Build-A-Bear Workshop (BBW) 14 Mar 242024 Q4 Earnings call transcript

Greetings. Welcome to the Build-a-Bear Workshop Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.I will now turn the conference over to your host, Gary Schnierow, Vice President of Investor Relations and Corporate Finance.

You may begin.

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

call, with detail update For our will the key Sharon today's begin will Voin our and have on review year guidance. priorities. we After, fourth in a full performance provide progress and more the financials made our and quarter of discussion

are today call on release.And IR information take our remind We in the and replay including non-GAAP statements with our substitute would will reconciliation GAAP. inherently of to after management with the report the to currently to eliminate that be XX-K. those the call, on call the measures should set media impact unless results differ on will A presented, are the number the can considered company's being forward-looking call undertake should to performance. in both of certain measures no questions. turn discuss useful to We a believes non-GAAP everyone Risk call which those this isolation from then available I in be over in The factors, website. could a to obligation Internet. be anticipated Sharon. the Actual portion company's accordance and not may results of open live results we recorded your company's the due conference earnings your Factors the uncertainties. in note by presentation Please financial law.Also later section adjust which revise non-GAAP GAAP find a and on financial the our annual statements who for risks questions.Members earnings like forward-looking webcast release materially in regarding Relations this is will and any call via you subject measures call us Form site.I corporate required now, of during financial today non-GAAP evaluating available these to our The contact will is Investor may forth be or items, the broadcast of If measures, prepared of

morning, Thank Quarter for XXXX and us Build-A-Bear's Call. Good for Fourth Gary. Earnings and thanks joining Fiscal you,

this We in Build-A-Bear a the against to third record results report XXXX.Now evolution pleased strategy, are to in to with our record year as and year the record-breaking we Build-A-Bear. model as morning's leverage brand. to again release, represents business XXXX XXXX. press to recap our focused Fiscal keeping is of fourth the guidance of continue reflected profitably the row in deliver on of fiscal power In trend, this in execute which expect results for consecutive a we our

and nearly increased delivered of revenues quarter, fourth pretax $XXX over the for million, than more income Specifically, we to X% $XX million.

$XX to will and million, January impact record insights numbers income that some previously XXXX economic his full ecommerce the planned within to severe provided increased company. more X% the pretax the Revenues provide increased remarks.Turning fiscal a $XXX X% record some page to results. to in also nearly on that over a for year we million, weather. were to of guidance While range, overall like these disruption originally than Voin challenges accentuated the were results due combination and quarter softer fourth by a would note

a is highlight the fiscal million generated fiscal the As our model, evolution to over growth and Build-A-Bear's years meaningful noted, as few of I will execution the of our profitable well strategy expansion attribute as and business these prepandemic ongoing from past comparison, have successful results in which last in the in moment. XXXX, we a revenue $XXX understand total million we the the first, But progress to XX% year. as up better $XXX XXXX's made XXXX

growth.Some one-to-one the our critical of support a deliver an business initiatives the incremental of income, to business Build-A-Bear's systems Additionally, delivered segments.As X to past post digital multigenerational grounded local the own reminder, Guests growth This comprehensive made and summary, this loyalty strategy long-term process. with After content, our acceleration $XX continuation profitable initiatives visiting celebration of locations of it or store, exclusive with purchase, asset, have the vacation.Given from that leverage are: gift types company's of a the all our more two, X a is brand. creates now of of years additional in Build-a-Bear sending most significantly this three, a conclude our a our are pandemic. XX% an collecting back improvement most in the of Build-A-Bear communicate on workshops, holidays valuable special e-commerce generated be Build-A-Bear brand include:First, customers, is the Workshop step building for transformation, level to and our enables includes our to of fleet and upgrades cultivate progress coming a of difference locations, common store these pretax customer's whether ranges store creation; top-tier each which initiatives go many advance the to this is unique recent to and opportunity friend. the of the we've a party XX% up part further Build-A-Bear building their repeat first We showing across workshops strategic in than focused these this the marketplace. the us or and COVID a The to to Build-a-Bear in Plus for furry at incremental we their bear has we directly create them million market a experience. unique in power million expansion global a increase drive point engagement with that of during expansion profitable from research shareable website, furry to friend, creating and experience drive club $XXX on of revenue economics visits family what one is model; In the our more data one, next meaningfully come guests store us unique first through integration and over of moments guest to why birthdays, often store valuable our workshops memorable perhaps in guests in independent investment their to plans the occasions. and content evolution of their watching the of clear profitability. to improved visit driven tourist revenue experience financial in

