Build-A-Bear Workshop, Inc.

It's over to Gary Tenero with Investor Relations. Thank you. You may begin.

Thank you. Good morning, everyone, and welcome to Build-A-Bear's third 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. Thank you, Gary. Good morning, and thanks for joining us for Build-A-Bear's third quarter fiscal 2025 earnings call. Today, I would like to begin by thanking the entire team for continuing to drive our positive momentum from the first half to deliver year-to-date record revenue and pre-tax income, results that reflect the many strategic and operational advancements we have been systematically executing over the past few years. Solid third quarter results, coupled with the consistency of the underlying fundamentals, give us confidence in reaffirming our full-year guidance, inclusive of ongoing tariff headwinds. Based on this guidance, Build-A-Bear is positioned to deliver fiscal 2025 revenue of over a half a billion dollars for the first time in the company's history. We believe our year-to-date results and positive outlook underscore the resilience of our evolved and diversified business model. Even as we navigate a challenging macro environment, we remain on track to deliver top-tier store contribution margins for the fifth consecutive year, while our asset-like commercial segment is expected to achieve its fourth straight year of growth exceeding 20%. This strong performance reflects our continued efforts to monetize the power, positioning, and equity of the Build-A-Bear brand, such as leveraging our multi-generational appeal to expand the addressable market, with teens and adults now representing about 40% of sales, opening unique experiential retail concepts, including new co-branded locations, and scaling through initiatives designed to go beyond our workshop, like our new mini beans collection. Simply put, we're building on the brand's iconic status to reach more people in more places with more types of products for more occasions. Specifically for the quarter, revenue grew nearly 3% to almost $123 million, and pre-tax income declined $2 million to nearly $11 million, inclusive of about a $4 million negative tariff impact. For the first nine months, revenue grew more than 8% to over $375 million, and pre-tax income increased by 15% to almost $46 million, inclusive of about $5 million in a negative tariff impact. We also returned more than $26 million to shareholders through dividends, as well as buybacks, which contributed to more than 24% EPS growth for the first three quarters of the fiscal year. Overall, shareholders have received over $160 million since the beginning of fiscal 2021. As we look toward the final and most impactful quarter of the year, our primary focus remains on delivering strong 2025 results. At the same time, we continue to advance the long-term strategic initiatives that position us for future success. As a reminder, these priorities have remained consistent over the last few years and include, one, expanding and evolving our experiential retail footprint, two, advancing our comprehensive digital transformation, and three, leveraging the powerful equity of the Build-A-Bear brand beyond our workshops while continuing to return capital to shareholders. Now, Chris Hurt, Build-A-Bear's Chief Operations Officer, who has been an instrumental part of delivering our positive results over the past decade, will share more on expanding our retail footprint. Chris?