Build-A-Bear Workshop posts mixed Q1; opening store in Empire State Building
St. Louis -- Build-A-Bear Workshop said its total revenue fell 5% in the first quarter amid harsh winter weather between Valentine’s Day and Easter in North America.
The chain’s profit for the quarter, ended March 29, totaled a better-than-expected $8.3 million, compared with from $5.1 million in the year-ago period.
Total revenues were $93.4 million, less than expected, compared to $97.9 million in year-ago period. Revenue was also negatively impacted by fiscal 2014 having a 53rd week, the company said.
Consolidated e-commerce sales rose 9% excluding the impact of foreign exchange.
Consolidated same-store sales increased 2%, which included a flat performance in North America and a 13% increase in Europe.
Moving forward, the retailer said it plans to open additional stores in high potential destinations such as tourist locations, outlet malls and shop-in-shops, which have proven more productive than traditional mall stores. In the first quarter, the company solidified plans to open four stores in outlet centers with the first location expected to open in July in Rehoboth Beach, Delaware.
On the retailer’s quarterly conference call, CEO Sharon Price John said the company plans to open a store in July on the ground floor of the Empire State Building in Manhattan as its temporary Times Square store closes this summer.
The retailer also said it recently revealed a new store design that incorporates “evolved” branding and is focused on elevating the consumer experience while improving overall store productivity. It is planning to update between 10 and 15 stores in this design in the back half of the year, with the first location opening in August.
“Included in our plan is our multimillion dollar flagship store, in the mall of America with the grand reopening scheduled for October,” John said on the call.
During the quarter, Build-A-Bear Workshop closed eight stores and opened one location to end the period with 317 company-owned stores, including 257 in North America and 60 in Europe. The company’s international franchisees ended the 2015 first quarter with 69 stores in 13 countries.
Thirty percent of consumers either own or plan to buy a wearable device in the next 12 months, and 34% of those consumers want wearable technology to make their lives easier – and that includes shopping. Those are among the findings of a new study by PowerReviews, a ratings and reviews provider.
The study, “Mobile, Wearable Tech and Hyper-Relevance,” analyzes how new technologies are impacting retail. It finds that more than twice as many shoppers are accessing product reviews in-store via retailer’s mobile site (54%) than a retailer’s app (21%).
In other findings:
Shoppers are most interested in using wearable tech to:
• Navigate in-stores with interactive maps (20%);
• Make seamless, one-click payments (22%);
• Be alerted to in-store happenings like long lines in stores (25%); and
• Be reminded of special events (birthdays, anniversaries, holidays) while shopping in-store (28%).