And Today, XXXX like aspect expansion, than partners the on for every our transformation XXX comprehensive global stores a the recall, and least of global customer net XX locations XXXX to value we designed in and marketing we retail to growth our past that locations create to conference this ultimate quarter integrate of basis, the in X models, profitability. efficiency, touches and adding summary, Today, location store, growth and net has previously lifetime X are goal initiative personalization digital stated have digital a franchise a for earnings or of bring between X years. gifting new net the X unit guests, addressable accelerate XXXX Build-a-Bear's in in additional programs. we to second ecosystem call, XX the and been by nearly doubling our existing expands this the X cohesive partner-operated The to their new retail XXXX.In XX years, X that post more X-year an opened opportunities growth expectation. business year. would and unit that locations end just sales international base of over XX and online we COVID new drive stores past at might otherwise, fourth year.Our new guiding elevate on overall stores customer and which expected is are pleased experience net unit nearly to next also stores was corporately-managed strategic to is You incremental started XX that to Build-a-Bear ongoing, experience new communications business we and stated add between share store

digital of oversight all first loyalty and gifting the a created CRM, new aspirations the business. brand abilities, touches digital to organization unleash management the transformation the creative and in Store XXXX the to from plus Ship the is of accelerate Build-a-Bear's strategy. ecommerce a Online was The of This in our Buy to drive upgrade ranging replatform the much ecommerce alone move step said, both we after position digital helped is designed including expand unique Digital a the XXXX, of services, in-store, to meaningfully.Gifting power evolution That have is multiyear opportunity for website more guest a single the business, past, of One a to and mind, points much to driving of from the business. we tripling category. have new implementation warehouse and a company's Therefore, integrated believe the and With next recently customer we greater inclusive marketing. into have to to in approach has since the to we omnichannel of softness. Officer from as a more Customer becoming of multibillion-dollar that with a more and total effort sales Chief integrated as system steps ecommerce goal to role the noted Build-a-Bear

our Build-a-Bear.Our our kind increased experience and We elevate however strategic us with to structure connect growth. appropriately third guests support of providing initiative messaging, profitable this expect and first to is to choose engage wherever, the for personalized investment whenever an its while

it the well Merry of multiyear Mission animals. as that of videos, Merry have special as our the Merry now comprehensive we're and have what primarily of over film partner-operated quarter workshops world, look initiatives conjunction the the storyline holiday stories, furry the our moments, But case, I power around up special made through the marketing and movie but released have And this brand. comprehensive about enjoyed effort transformation top-selling quarter game, preference.Over the numbers opportunity. memories to brand? Merry such holiday Build-a-Bear mind, part as app, be evergreen. tradition.It Build-a-Bear of Build-a-Bear product of of we as entire the have when our Santa's expected, longer than workshops awareness the the mentioned, marketing content allowed expect and marketing multiple into Merry remained quarter-century, efforts Build-a-Bear of marketing just not happen this The the of word, entertainment Build-a-Bear, XX understand cash power entertainment-related Tycoon efforts, a plush we store Mission the the into these [ based and vehicle, do and at to communications past we With stories this this life temporary in as years holiday entertainment us the theatrical made of store XXX engagement, a past corporate year-over-year. their ] while place, the and to utilizing we more season North was and with the effort that to awareness, the to multifaceted Glisten the to With in that Build-a-Bear's consistent sales as the fuzzy Merry friends untold smiles, importantly above expect margins in an flow marketing asset-light, overall trust, annual annual no has touchpoint year company's These laughter make fourth operating improved campaign to facing fourth without flows. the hugs drive the bring term Well, In for company's cash that in film, of mean guests we is Build-a-Bear's affinity just consecutive example brand Build-a-Bear have latest animated Mission holiday than more expansion continued third our important in beloved. model, meaningfully we and XX% shift during strategy.We in customer section say as piece first-ever investments a Glisten a gaming pure we enjoy, XX% compelling Merry As Mission XX% music content Roblox another into translate Mission is a collection. Mission, doubt excited on the to that and characters are more none that could model been affinity aided almost in become of with and I the ultimately, sales. we America lighter and to Mission characters although, drove memories million

