BBW (Build a Bear Workshop)

[HenryTo]

Is this company merely a fad or can they continue to "innovate" going forward? I haven't personally looked at their financials but the short interest ratio and the percentage of the float shorted for this company is nothing short of amazing:

http://finance.yahoo.com/q/ks?s=bbw

The shorts in this company are even more excited than the shorts over at DAL (Delta Airlines). Note that the company is reporting earnings tomorrow morning.

[HenryTo]

I think the shorts are too early in this case. Note that the stock has just broke though its 50 DMA.
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Build-A-Bear profit beats estimates, stock jumps
Thu Jul 28, 2005 09:59 AM ET

NEW YORK, July 28 (Reuters) - Build-A-Bear Workshop Inc. (BBW.N: Quote, Profile, Research) , a retailer that lets customers make their own stuffed animals, on Thursday posted better-than-expected second-quarter profit, sending its shares up 6 percent.

Net income totaled $3.5 million, or 17 cents per share, 4 cents better than the average forecast among analysts polled by Reuters Estimates.

The company, which went public in October, earned $4.9 million, or 27 cents per share, in the year-ago second quarter.

Revenue rose 11 percent, to $73.7 million from $66.1 million. Analysts were expecting $74.2 million.

Sales at stores open at least a year, a key retail metric known as same-store sales, fell 6.9 percent in the quarter.

Earlier this month, Build-A-Bear, which recently opened a flagship store in New York, said it expected same-store sales for the quarter to decline in the mid-single digit range. Its initial forecast had been for an increase of 2 percent to 3 percent.

The company said the Easter holiday, an important selling time, occurred in the first quarter this year and in the second quarter in 2004, hurting year-on-year earnings comparisons.

Build-A-Bear said it expects full-year profit of $1.24 to $1.30 a share. Analysts expect $1.17, according to Reuters.

The company's shares were up $1.46 to $24.94 in morning trade on the New York Stock Exchange. (Additional reporting by Karen Jacobs)