind XXXX, to and performance-based months reflects initiatives marketing product, pleased record quarter. six our questions. the Accordingly, we impact payroll such no We our momentum and our are key third are as year projections turn inflationary first well to freight far includes the as prepared keep impact as store the remarks. of selling mandates. a position annualized business wage for and funding that to significant so fiscal of achieve implemented the to operator prolonged closing, long-term the on we from of support due Please are profitable in increases. with and focused remain assumes back to our in drive current strategic in sustained confident government now also pressures guidance execution Operator? pandemic, closures accelerating And we incentive to growth. that expect higher programs, expenses guidance from negative concludes over will call This goal the of our

Operator

you. now Please questions. Beder Thank is coming for [Operator SCC The Instructions] of Our first ahead. is Eric from go floor Research. question open

Eric Beder

on Congratulations great a morning. quarter. Good

Voin Todorovic

Thank you, Eric.

Sharon Price John

Eric. Thanks,

Eric Beder

ask this you When let look – it at me differently.

So demand of was there lot from COVID. tremendous you’ve picked obviously customers a and here pent-up up

opportunity how forward? do do you that feel many-time So going here? customer a an And converting look upon as customer you about into first-time that how

Sharon Price John

Yes. Eric. Thank for you question, the

You are correct.

some in of February much from And what flipped opening the system there years. new in business portions the this that that up switch XXXX. some believe that management over of we do with interestingly, made the was stimulus infrastructure, of this we impact demand, warehouse remarks, of funds. is our the changes we are particularly Salesforce factors pent-up some from and technology, do IT, that combination course the believe As we relationship a the we’ve implemented of growth. is prepared noted of of But the e-commerce, the some Yes, in ship to of final fundamental ability stores, driving on

enabled synergistic. of in way, to interesting it’s this it’s where All almost that us if very manage a as

So have into relationship coming drive yes, omni our journey program but ways stores, lifetime back to enhance we to whether that loyalty or that with them, and people it’s are capture opportunities, new and them reengage value. to

Now to answer. answer the question specific that your depends it of background, with all is

of might we that in traditional that the and know for they a the are they with Build-A-Bear use into when before, this have came will of through our purchased lot got be we – traditional and property ways they’ve we birthday for they when time, what in – provided may what these that even information why under, XX have or more Some they they’re why based consumers their engage shopped on is. do them first data how our perhaps, XX% next loyalty if

competitive gift, push option other an optional natural efforts of as internet were realm And a collectability On XX% If will products. served has with people of in the year, XX-plus, of get gifting with a thinking send out are us mindset just separated, little of we there’s, particular let as a data in is of gifting likely and us. Interestingly, the that, some them that’s remarks, that adult as side, someone a a depends we’re them tweens to adult-to-adult the that about fan, an wide in – gifting, that of for them. about lot then and programs, our past new going making Build-A-Bear gift If Build-A-Bear opportunities. of that engage still this highly lot a that adults teens, just the people engaging reengage evolving to of because know it’s in the And gifting we’re some learning to they’re opportunity, up that working are on us, they I the because to big line. in of bit for the There’s and we how reach that of affinity for on as believe variety us with really a that a they and opportunity these Pokémon to forward. reasons. us heart wanting are shopping example, shift the next sort mentioned Build-A-Bear

Eric Beder

just follow-up And a here. Great.

more as those it a the way something the third-party are indicator what lagging if up going stays franchising, those thinking business, pursue seeing than Should more ramp of the going to more – much they be little start international COVID to be much that bit seem opportunities – we So more forward at a stores. you’re to to aggressively once become is, again? about

Sharon Price John

roll And Carnival launch Wolf is is, getting a Great obvious Lodge from for believe, of as the and running. bit is third-party new staggered of aside, number we of memories quite Yes. advantageous now sort to least the the for – locations Cruise just the loyalty up it’s and But that us gets new COVID which as capital required on to of experience we Eric. differently not generation tracking Line, create rest reasons, opportunity next a is and new lower the retail And bifurcated, not – fleet. the Build-A-Bear. new guests, fronts, our out the members

do have the low and expansion – we on So that time opportunity right take we of locations, on tourist be that few working types destinations. in our of experience tend how capital drive are to the a which and things we this all

Eric Beder

luck to Good half. the Great. back

Sharon Price John

so Thanks much.

Voin Todorovic

Thanks.

