Following the announcement of a new share repurchase initiative, shares of Build-A-Bear Workshop, Inc. (NYSE: BBW) experienced a notable increase during the after-market session on Wednesday. BBW stock saw an uptick of 5.67%, reaching $31.48, a significant recovery from its earlier regular-session performance where it had dipped by 0.43%, closing at $29.79.
Termination of Previous Program and New Authorization
The $50 million stock buyback plan that was previously announced on August 30, 2022, has been replaced by the newly announced repurchase program. By September 11, 2024, Build-A-Bear had used more than $44 million of the remaining money from the prior program to repurchase around 1.9 million shares at an average price of $23.05 per share.
The Board has now ended the prior program in favor of the new authorization, which allows for the repurchase of up to $100 million in common shares. Purchases made under this program may happen through one or more 10b5-1 plans, the open market, or privately negotiated deals.
Funding and Program Flexibility
This buyback program is expected to be financed by available financial reserves. The share price, market circumstances, legal requirements, and other factors will all play a role in determining the timing and scope of the repurchases.
New Partnerships
This month, the two-time Super Bowl champion Kansas City Chiefs and Build-A-Bear reached an exclusive multi-year agreement. In addition to other continuing opportunities for brand building, BBW will present the popular team mascot, “KC Wolf,” and the Chiefs digital Fan Cam experience, which involves fans finding a Build-A-Bear in the stands during each home game and tagging themselves in a high-resolution, full-stadium picture for a chance to win a special prize.
Additionally, Build-A-Bear becomes the “official bear” brand of the legendary squad as a result of this collaboration between the two Missouri-based enterprises. The two teams’ winning formula is highlighted by their multifaceted relationship, and adding the Kansas City Chiefs to the roster is unquestionably a touchdown.