Dec. 4 at 2:47 PM
$BBW some key notes:
Bought back over
$10M worth of shares during the quarter at an avg
$60 price and have continued to repurchase shares this quarter. They notably have no debt, earn a 38% ROE and trades at ~12x EPS so the buybacks make sense
Gross margin was hit by tariffs as expected and was sequentially worse, but notably only marginally so YoY. They are making it up over time - this is the crux of short term concerns
Commercial revenue is guided closer to
$13M next quarter, an all time high and the crux of the long-term strategy given the very high operating margin and over 100% ROE - EBIT on this alone likely comes in at ~35% of total EBIT for the Q
At 12x EPS this probably trades with consumer sentiment in addition to tariff related news. With 2.3m shares short squeezy days like yesterday will be around
