The St. Louis company’s shares recently traded at $2.90, up 12%. They had slumped 20% year to date through Monday.
In the quarter ended Aug. 1, Build-A-Bear took in revenue of $40.4 million, down 49% from $79.2 million in the year-earlier quarter.
Store closures during the coronavirus pandemic hurt sales. But the latest revenue figure beat analysts’ prediction of $31.8 million, according to FactSet.
Build-A-Bear reported a net loss of $13.9 million, or 93 cents a share, for the latest quarter, widening from $1.2 million, or 8 cents, in the year-earlier quarter. Analysts estimated a GAAP loss of 81 cents for the latest quarter-
The adjusted loss was 82 cents a share in the latest quarter, widening from 2 cents a year earlier.
“Our second-quarter results show the impact of store closures in response to the Covid-19 pandemic and the significant shift to e-commerce," which nearly quadrupled for the company in the quarter, Chief Executive Sharon Price John said in a statement.
“We put actions in place to drive sales while reducing inventory and leveraging the high optionality that we had in place with leases to renegotiate terms on approximately 95% of our store locations to date.
"In addition, strict expense management, revised marketing activities and a corporate reorganization contributed to $14.2 million in cost savings, or a 40% reduction, as compared to the prior year’s second quarter.”
As of Aug. 2, Build-A-Bear had reopened 359, or some 90%, of its company-managed stores. Most of its third-party-managed and international franchised locations remained closed or operated under restrictions for most or all of the quarter, Build-A-Bear said.