Operator

Thank you.

is ahead. question Management. David Wealth next of Cannon Please coming from go Cannon Our

David Cannon

Congratulations, Good quarter. excellent morning.

Sharon Price John

Thanks, David.

Voin Todorovic

David you, Thank

David Cannon

questions. of So a couple

new? fiscal enhanced there’s NFTs, potentially would virtual to and/or crypto back along. that you alluded referring or guys, past I for So the getting could initiatives?" incorporates next that have you’ve I’m of what into if the half the components And out. something as I’m gifting do to pet a be that missing and for the that website of if "transformational in on call reality done category that year Is the have things year, see, there executing far, better First, anything done job any you all we we’ve

Sharon Price John

question. Thanks much, your Appreciate David. so

on as driving We initiatives have been our we’ve very focused strategy. on three highlighted

core advance and consumers yes, different acceleration believe even e-com the The because the we’re for as engage often with of is that, as who since the getting to brand ago. And transformation. retail we new credit part of first reinventing on are that’s a level we experience in a XX and interconnectivity really always we’re looking ways experienced digital ways initiative almost of and years and engagement for

that announce in I Builder – Bear as was to fact, soft actually launch can ICR deck year are a of expected this free, on matter XD, our believe, an fiscal with we year. feel in online the which you the So launch we ICR mind, right go of in earlier did this now. And

really to soft we a with make We’re launching advanced – it the that any is sure of up technology pick lot of great partners.

working that through make and it seamless we’re and So to sure fun. it exciting is

online, to laptop/desktop on If the you go e-com if the can to the Builder to on click, right-hand have you’ll upper language, find up. sorry, have it phone, hamburger get for to you XD Bear pull your And on on a you’re corner.

it. to free feel experience So

evolve up have what or online, the from online, on Let think, for store you us ship in This store, buy other year, front have transformational. continuing and and do day. to buy last me to online, first same it pick the in know things of delivered XXXX was buy year the

that and efficiently more for addressable more allowing effectively. has are many opportunity a and to these So they’re broadened the a much, consumers. to a meet occasions the of the We all multigenerational we believe range want now consumer believe met broader of to and meet broader market part Build-A-Bear to we they that can need of different do mechanisms, we with being of us where much to be initiatives all where can approach able where be engage

David Cannon

Okay.

doing potentially only is chain as transformational, of potentially pets mention that that transformative year else national pets, is really the that Build-A-Bear, I like is in – currently you is thing right thing crypto soft XD for in now. new You’re third like the plus which is the new or for would transformational a I currently? retail. year? that’s being nothing else large or another launched anything none NFTs, would There’s pipeline next this a view terms but have don’t So launch third-party crypto

Sharon Price John

would as the within that new some something with for is that is call, always assessment owned with noted, that we We believe the efficient we the very us. brand and and that very the with continued transformational continued we’re agree of the model it with we an a a us. one opportunity our there at. with and for called movie is Build-A-Bear pushing that again, on looking highlighting just last be and From opportunity that’s deal good believe new we music. NFTs, has able acquisition property. noted And intellectual to third-party, looking have So a Honey to that, multi-year very that transformational that on working the outside you. an brand David, properties launch has multiple how are excited noted to is visibility believe multidimensional, execute partners remarks content But to clearly we Grammy And on entertainment companies into Sony Sony, are our we’re important Worldwide well I opportunity We we as be assessment award-winning relationship of all perspective, Girls our Pictures of artists, of with and the that other we and efforts.

David Cannon

have not for is effective making aversion that of you use toys Or Is pets? Do an to you that that is think your in? something you’re it interested time? something

Sharon Price John

about previous Thank David, speak Apologies please in in in We licensed detail response. asked launching yet. actually are line but conjunction a it I’m pet you we’re answering new that not question so ready relationship you. as with that to the glad not for well. a

David Cannon

to and that. on to Good chatting Okay. next luck the Glad look call. hear forward

Operator

ahead. Thank you. [Operator Instructions] Please Our next question is Holdings. coming of from Greg Rambleside go Cohen

Greg Cohen

great quarter. congrats on Sharon, a Hi

Sharon Price John

appreciate I it. you. Thank

Greg Cohen

is I the the on it roughly enterprise this our strong value conservative one million. season math, just be By for guidance might one my very like quarter have fourth actually company. holiday question And allocation. seems being capital $XXX given

be we debt, valuation seems is have a and very times as cash significant and CapEx the given X balance, EBITDA, no so And could as light. low it like our

to earnings have in form shareholders So buybacks per is, capital or that accretive share? do of any plans question to to anything the be my return we would