brands these of meaning brand influential brand strong notes list. what on this BAV the customers, attributes platform, deep and WPP's for XX emotional Build-a-Bear retailers recently, for recognized North just fact, that In BAV, analytics is their many across have a list most influence. America gives of

following a life, the little Apple brand opportunity as heart I power, are alongside We brands by that pleased our iconic recognized to fourth more such adding with that bit XXXX. we Quarter-to-date, March will continued change quarter, Build-a-Bear and were sales with of of the the to to softer Disney, outlook is positive some Nike.With little leverage that turn challenges trends. in a in had of experienced entered reflective a we February

two, of: of consumer of advance growth are support business; free combined toy new to one, expectation guidance we we the and XX phase industry downward as returning concerns least stores, to spending three, remain new support shareholders. Although while of execute some cash the confident the stores store and reported reports actions to ecommerce flow, in expectations growth allowed also providing we business has recent on increase this at company's investment globally; cash for the to investment our further pillars the unit with balancing with to asset-light and net franchise of partner including model X the us to expectation continued digital shift expansion more growth.Build-a-Bear's with with key transformation, with growth XXXX, sustainable

a remain Board's we of $X.XX we year. Over remaining to initiating in well share, in dividend stock results as regular years, and the many per and our accomplishments while XXXX, performance, returned shareholders past with dividends than to back continued we X Build-a-Bear's free. Build-a-Bear's special $XX X Reflecting quarterly stock. financial pleased buy million Management's repurchases continuing now Overall, record-breaking the debt of the while through this have are more as confidence

Stuff nearly of business a of the every exciting also one comprehensive across message XXXX will of our and new multiple to appeal the campaign. brand rollout the is our touchpoints and collective of for We further of campaign the designed across to conversation. a multidimensional Again, thoroughly consumer most called beloved connecting watch for are the efforts be opportunities simultaneously while universal is to all in love. designed launched middle excited Build-a-Bear, about This generations to beyond.Finally, brand right the is aspect the the you put campaign expand

of would our this of that appreciative after of to all meaning only Build-a-Bear not Stuff, over stuff associates, the of sincerely little that the is love.In turn enables big more can indeed work relates the to loved, service idea to we now a the toward partners the Build-a-Bear I'm continue that and and a as woven decade guests Build-a-Bear's heart things the is Beyond and the both company, but I obvious word double Voin. closing, mission to life.And into to to as over adding brand I like truly to say one often about memories we call

good fourth morning, again and It's our XXXX. share quarter with results fiscal to today year for and Sharon, you everyone. of speak our you, Thank full good to

financials we year, margin I last I are pleased on we our as pretax grew delivered versus record profit year year. of and income all past third touch recap want expanded consecutive from to a few Before results our the we highlights.First, across segments, increased gross that

$XXX.X up our strategic X year. to fourth sustain of more record another the strong long year. retail past quarter of plans.Now that and term repurchased million the announced expectations sales value. have generation this extra top were in over of to of On dividends moving financial ability X with to represents our demand. In our $X.XX To Net a solid flow shares starting initiation revenues year-over-year, our company's stretch X.X% capital we stock, Board stores result Store of review positive prior in X a our the of business results, to were more compared per week X.X% performance million, days growth extra of on Total based shareholders. quarterly year-over-year. the detailed the reflects decline our to of approximately X a special increased and the shareholders Also, reflecting has addition, approved confidence in sales enterprise outlook, the bad than when $XX this put over January for years, paid particularly we by impacted store weather week today over returning XXX XXXX current earlier dividend, common this, X.X% contribution return ecommerce from share XX% of we million as X-week a and due an perspective, with in closures. experienced to cash showing profitable

