Build-A-Bear Workshop Inc. (BBW) stock prices were up by 9.49% shortly after market trading commenced on August 26th, 2021. This brought the price per share up to USD$18.40 early on in the trading day.
BBW Stock Reports Record Q2 2021
August 26th, 2021 saw BBW stock report a continuation of the positive trend observed since the start of the fiscal 2021 year. The company delivered another record-breaking quarter, with all time high profits and a strong improvement in total revenues from both the second quarters of 2020 and 2019. These results reflect the momentum generated from the successful execution of the company’s strategy. The success can also be attributed to rapidly adapting to an evolving environment, as well as the ability to accelerate key initiatives to drive sustained profitable growth. The company has also benefitted from pandemic-related factors such as pent-up demand and the availability of stimulus funds.
Adapting to the Global Pandemic
The company is keen to leverage the strength of its brand image to a consumer base that spans an array of demographics across multiple channels. The resounding success of the first half of the fiscal year has carried into the third quarter. BBW stock is confident in its ability to maneuver a market with higher costs and a tight supply chain, as well as to monitor and adapt to the constantly changing global pandemic. The company is optimistic about its full-year performance as it increases its annual guidance again.
BBW Stock’s Gross Profit Reports
BBW stock reported a gross profit margin for the second quarter of fiscal 2021 at 53.2%. This is comparable to the 18.7% reported in the prior-year quarter and the 44.1% reported in the second quarter of fiscal 2019. Gross profit margin was a massive 3,450 basis points higher in Q2 2021 than in Q2 2020, while being 910 basis points higher than Q2 2019. The success of the 2021 quarter is largely attributed to the increased leverage on fixed occupancy expense and expansion in merchandise margin. BBW stock reported ending the second quarter of fiscal 2021 with cash and cash equivalents in the amount of USD$51.1 million.
Future Outlook for BBW Stock
The company reported a stellar quarter, with the establishment of new records and the generation of momentum that is carrying it through to a promising Q3 2021. BBW stock is keen to leverage the resources at its disposal to push for a continued trajectory of success. Investors are hopeful that the company will be able to facilitate significant and sustained increases in shareholder value.
