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Build-A-Bear Workshop's CEO Discusses Q2 2012 Results - Earnings Call Transcript

On the product front, one of the highlights of the second quarter was the strong reaction to our first ever tie in with the Girls Scout as we introduced a special bear in uniform in conjunction with our 100th anniversary. We saw a gain in our core demographic, Twins dress and drove an increase in our party business. We also had a great response to the Avengers costume collection that tied into the movie release, a big hit across the board, but especially with boys.

In marketing, we continue our two-prong approach, speaking to both kids and moms. We’ve had kids know about our new products and fun store experience and make it easy for moms to say yes. We see a renewed opportunity and some early positive results from rebalancing our experiential brand focus advertising and value added marketing events versus featuring only discount and promotional messages that had been needed during the economic downturn.

For example, in June, we brought back one of our most popular gifts for purchase, a summer beach towel and we saw strong guest response to the offer. Our enhanced brand focus has also shown benefit. We continue to engage on the emotional connection that guests have with our brand, with our year-long celebration of our 15th birthday and our Friends Count campaign. We are using this campaign to increase special occasion and celebratory events as reasons to visit a Build-A-Bear Workshop store.

Moms continue to be value focused. So we know it’s important to provide balance. For example, the coupon that was offered in the promotion we ran with McDonald’s continue to drive traffic into our stores throughout the second quarter.

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