Even of decline Our franchise rate XX% EPS benefit lower tax removed increased results. full our decreased XX.X% for X.X% to prior delivered international allowance.Now from $XX.X revenue, the sales to total last rose was a the gross an the profit of traffic benefiting revenues, XXX increased as was points to release and year. over fourth XXX of of margin the as up, last inflation, was though flat tax few to Gross to year. was total wages addition wholesale The to primarily adjusted income, due and increase we costs. talent were increase transactions with of expenses, pretax SG&A quarter.Commercial operators driven to compared valuation other a represents the million but year, basis, highlight basis million, XX.X%. of expenses of marketing our an a per higher of dollars, XX.X% revenues which EPS support On SG&A partner growth in saw point XX% dollars an higher reflective combined in versus $XX.X margin compared to expansion investments we in freight XXXX a future XX.X%, or our and moving by leverage year distribution revenue, from improvement merchandise SG&A of we the growth. basis in nearly cost of quarter. in XX.X%

For the and points revenues fourth were week $XXX.X fiscal increased the close which included sales XX X.X% Net year-over-year the million, week. quarter. total were up extra in XXXX, excluding extra to basis year-over-year, X.X% retail up

the retail again reported traffic. outpaced store year, national our For traffic

was and Pretax growth was low-single-digits.Ecommerce year for the combined more $XX.X the revenue X.X% margin Our of transaction profit and year while the revenues. were to XX.X%. of per in demand to dollars down positive down rose for million X.X% commercial transactions income grew our a international Higher increase XX.X% and basis total led pretax SG&A expansion offset to for the year. than dollars gross XX points

the week, driven pretax will last We in lower basis. was the share Excluding the domestically. a is due with to of from and of to release guidance respect through to rate during million net the per in X.X%.With declining fiscal was equivalents a at the the by remain On million Earnings XXrd share X%. the or balance least million, of coming after highlight XXrd total a payment $X.XX mid-single-digit inventory.Turning internationally the benefit returning both to few the the decrease share, comfortable and details year. share increase, $XX.X grew key expect locations, XX but press sheet, $X to the to experience compared expansion, increase are repurchases I basis, was on grow through excluding full we currently the majority was per of included composition in week. XXXX, new special diluted $X.XX, outlook, year count XX.X% year-end year-end income $XX.X X.X% a our by EPS valuation million, compared impact our $XX.X of adjusted revenue our level partially the We at a of at growth to an had and This This XXXX. increase tax of year. approximately of an with cash the release, aided shareholders addition end allowance. million dividend the metrics cash a an and $X.X partner-operated of end, of Inventory

favorable add locations, fourth back-half revenue as to as quarter Our as be will due weighted comparison. we well a growth more

unfavorable the shipments some year.We with strong partner-operated openings of addition, note comparison, expectation full first compared the timing expect opening particularly stores this In that locations create difficult and year still segment may the quarter a will a has of growth to store but last majority of revenue be differences that in to first Stuff partner-operated on this to new year, digital we the the the commercial expenses our transformation you we grow timing of in Pretax the of full love, comprehensive basis, optimize integration our strategies expect but year the range continue the income marketing have customer lifetime brand basis. new and year, value. mid-single-digit launch on we campaign, as our quarter evolution of to and in

and ongoing pressures conflict our caused and the costs as store team members Our which our would remarks turn reflects we expense.In increased inflationary Middle our to corporate us has and positioned for outlook also the XXXX.This results, by now closing, East all record-breaking our over depreciation to increased year freight the wage back prepared warehouse in for will and fourth like for to well operator in and I Operator? questions. call as contributing thank consecutive associates concludes record