Sharon Price John

likes. Yes, in can I’ll we’re clearly, we agree. anything he balance we Voin cash start were And if add last twice year. and as Yes,

shareholder in any or think to out time note we predict pointed all payment. return impact. a look Directors inventory included point. remarks, have also and even the have We cash absolutely, – and think – in recommendations responsible things with types on in COVID with things that and we of we few our of the payment learned I in the moving are all the I fiscally changes, in ramp-up most different that’s down know, of of work And if some cash that that for implemented it’s moment the past types we is had understand we’re some things can as options isolating half many in of what moment this that at to to to – the issues, our well with until we your that agree some that in delayed always, some going as But value. where I out. ongoing And unfold, acute the the changes programs a you rent balance as holds. Board our how very very we I of have those current our pointed of guidance of new believe pressures of you understand that these to all have our difficult the do programs still allocation we as what’s on take future, COVID we do some the back prepared to assess bring as that our And buyback exactly think, of and want I though, stay capital additional part, another We, in of proper to of future

stay want anything front. to there’s So really that I know, we don’t prudent Voin, on add? want And if to you

Voin Todorovic

I covered you think well. really

Greg Cohen

per earnings Okay, It’s great. a be And multiple that the That’s second follow-up stock the would and kind the obviously, obviously, applied share, right? would of price that. guess question components, per that of two be, is EBITDA to to share, helpful. as I

Voin Todorovic

Right.

Greg Cohen

being one good significant frankly, you improvement a the at the margin And mean And question And significant the I one I layer progressive these callers actually the any being cheapest trade one, you that I when you’re is? seeing, announcements is fact such I such low we as think one the public stocks monetization similar that price? of the made other multiple, more such NFTs, Playboy think think in we’re which why guess brands, seeing I that tools profitability, growth another. least on the forward-thinking we’re of all why market. stock and in it’s some the digital cheap factors, Funko of at the think consumer is, do trading my entire to shocking we reasons obviously, haven’t a this at significant in that alluded

how can’t levels? view otherwise, why Curious personal value cheap such or sort – my you what market think multiples. trading I because at about the just company that’s significant the Thanks. So opportunity these the figure is out at we’re misunderstanding of why capture undervaluing

Sharon Price John

Voin. to open this with and up Again, Yes. it start I’ll

And of somewhat goal And the that a past think companies we profitable that for lot deliverables. of consistency sustained I with market been challenged. years First, in growth. driving think had few a many have I issues years. some We’ve for have the had over looks

that of of go the something entire we’ve this the that, retail to to significant has starting whether see been point. been revenue contraction our growth, we now through know, to you’re particular that’s you get you’re e-commerce to that and this and that starting infrastructure looking to evolution, see investors retailers. which with really know also rebuild for. to have had And some dramatic had consistency to I As mall-based our And traffic transition evolution,

potential to you, also So we addressable the that get as shared and expanding being market, able I that we’re with to addressable as excited market have lifetime really we’re longer believe about a value.

there’s and multiple So fronts levers.

second to that a approach That The more evolution to intellectual companies. of versus a believe toward a the on we is company of content retailer" property higher be into of piece on branded of "just is property the the be at if a multiple how front, different should valued. endeavor type lot and that our multiple a us drive able entertainment range business life where there’s look intellectual you

some would though believe need think some we to some proof that able Even consistency, we perhaps provide the we’re we on hypothesis. likely of both to little to points we’ve and – show this just points be So proof shown have in provide Voin? that the community top a the that fronts. hypothesis, from of on confidence that I provide data believe more could consistency investment I

Voin Todorovic

Yes.

