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Build‑A‑Bear pops on record Q2 earnings results

Build-A-Bear soared over 13% heading into Thursday’s trading after the toy maker delivered record second-quarter earnings and revenue and raised its outlook. 

Diluted earnings per share were $0.94, well beyond estimates of $0.66 from analysts polled by FactSet. Revenue jumped 11% to $124.2 million, ahead of the Street’s forecast of $116 million.

Build-A-Bear also raised its full-year guidance, with the company now expecting revenue to climb mid- to high single digits. That’s up from its previous forecast for mid-single-digit growth and puts the midpoint of management’s guidance ahead of analysts’ expectations of 5.4% growth.

The brand’s margins improved thanks largely, management said, to fewer promotions, selective price hikes, and a rise in e‑commerce demand outweighing a rise in expenses like retail employee pay and “general inflationary pressures.” The brand also opened 14 new global locations, and inventory levels climbed as a hedge against tariff risks.

Build-A-Bear shares were up 33% year to date prior to the results.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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