Build-A-Bear Workshop, Inc. (NYSE: BBW), an interactive entertainment retailer, today reported results for the third quarter and first nine months ended September 29, 2012.
Third Quarter Fiscal 2012 Highlights:
- Consolidated net retail sales of $84.3 million represented an 11.9% decrease compared to $95.4 million in 2011, excluding the impact of foreign exchange;
- Consolidated comparable store sales decreased 11.1% which included an 11.8% decrease in North America and a 7.9% decrease in Europe;
- Achieved cost savings of $1.0 million; on track to achieve approximately $7.0 million of savings in fiscal 2012; and
- Net loss was $4.3 million, or $0.26 per share compared to net income of $0.9 million, or $0.05 per diluted share in the fiscal 2011 third quarter. Net loss in 2012 was negatively impacted by (i) $0.14 per share related to changes in the effective tax rate; and (ii) $0.02 per share resulting from a change in share count due to repurchases that were made in the fourth quarter of 2011.
Maxine Clark, Build-A-Bear Workshop’s Chief Executive Bear commented, “Clearly we are disappointed with the quarter’s results. We were up against a difficult comparison from last year when product tied to the theatrical release of the Smurfs led to incremental traffic and transaction growth throughout the quarter. However, we made progress on our key strategies which build on the foundation for our future.
“Sales in our new store design have exceeded our expectations, and this success allows us to add elements or in some cases fully remodel our most productive stores. At the same time, we expect to improve our profitability by closing an additional 50 to 60 underperforming locations over the next two years to reach our optimal count of 225 to 250 stores. We recently launched our brand building TV advertising which will reinforce our store experience, and we expect the classic theme of our holiday merchandise to lead to a solid performance in the fourth quarter,” Ms. Clark concluded.