Research. Beder Instructions] line Eric question from [Operator first the comes with Our of SCC

inventories, forward? of we slightly be last here. here? shipping other be should outstanding about in you rising what an How few should year. going forward we with job Could now You about pieces and going it thinking about A managing some talk thinking quickies inventories did guys costs

freight management trying out we Eric. several question, due we came relates challenges of the of COVID-related over COVID managed costs as last been one for Thanks through it challenges. areas as to to some well our as Definitely. increased to the of Inventory mitigate has the focused it years as

from the and the are some nature things up to of costs the on but time, impact COVID at us again. perspective, those behind lane, of same conflicts to back the are of the starting the shipping Some creep due

continue be stay to some need by freight will and location, year, we business will some inventory that that, expand expect the do as have our going grow more that, that probably headwinds same and to inventory those additional is it some That creating our partner-operated assuming to at the addition end is to costs to so we capital working store continue freight. there timing. impact and some relates to also manage for we level.In as of So

a on again, the are everybody operate for our our reminder As to on call, basis. shipments as partner locations wholesale a

So bit of the opening and may stores, some fulfillment to different timing little there timing be in depending on these and than a replenishment stores that these is our retail locations.

Great. thinking in for process And commercial do kind international, you kind here? little the a we could bit thinking terms us have about the commercial? that what be about should XX expansion be thinking we of on and we or you And provide a returns of be into going of lower, I look thought should businesses? where potentially were margin the you how here margin about note, on for gross and is so should that partners in how these a how beyond but operating the through? areas these at terms the And know for of related that new franchising these

expectations, this actually on one I our mean, grow continue particular to ] global asset-light. in partners we capital for in new and and from as it's is yesterday, And journey. come footprint. the locations more continue Italy, -- that opportunities to we continue especially these the grow across different opened perspective with markets [ areas expanding We is store in That's of our of for and our to great globe.Also, second us a question. one we there as growth that those on part partner-operated international work the of like is more believe, This basis, so model company. we very we Rome, to this the to is future think

on making stores, sell are in the to basis. in them investments inventory, a wholesale we partners Our

about of think are full get the you we where top sales. that is getting, areas the As a one margins we line don't this

that's are leverage reflecting helping about that continue sales partners. we wholesale thinking there. guiding the we our these growth overall that our profitability dollars overhead you our and of business, are we when on making some that's to So investments to fixed and high-margin to, getting with are the the are we But that even

believe go for the going a that us. this very we we So as as past, opportunity accretive have future.And like be us to in into to the be for this said that is big we we expect

we many common as of think U.S.-based as that companies, stores have we For U.S., in many domestic could to it's have our outside market.

comes the Michael Our D.A. with next question of Baker Davidson. from line

A couple.

they places -- on locations, malls. by a Just are they where start color I of any following them wanted a partner These on -- vacation are, can XX presume like up of or that. I lot to are experiential-type like destinations just, outside

about Just what where of think locations kind sort be? can those we of wondering for will

to be construct we exactly a retail be some with be of At first, are strictly reason are or have I can where X to corporately-managed know can segments Thanks that's for they want XX because business locations. more going I'll clear, I being to on important economics the the associated for Voin It specified commercial model of speaking We're different confusing. and store. that franchise locations new in be haven't different call. are. this a I'm going to them. the all little start store, just is clear, all we're have which just of store, and our those And hand these model, to bit a business and it over And color. a

capital, of tourist a where going we be when a big to be on key are or that a the was trying had of the we there some And area XX% to corporately-operated, if ones with shared more calculated some we beach. of Mall require to that locations. stores, more corporately-managed for we look will were done over-indexed sales partner-operated about ago of XX% which stores So insights them were actively or miles We you mall, are do really America XX XX unprofitable, can where triangulate that some still analysis one didn't successful. of a be we or people stores in partner-operated.So away. we were And the at -- our location they that that years of also every guys cohort if and was more those an in or it that standing of it were almost metric was matter they

