Build-A-Bear Workshop Inc. Files 2024 10-K Report

TL;DR

<b>Build-A-Bear Workshop Inc. has filed its annual 10-K report detailing its financial performance and operational aspects for the fiscal year 2023.</b>

AI Summary

BUILD-A-BEAR WORKSHOP INC (BBW) filed a Annual Report (10-K) with the SEC on April 18, 2024. Build-A-Bear Workshop Inc. filed its 10-K report for the fiscal year ending February 3, 2024. The filing covers the fiscal year 2023, with data points from 2019-2023. Key financial data includes total assets, total debt, and revenue figures. The company operates in the retail-hobby, toy & game shops sector. The report details various financial components such as allowance for doubtful accounts and deferred financing costs.

Why It Matters

For investors and stakeholders tracking BUILD-A-BEAR WORKSHOP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Build-A-Bear's financial health, operational segments, and risk factors, crucial for investors to assess the company's stability and future prospects. The detailed financial statements and disclosures within the report offer insights into revenue streams, debt levels, and asset management, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — BUILD-A-BEAR WORKSHOP INC shows moderate risk based on this filing. The company's financial performance and future outlook are subject to market conditions and consumer spending, as indicated by the inclusion of variable lease costs intended to hedge against sales volatility.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Build-A-Bear's performance and potential challenges.

Revenue Breakdown

Key Numbers

• 15,000,000 — Total Debt (Fiscal Year 2023)
• 14,172,362 — Total Assets (Fiscal Year 2023)
• 14,802,338 — Total Debt (Fiscal Year 2023)
• 22.5 — Operating Margin % (Fiscal Year 2023)
• 21 — Operating Margin % (Fiscal Year 2022)
• 0.1 — Gross Margin % (Fiscal Year 2023)

Key Players & Entities

• BUILD-A-BEAR WORKSHOP INC (company) — Filer name
• 0001113809 (company) — Central Index Key
• 5945 (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• ST LOUIS (company) — Business Address City
• MO (company) — Business Address State
• 20240203 (date) — Fiscal Year End
• 20240418 (date) — Filing Date

FAQ

Risk Factors

• Variable Lease Costs [medium — financial]: Variable lease costs consist of leases with variable rent structures, intended to increase flexibility in an environment with expected high sales volatility and provide a natural hedge against potential sales declines.
• Allowance for Doubtful Accounts [low — financial]: Allowance for doubtful accounts represent uncollectible accounts written off, recoveries and the impact of currency translation.
• Prepaid Merchandise [low — operational]: Prepaid merchandise consists of prepaid purchase orders of inventory that are not in transit as of fiscal year end.

Key Financial Figures

• $0.01 — ch Registered Common Stock, par value $0.01 per share BBW New York Stock Exchange
• $24.44 — liates (based upon the closing price of $24.44 for the shares on the New York Stock Ex
• $42 m — r 27, 2021, and April 6, 2023, totaling $42 million, through share repurchases from a
• $25 million — llion, through share repurchases from a $25 million stock repurchase program that was adopt
• $50 million — adopted in November 2021, and through a $50 million stock repurchase program announced in A
• $0.20 — g an initial quarterly cash dividend of $0.20 per share. 6 Table of Contents Mer
• $63.5 m — uary 3, 2024, our inventory balance was $63.5 million, a decrease of $7.0 million compa
• $7.0 million — alance was $63.5 million, a decrease of $7.0 million compared to January 28, 2023. We are co

Filing Documents

• bbw20240123_10k.htm (10-K) — 1538KB
• ex_651947.htm (EX-21.1) — 10KB
• ex_618516.htm (EX-23.1) — 7KB
• ex_618517.htm (EX-31.1) — 13KB
• ex_618518.htm (EX-31.2) — 13KB
• ex_618519.htm (EX-32.1) — 6KB
• ex_618520.htm (EX-32.2) — 6KB
• ex_653378.htm (EX-97.1) — 27KB
• 0001437749-24-012440.txt (&nbsp;) — 7521KB
• bbw-20240203.xsd (EX-101.SCH) — 62KB
• bbw-20240203_cal.xml (EX-101.CAL) — 59KB
• bbw-20240203_def.xml (EX-101.DEF) — 423KB
• bbw-20240203_lab.xml (EX-101.LAB) — 389KB
• bbw-20240203_pre.xml (EX-101.PRE) — 467KB
• bbw20240123_10k_htm.xml (XML) — 1169KB

Forward-Looking Statements

Forward-Looking Statements 4 Part I Item 1.

