Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $41 price target for Build-A-Bear Workshop after the company reported lower than consensus 1Q results, driven by weaker-than-expected online revenue, but reiterated both revenue and pre-tax income guidance for FY24.</li><li>Given the multiple shifts in FY24, the potential for the company to drive material franchised and commercial revenue and what we view as a highly appealing experiential shopping experience, we remain positive on the potential for Build-A-Bear to achieve their guidance for FY24.</li><li>Further, with the company remaining committed to returning capital to shareholders via share repurchases and dividends and maximizing a cash rich, debt-free balance sheet, we view today's weakness in BBW as an opportunity to invest in one of the strongest (and highest margin) specialty retailers.</li></ul>

We are reiterating our Buy rating and $41 price target for Build-A-Bear Workshop after the company reported lower than consensus 1Q results, driven by weaker-than-expected online revenue, but reiterated both revenue and pre-tax income guidance for FY24.Given the multiple shifts in FY24, the potential for the company to drive material franchised and commercial revenue and what we view as a highly appealing experiential shopping experience, we remain positive on the potential for Build-A-Bear to achieve their guidance for FY24.Further, with the company remaining committed to returning capital to shareholders via share repurchases and dividends and maximizing a cash rich, debt-free balance sheet, we view today's weakness in BBW as an opportunity to invest in one of the strongest (and highest margin) specialty retailers.

BBW: 1Q Review: Gearing Up for FY24; Reiterate Buy Rating, $41 PT

Build A Bear Workshop

BBW: 1Q Review: Gearing Up for FY24; Reiterate Buy Rating, $41 PT