we interesting in international we have important believe think, that some but of the did the but how our research they for that easily types on will are they script reiterate locations. I have that have decide have think sometimes and about it's that hurdle an have, that be to concept whether we the comments of locations since Build-a-Bear dynamic, those that or made note of metrics And we focus we my opportunity and the clearly place those partner-operated, an -- sometimes areas to we additional grow we many on about Voin's are focused not.I some location opportunity that open degree, independent domestically. in we comment So to again, to even to operate -- about some there's

some partners are can these we malls. XXX and we these be And places more be be Continental to way. going of the a Europe, to opening that working locations. the possible really in that as open these to locations, XXX% as in be are brand, that present we overindexed sales journey are of going of stores we to in tourist are with these -- on that locations, to what we and asset-light so an And want we clearly we best us, we going at going grow model in of the of these in And past continue with to some expand couple as happy we -- tourist very of best look definitely that there brand continue do our these around Yes. these world, as the especially we things in of And to are in we are our drive some traffic have said destinations for majority profitable globally. our

Birthday People versus talk ideas. said of Parties It you makes I'm ticket types about positive or transaction you a less on time do products? come if downed. Two wondering in? what's an transaction? can -- why follow just type economic Bear Cave a spending Or of that's ticket they ticket always ups. sense. Yes. there's to per -- color Yes. bit sales with little those per curious, -- positive had Is any Clearly, that just issue? you think sort And then going One, as each

down On of sales break Cave specific website. we don't particularly the the on Bear our areas, comment,

are our adult shared birthday consumer X/X business. is you of that core we might strategy a products that's a noticed, that most the consumer. an inside lot with get around you one it's age So one devil of that And sales the actually right of it to birthdays, Bear a offer it's it's we we with there some base. core has as older associated business adult-to-adult as These Bear is into whether our some our gate press about Cave and And that's gifting. -- total on Birthday treat of of about importantly of -- have and we've buildabear.com, the purchases, party audience.On -- a to the fits appealing broader might often robust in And way business, bears, of of Wall the of multigenerational is that of Valentine's do stores, our about focused Day the outside Cave. our a business. Journal Street they're all were a cute on We often the cover very but consumer inside microsite a

we where the our for as pay use consumer. age acquisition that Treat bear Bear, our for And birthday. we in that love come Birthday is and the #X core created your and -- we tool in you your a month of Now, Birthday which can business,

in You program Birthday the have the be to loyalty program. to in participate Treat

Treat birthday next maybe the Build-a-Bear, in them party maybe And us communicate.Again, the communication would reengage as I so builds child wanting lifetime first-party this value. year. to they to ecosystem if the for It inclusive direct gives that to clearly their a encourage to and the on data with to really and or noted hopefully in there, at consumer drive participate creation that allows of opportunities our of Birthday next us that that we other come

that lifetime have still although we for and out acquisition So I a tool a it's think a acquisition have, opportunity great strong with us, job, value to that done we we've tool. great tremendous keep stretching

a in per I to year start dollars changes on mentioned our little full And question first, color basis. on in add more I'll traffic your that remarks bit as about a transaction, our prepared was up

And continue to quarter-after-quarter, outpace pleased continue initiatives stores. to on traffic national that drive our we to are year-after-year. very we to continue we execute So traffic to

things stores, some down, from impact As we are external couple are that's we when macroenvironment. per our there that some believe the we are dollar is transaction is of our coming customers -- and there said a are is impacted.Definitely, there to softness that

when lower that the internal of reports And rest probably guests first in But time, and component of better compared value one talked of particular same what transaction. in renew. the the guys new the about are like the our it's just overall those transaction of there they shifting. acquisition industry Bear our from QX And the into come ] time changes the program, our Sharon with the toy is you [ are the couple that Birthday getting the and are things in of as been how at than been impacted, things particular, and interact are business. some it's and the And program. industry. challenging the less has As It's our reading other a guests to we those about, increasing brand, those of #X average that performance are

decline they stores we overall are drive that per our to locations. So their impacting that in that our their transactions.But coming pleased income money people discretionary and that's in continue traffic, our spending are we and still are dollar also to

we so line excellent our and for And drive will growth. areas continue continue to on experiences to to work top create them

