Slide 1: Build-A-Bear Investor Overview
Build-A-Bear Investor Overview May 2025
Slide 2: Important Disclosures
Important Disclosures Forward-Looking Statements This presentation may contain “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. We generally identify these statements by words or phrases such as “may,” “mi
Slide 3: Build-A-Bear began as a pioneer of Experiential Retail
Build-A-Bear began as a pioneer of Experiential Retail Click to see how Build-A-Bear has become so much more 3
Slide 4: And is now a powerful brand
And is now a powerful brand WELL-KNOWN RESPECTED BELOVED >90% Aided Brand The #1 ~100m store and web Awareness* North American toy visits per year*** retailer** OUTSIZED BRAND EQUITY PART OF POP CULTURE One of the 20 most Iconic, ~30 billion annual influential retailers media impressions and in Nort
Slide 5: We have improved our financial results
We have improved our financial results 2024 Snapshot 2019-2024 Growth Total Revenue $496M 47% Net Retail Sales $460M 42% Third-Party Revenue* $36M 140% EBITDA** $81M 430% Margin 16.3% +1,180 bps Diluted EPS $3.80 NM*** FCF $28M 199% ROIC 33.0% NM*** Store Contribution Mgn**** 25% + > 1,000 bps *Thir
Slide 6: By diversifying the business
By diversifying the business Beyond Kids Expanding To More Ages ~40% of sales to Appealing to older consumers through pop culture, teens and adults* licensed relationships and our Bear Cave microsite Beyond Stores Expanding Online Web Demand** has grown ~110% Buildabear.com sells mostly to collector
Slide 7: And evolving our store footprint
And evolving our store footprint Partner Store Growth Store Count Mix 138 14% 22% 92 23% 70 62% 58 61 56 78% 39 2017 2024 Corporately Managed Partner-Operated Franchised 2017 2018 2019 2020 2021 2022 2023 2024 Partner-Operated Stores were launched domestically in 2018, and internationally in 2023 7
Slide 8: We have expanded both sides of our business model
We have expanded both sides of our business model Net Retail Sales Third-Party Revenue** (Direct-to-Consumer Segment*) (Commercial & Intl. Franchise Segments) +42% +139% $460.0 $36.0 $323.5 $15.1 $M $M 2019 2024 2019 2024 *Direct-to-Consumer (DTC) is sales by Company-managed retail stores and two e-
Slide 9: And we have entered a new era of profitability
And we have entered a new era of profitability Net Retail Pretax Income Third-Party Pretax Income (Direct-to-Consumer Segment) (Commercial & Intl. Franchise Segments) +$12M +$54M $16.8 $50.4 $4.8 $M ($3.3) $M 2019 2024 2019 2024 -1.0% 10.9% 32.1% 46.5% Margin Margin Margin Margin Third-Party Pretax
Slide 10: Consistent returns position us for a new phase of growth
Consistent returns position us for a new phase of growth Free Cash Flow* ROIC* +44% $46.0 37.5% 35.9% 35.7% 33.0% $33.6 $27.6 $19.2 $M 2021 2022 2023 2024 2021 2022 2023 2024 2023 was a 53-week year; 2024 reflects a temporary drag from working capital timing dynamics. *Free Cash Flow and Return on I
Slide 11: We have multiple levers to grow the business
We have multiple levers to grow the business Domestic Store International Store New Category Web Growth/ Wholesale Growth Growth Introductions Gifting Sales Growth All Driven By Our Circle of Engagement Content Increased Consumer Base Consumer Growth Connection More Loyalty Purchase Programs Occasio
Slide 12: And we have restarted new store unit growth
And we have restarted new store unit growth A teddy bear hug is understood in every language. Total Experience Locations (includes Corporate, Partner and Franchised stores) 639 589 We are expanding domestically & internationally in three 522 525 models and through our multiple store 488 481 479 form
Slide 13: We generate revenue from product sales at retail, at wholesale, and from royalties
We generate revenue from product sales at retail, at wholesale, and from royalties International Retail Commercial Franchising DTC Wholesale sales Sales-based royalty (Corporate stores and websites (includes US & Intl. revenue, development fees, Fiscal 2024 in US, UK, CN) partner-operated stores) an
Slide 14: At retail, multiple store models produce top tier unit economics
