On May 1, specialty retailer Build-A-Bear (NYSE:BBW) released first-quarter results for the period ended March 31. Here are the quick and dirty details.

  • Total revenue grew 18.4%, but same-store sales struggled, falling 6.9%.
  • Margins fell across the board and shares outstanding increased slightly, leading to a 4.9% fall in diluted earnings. The company also recorded a $0.14 charge related to a U.K. acquisition.
  • Management reduced guidance for the coming quarter and is calling for full-year earnings of $1.65 to $1.75, with flat to slightly negative comps in the core North American store base.
  • The tone is bearish on Build-A-Bear, as it carries a lowly one-star rating in Motley Fool's CAPS community. Toy rivals Mattel (NYSE:MAT) and Hasbro (NYSE:HAS) have slightly better two-star ratings. Kids may be increasingly embracing video games -- retailer GameStop (NYSE:GME) has a more favorable four-star rating.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Revenue

$116,814

$98,631

18.4%

Net Profit

$8,065

$8,346

(3.4%)

EPS

$0.39

$0.41

(4.9%)

Diluted Shares

20,525

20,401

0.6%

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin**

46.4%

49.0%

(2.6)

Operating Margin

10.7%

12.9%

(2.2)

Net Margin

6.9%

8.5%

(1.6)

*Expressed in percentage points.
**Does not include franchise or license fees.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$42,375

$43,398

(2.4%)

Accounts Rec.

$6,028

$7,297

(17.4%)

Inventory

$48,013

$43,591

10.1%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$44,167

$32,265

36.9%

The balance sheet reflects the company's health.

Cash Flow Highlights
Fools will have to wait until Build-A-Bear files its 10-Q with the Securities and Exchange Commission for juicy cash flow details. Find out why free cash flow is a Fool's best friend.

Related Foolishness:

Hasbro and GameStop are Stock Advisor recommendations, and Microsoft is an Inside Value pick. The Fool has a newsletter for almost every type of investor.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.