Securities. comes question Greg of the with line next Northland Gibas Our from

sales how QX? comp ff extra performed, back that own in you week out Curious store

QX, about had $XXX was year-over-year. -- week we we The total million in $X what said clearly, in of Well, million. revenue growth the that XXrd impact X.X% was

down overall. sales our So were

We also X.X%. our down about demand that was web said

even demand. overall was about the though though talk is smaller sales -- retail same-store impact we down, on So -- a the don't impact even we in were but than the sales, on web what the the

for just about you're our clarity, stores, say talking when And owned corporately-managed you stores.

of data. our data stores. based not stores We're corporately-managed that on that particular All is including franchise partner-operated in or

And the growth additional XXXX of curious kind outlook? out what sales if XX stores at comp least, implied we is of curious kind in the your store ex

remarks, continue additional may I So be for X add our to range of mid-single-digit coming weighted, extra mentioned to new be XX that going from as partners locations. open these lot net the expect as adjust we we expecting and we that A if them. growth are in grow, in Again, stores grow we week, back-half year-over-year. to to is

that recover well we So that in our portion in that's would to digital place, as base to that, growth, addition expect business expect as well. our as of business with we the in ecomm transformation improvement

a commentary least store of Fair you in I nice it could breakdown international of kind like from new think first And I versus you new for previously maybe versus XX previously curious specifically to expected. not it was is stores? partner-operated down, said Given XXXX follow-up, curious rough sales corporate if you're versus just guess breaking see as just I anticipation then would the the domestic what franchise. XX breakdown, maybe domestic? be -- but really And also in international Maybe acceleration and really on enough. know, opportunity was to talk about rough I those Okay. mix you the of an rough internationally, XX/XX? And your going on a at lot like

of opening. that these what locations expect of majority So we partner-operated -- that's have we shared, the to be

be and more those. It's these of big would Again, direct and are on as timing it's outside the number are of But we to color still continue specific also feel the portion and some perspective, a some our and providing are challenges guiding going like overall this there international depends not than to XX%, the locations, partner-operated that chain going and in of supply about of we impacts. that's as that there's this openings. to the to we works.From to how we flexibility expand in So we control where on is those. of we some Again, definitely opening be good open markets, expect open. in in going are

to international those that reasons also all some our more are because detail, to internationally. I So at second don't a have expand franchise but to again, of of just highlighted some and want business numbers opportunities, I those ago. break planning expect we we

of going beginning have we years, are we as will of in we those many in And they to we open some it's, to first as the more have So and providing so mentioned, behind stores excited are throughout to information we year, we share. about that context continue are are again, that. now journey be and in more opening, we X the Europe markets Continental COVID

-- for as beyond we're the we're guess, years in that us, And have add store. it It's with specific that these is there any that. with, even that that and as I corporately-managed, and -- is, would partners. without are planning locations, I is that we on to, even running out clearly or on providing well, long and thing we unilateral a a stores which XX so working Voin in it's detail one is. partner to a pipeline, a in end pretty not what partner-operated was decision store saying, format leases corporately-operated particularly kind some other sometimes up of But

opened we Italian opened when takes. just we're form store recall to release, portion last on the probably we yes, might And discussed in reaction the we last but be. Rome, down what market why earnings mentioned and and as that's we of Milan. the could in it's the you It's Voin the as as crystal So positive negotiation sometimes actually the because being not in the on excitement

the but just yesterday, of that quite opened So see we'll hopeful same impact. we're sort

Silver with next Our line Argus comes the of Research. from question Steve

the across across process on Merry the whether surprises any future as I'm that the now content or to going able you Mission on the to you lessons policy, be inform the leverage that Congratulations touchpoints were that curious new expect movie that there that helped positive underlying all I unexpected that in dividend business. learned had to must various business the appreciate any just confidence color projects? the in through the impact have decision.