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 23 Item 4. Mine Safety Disclosure 23 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23 Item 6. [Reserved] 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 35 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 35 Item 9A.

Controls and Procedures

Controls and Procedures 36 Item 9B. Other Information 38 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 38 Part III Item 10. Directors, Executive Officers and Corporate Governance 38 Item 11.

Executive Compensation

Executive Compensation 39 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 39 Item 13. Certain Relationships and Related Transactions and Director Independence 39 Item 14. Principal Accountant Fees and Services 39 Part IV Item 15. Exhibits and Financial Statement Schedules 40 Item 16. Form 10-K Summary 69 Exhibit Index 66

Signatures

Signatures 70 3 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains certain statements that are, or may be considered to be, "forward-looking statements" for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as "may," "might," "should," "expect," "plan," "anticipate," "believe," "estimate," "intend," "predict," "future," "potential," "will," "could," "target," "project," "contemplate," or "continue," the negative or any derivative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include, among other things, projections or statements regarding: our future financial performance and the sufficiency of our cash generated from operations and borrowings under our credit facilities; our anticipated operating strategies and future strategic expansion initiatives; our future capital expenditures; our anticipated rate of store relocations, openings and closures; and our anticipated costs related to store relocations, openings and closures. These statements are only predictions based on our current expectations and projections about future events. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements, including those factors discussed under the caption entitled "Risk Factors" as well as other places in this Annual Report on Form 10-K. We operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all the risk factors, nor ca

BUSINESS

BUSINESS Overview Build-A-Bear Workshop, Inc., a Delaware corporation, was formed in 1997 as a mall-based, experiential specialty retailer where children and their families could create their own stuffed animals by participating in the stuffing, fluffing, dressing, accessorizing, and naming of their own teddy bears and other plush toys. We believe the hands-on and interactive nature of our experience locations, our personal service model and engaging digital shopping experiences result in guests forming an emotional connection with our brand. Over the last 26 years, with more than 240 million furry friends sold to guests around the world, Build-A-Bear has become a brand with high consumer awareness, positive affinity, and strong retail influence. We are leveraging this brand strength to grow our brick-and-mortar retail footprint beyond traditional malls through a range of store sizes, formats and locations including tourist destinations. We are also growing through our websites, which focus on gift-giving, collectible merchandise, and licensed products. In addition to growing our corporately-managed store and e-commerce footprint, we are also growing through third-party operated and franchised stores, particularly for our international expansion. Our ongoing digital transformation, which touches our e-commerce business, consumer loyalty program and digital marketing and content, has led to omni-channel growth over the past several years. Build-A-Bear's pop-culture and multi-generational appeal have played a key role in growing our total addressable market beyond children by adding teens and adults with entertainment and sports licensing, collectible and gifting offerings, as well as by introducing new products and adding categories beyond plush. As of February 3, 2024, the Company had 525 global locations through a combination of its corporately-managed, partner-operated, and international-franchise models. This reflects 359 corporately-managed locations, incl

RISK FACTORS

RISK FACTORS We operate in a changing environment that involves numerous known and unknown risks and uncertainties that could materially affect our operations. The risks, uncertainties and other factors set forth below may cause our actual results, performances or achievements to be materially different from those expressed or implied by our forward-looking statements. If any of these risks or events occur, our business, financial condition or results of operations may be adversely affected. Additional risks not currently known to us or that we presently deem immaterial may also impair our business operations. MACROECONOMIC AND INDUSTRY RISKS Any uncertainty or decline in general global economic conditions, caused by inflation, rising interest rates, geo-political conflicts, or other external factors, could lead to disproportionately reduced discretionary consumer spending and a corresponding reduction in demand for our products and have an adve

View Full Filing

View this 10-K filing on SEC EDGAR