At retail, multiple store models produce top tier unit economics Corporate Store Returns 2024 Results for store classes Discovery Concourse/SIS of 2019, 2020, and 2021 Store Model* Store Model* Avg. Corp Store Unit Vol. $1,578K $615K 4-Wall EBITDA** $535K $152K 4-Wall EBITDA margin 34% 25% Avg. Net
Slide 15: Commercial is our fastest growing segment
Commercial is our fastest growing segment Partner-Operated Stores Commercial Revenue +25% +63% CAGR CAGR $31.4 138 $25.4 92 $18.5 Launched 70 61 international 56 $11.5 Partner- Operated Stores $4.4 $M 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Commercial revenue is primarily wholesale sales,
Slide 16: International Franchise is also growing
International Franchise is also growing Intl. Franchise Stores Intl. Franchise Revenue +29% CAGR 83 $4.5 $4.7 72 74 71 68 $3.2 $2.3 $1.7 $M 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Intl. Franchise revenue includes sales-based royalties, development fees, and merchandise sales 16
Slide 17: Systemwide Sales exceed revenue
Systemwide Sales exceed revenue Revenue Systemwide Sales* +$10M +$13M $548.1 $535.0 $508.5 $486.1 $496.4 $467.9 $440.0 $411.5 $371.4 $338.5 $272.5 $255.3 $M $M 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Systemwide Sales exceed revenue because it includes BAB product sales at all sto
Slide 18: While growing, we are returning capital to shareholders
While growing, we are returning capital to shareholders $133M ($9.14/share*) Returned to Shareholders 2021-2024 The Company paid special dividends in December 2021 and $20.5 April 2023, and in April 2024, it paid Share Repurchase an initial quarterly cash dividend $31.0 $4.4 of $0.20 per share. In M
Slide 19: Our opportunity to sell more products to more people in more places
Our opportunity to sell more products to more people in more places is a testament to the power of the brand The specialty toy company that helped define experiential retail in the late ’90s has not only survived but thrived. From inspiring viral moments, generating products that leverage pop cultur
Slide 20: Financial Review
Financial Review
Slide 21: Fiscal 2024 was the most profitable year in Build-A-Bear history
Fiscal 2024 was the most profitable year in Build-A-Bear history Revenue $496.4M, +3.6%* Pretax Income $67.1M, +5.1%* Net New Unit Growth** 64 units Gross Profit Margin 54.9%, + 50 BPS 2024 was our fourth EBITDA $81.1M, 16.3% margin consecutive year Adj. EPS $3.77, +10.2%*** of record growth YE Cash
Slide 22: Q1 2025 was our most profitable first quarter
Q1 2025 was our most profitable first quarter Revenue $128.4M, +11.9% Pretax Income $19.6M, +30.6% Net New Unit Growth* 15 units Gross Profit Margin 56.8%, + 260 BPS EBITDA $23.1M, 18.0% margin EPS $1.17, +42.7% Quarter-end Cash $44.3M Dividend $2.9M Stock Repurchased $4.2M *Net New Unit Growth incl
Slide 23: Fiscal 2025 Guidance calls for continued top-line growth
Fiscal 2025 Guidance calls for continued top-line growth* Revenue** MSD growth Pretax Income $61M-$67M Net New Unit Growth*** At least 50 units Capital Expenditures $20M-$25M Depreciation & Amortization ≈$16M Tax Rate**** 22% - 24% Pretax income includes the impact of less than $15 million in additi
Slide 24: BBW Key Statistics
BBW Key Statistics Share Price - May 23 $40.89 Shares Out. 1Q-end 13.15M Market Capitalization $538M Cash 1Q-end 44.3M Qtly. Dividend/Yield $0.22/2.2% Float (est.) 96.0% Avg. Daily Vol. (3 mos.) 290,000 Source: BAB, NYSE Connect 24
Slide 25: Appendix
Appendix
Slide 26: Build-A-Bear Non-GAAP Reconciliations
Build-A-Bear Non-GAAP Reconciliations Systemwide Sales, Free Cash Flow, EBITDA Fiscal Year-End ($ millions) 2019 2020 2021 2022 2023 2024 Fiscal Year-End ($ millions) 2022 2023 2024 Systemwide Sales: Calculation of Free cash flow Net retail sales 323.5 249.2 397.7 446.2 456.2 460.3 Net cash provided
Slide 27: Build-A-Bear Non-GAAP Reconciliations
Build-A-Bear Non-GAAP Reconciliations Return on invested capital, Segment ROIC Fiscal Year-End ($ millions) 2022 2023 2024 Fiscal Year-End ($ millions) 2024 Fiscal Year-End ($ millions) 2024 Calculation of Return on Invested Capital Calculation of Return on Invested Capital Calculation of Return on
Slide 28: Contact Information
Contact Information Gary Kim Schnierow Utlaut VP, Investor Relations SVP, & Corporate Finance Chief Brand Officer GaryS@buildabear.com KimU@buildabear.com 28