Build-A-Bear Workshop, Inc.

Greetings and welcome to the Build-A-Bear Workshop first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gary Shinero, Investor Relations. Thank you, sir. You may begin.

Thank you. Good morning, everyone, and welcome to Build-A-Bear's first quarter 2025 earnings conference call. With us today are Sharon John, Build-A-Bear's chief executive officer, Chris Hurt, chief operating officer, and Voyne Todorovic, chief financial officer. During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially. Please refer to our forms 10-K and 10-Q, including the risk factor section. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our investor relations website. And now, I'll turn the call over to Sharon.

Thank you, Gary. Good morning, and thanks for joining us for Build-A-Bear's first quarter fiscal 2025 earnings call. Today, we are pleased to share that we have reported the best first quarter results in Build-A-Bear's history. Double-digit top-line growth drove record revenue, margin expansion, and strong performance across all segments. This represents impressive earnings per share growth of nearly 43%. The record-setting start to the year is largely due to the ongoing execution of our long-term strategy. Part of this strategy is centered on leveraging the high awareness and affinity of the Build-A-Bear brand to successfully expand by, first, introducing new product categories with, for example, the continued success of the Mini Beans Collectibles plush line. Second, extending consumer reach, such as the ongoing drive to appeal to the growing over-18 adult segment. And third, introducing our valued workshop experience, the building block of the Build-A-Bear brand, to new markets, particularly outside the United States, which has now driven the company's international presence into 30 countries. Let's review the quarter's highlights, all of which were Q1 records. Revenue increased 11.9% to more than $128 million. Pre-tax income grew 30.6% to nearly $20 million, and EPS increased 42.7% to $1.17. Additionally, we returned over $7 million in capital to shareholders. As a comparison point, reflecting our focus on continuous improvement over the years, the company's first quarter pre-tax margin rate of 15% compares to 3% for the first quarter of 2019, the last pre-COVID year. Without a doubt, the company's last four years of record-setting results, including a 25% store contribution margin with virtually all of the company's stores being profitable, and mid-teens pre-tech margin, followed by this best first quarter in the company's history, bolsters our overall confidence in the company, our team, our overarching strategy, and the strength of the Build-A-Bear brand. This is especially true considering those four years of positive results were achieved amid various economic and geopolitical headwinds. With this in mind, we are reiterating our 2025 revenue guidance. However, we are updating the company's pre-tax guidance inclusive of the current tariff rates. Boyne will provide more detail in his remarks. We believe the company's strong performance over the past four years is substantially due to our historic ability to successfully perform in volatile environments and is linked to a clean balance sheet, strong cash flow, a vertical, flexible retail model, and a relentless focus on controlling the controllables. This success validates the continued commitment to our three key strategic initiatives aimed at delivering long-term profitable growth. Specifically, one, the evolution and expansion of the company's experiential retail footprint. Two, the advancement of our comprehensive digital transformation. And three, the continued incremental investments to leverage Build-A-Bear's brand strength across multiple fronts while returning capital to shareholders. For our first strategic initiative, In the past few years, with the benefit of the company's three retail business models, we have accelerated our location expansion across the globe, ending the first quarter with over 600 locations, 30% of which are outside the United States. To provide some more information relating to the company's store expansion and evolution initiative, I would like to turn the call over to Chris Hurt, Build-A-Bear's Chief Operations Officer. Chris?