business. diversification So about web was as think Sharon as our a years, we several from their total web joined digits And lot like have perspective like a and of company, especially great low question. done in when And revenue. the last single the I business percentage again, over the and we transformation

demand significant our Now portion. is web a

about we about and revenue valuation, think the when diversification that different that’s different one third-party significant revenue multiples, change. getting even model, of area been for So focus are us. channels, big definitely, When of you asset-light talking

been – valuations. managing from As biggest multiples. stores, presented, our and the were of different create as you a ways information and revenue like of definitely are are, over retail our at be as to mentioned, But forward earlier opportunities are really looking years, those few we some still appropriate again, expenses. of these probably that partially streams chunk those Sharon the the some we reason is for we momentum been some talked CapEx all We’ve about channels. to do pointed more we and of But these different expand But entertainment, sharing that looking coming our the have and exploring different for managed. are in And that’s working out, we time. revenue that’s has last

the realized different investment expect has line this and and be to years channels seeing strong, growth the come. months been that in to our community by are and from bottom some we to flow-through definitely revenue of We

Greg Cohen

you. thank Okay,

Operator

coming you. do David your one Cannon have follow-up question question. Wealth proceed with Thank Please We of Cannon follow-up Management.

David Cannon

Yes. Yes.

talking bit the this – talk are new a your you? add is a starting is other it delivery, want it’s e-com that store, there And you like that deliver Shipt, up giving or brick-and-mortar announcement this, to is you and specifically a same-day and advantage to to an market online, to the some essentially in to you that? being retailers way are over partners? thing to, omnichannel an pick that are a in-store, will, the seems is alluded way, company visiting I pure people about, using company it, whether more buy Can little DC for figure you about and play e-commerce the strategy store they retailers going color there? you product or Some to and an an being the as out I day. actually saw able same have people And warehouse, if advantage market how brick-and-mortar with wanted

Voin Todorovic

have when the time opportunity, last do guests one in So they focal engage warehouse. around holidays, David, a as we whichever correct windows yes, especially ship of expanding the areas XXXX, store, late earlier, started option online, one and where those deal past a of are signed that and Ohio our we This with about to big extension from was capabilities from that compressed times with an our talked year, that in we definitely, believe would think of brand. up buy initiative we in-store, you like the our point and providing Sharon pick is absolutely shipping I delivery December of it’s

orders. are of set as optionality get provides holidays, that this provide So you guests closer definitely, product and placing consideration as with to us to these tremendous the be part

know those mile of like we So this definitely We differentiating those spending is opportunity lot us, things providing our things still areas it’s experience are and that believe of definitely last quickly guests, the new, the to possible kind big is it’s program you big that’s but it time it’s industry a one relatively as one that as critical. of and buzz a energy. that in of and

Sharon Price John

Right.

tail I nicely, about – does as think our discussion David, gifting into well. this the

gifting days our side in largest few opportunity for moments to very that last two gift consumers. a can be were for loved the the whether the that’s So holidays, And Valentine’s, a to Christmas same-day of – important providing critical us sales those or this are one. final delivery

David Cannon

service this you And until do initiative? that putting that see if point? yourselves Have you specifically marketed up some dollars behind not,

Sharon Price John

so, expect to we holiday, opportunity marketed would we there’s the it and just otherwise meet continue been because to especially big do days to would would believe lost which We last sales. have for – – be have at which a there of

David Cannon

Okay.

to perceived perceive e-com thoughts as well BOPIS, your pure-play e-com marketplace you delivery curious and same-day as it possibly agree, do was the that retailer in rethink retailers curiosity, of in out an that that. have past, arbitrage of Just Just brick-and-mortar disrupting being potentially beginning companies? perhaps are as brick-and-mortar as a the on people

Sharon Price John

they circle virtuous you are and to create us great relationship I’ll but a It’s to have always time. for over and we’re that creating anchor a the want have Build-A-Bear. that speak don’t a I asset, with experience locations where memorable well-run, affinity really believed tell an that’s else consumer, proven brand that not believes, profitable certainly what everyone for we retail an

it’s warehouses, points. you delivery some-odd coming Our today, tremendous evolved those yes, locations we’ve from many as numbers best-known as are and now as some pool into asset a kids say, they companies that affinity and And XXX us. the that of small for And big experience have. that is

Operator

back I’d this floor gentlemen, turn time, Thank closing to over you. and like Ladies comments. the for management at to

Sharon Price John

third today. appreciate joining forward everyone we it, for us look call. Thanks seeing and everyone to quarter our We on

Operator

your Ladies interest and for today’s and thank event. gentlemen, in you participation Build-A-Bear

and day. You or at rest webcast may time, your off lines disconnect the the your log of this enjoy

Build-A-Bear Workshop (BBW) 26 Aug 212021 Q2 Earnings call transcript