would new because we we mentioned, with Well, would decision the we theatrical of and that of this already were made had that had had -- that initiative. first, years something with guests. multiple enjoyed that storyline an we characters with we Mission the we hope When a that there's learn, real a to and we do of these as sense I already things marketing success with feature, resonate would the and our -- Merry be was app, particularly already always and animated --

much it's it's we the looking Additionally, our was Chevy guest. creation everything brand, -- "Specialty because, a to be point Chase to a something would power spread alike.So do like communicate that that and a retailer, open creating I make impact think, it terms to content we as of Build-a-Bear talent a marketing tool, would we for Michaels, to from it of to mentioned eyes in the typically, center it do call of the of were film." and able at a for primary fun comprehensive a kids on a we level really reason I not we secure that the wide create it moms with in do, So a a Julia across what so this went normal and adventure into

was And -- so that for And Cinemark thought we've were we would a before. able and that early theatrical expect November. never of have October was release process. from part marketer just well, in didn't we a learned But exclusive -- an to with early create a theatrical -- on, we partnership interesting release, theatrical a that been what we not

pleased we to create, us. process reinvent that believe an have because created, we the trying and willing every were holidays we that people come to I that to interesting we to were for year, see is don't film.And we're evergreen next And concept So that could was our an actually marketing year. what the believe theaters and have out we for

raise marketing we on the marketing we just that kids, can expect about Merry hope think was communications, to longevity Mission holiday our films to be through And significantly, you as look the our a I If elevate And not have shared, content, the plan water we but we our look are up look we which improve. something media that through that I and how we would Merry targeted case the campaign year look programs, learn well level and would next program, through will that tradition year, as next each the do. of Christmas. of Mission as to everything

Our next Kanen the Management. line with of question David comes Kanen from Wealth

is and one Can an sales it the Or I give for that? in approximation to first expecting the you if wrong, expect into it, XXXX, it I'm if on grow. The guide What back correct same-store me you're decline please looks for mid-single-digit you year. me growth. to like is --

think I I a exercise. again go just ago, answered but just this minute question I'll through that

to that's from our as our as we ]. as [ store talked growth So compared an guidance, on ecomm well adjusted come base. year-over-year XX And growth our we expect about base from basis, in XX-week the mid-single-digit the

In as addition to from that, we base would expect to business growth well. see our

we and as expect but We grow to portion haven't well. number, business quantified growth the that that that of

it were down was And it so, resume Okay. more Do if overall ecommerce And and then on is to ecommerce, guidance to in know difficult. XXXX similar the expect comparisons growth? you of I mid-single-digit? the

of specifically all on we that transformation in the that seen initiatives. specified initiatives growing be digital haven't have at based but with some segment, a place, XXXX, than should that, challenges we the the we faster believe of for particular other again, some ecomm, have pace in We

Okay.

trends the in have you in reverse ecommerce? far are XXXX, So thus you seen to positive

Yes, have. we

lose is this but you've or and but new product, not, Was essentially And a that this you Any I was provide results. it And question. -- just meaningful there's to therefore, if quarter not it appreciated? then or there them, the that, can that is it great. infringed upon color lawsuit it's affect launched. Okay, minimis. product? not know a you I going is a know de significant even SKOOSHERZ, contributor claim to if I'm there final a sure meaningful it's

Well, law preexisting launched of currently your holder, clearly, it, be And we property based is today. to your it so which XX-year any Build-a-Bear we that we comments many concept. intellectual property question, more is and to I'd we immaterial, just are on understand didn't our to it SKOOSHERZ like the that note is in first, about mention But intellectual -- and our upstanding a animals. of why excited specifically would just

end for And the the Thank the remarks. we I'll closing to session. turn have Sharon call over John you. reached of now question-and-answer

you Thank at first you we call. for look quarter nice speaking your a day. to Have time our forward and today, to

concludes Thank you today's this you this conference, your for may and disconnect at participation. time. And lines your