Build-A-Bear Workshop swings to Q1 loss
St. Louis Build-A-Bear Workshop announced Thursday a net loss of $0.8 million for first quarter 2009, compared with a $6.4 million profit in the year-ago period.
The net loss included a pretax charge of $0.5 million associated with the previously announced closure of the friends 2B made retail concept.
Total sales for the quarter were $97.3 million, down from $123.8 million in first quarter 2008. Net retail sales were $96.3 million, compared with $121.9 million in 2008.
Same-store sales declined 17.8% in the quarter, and comprised a 20.5% decline in North America and a 5.6% increase in Europe.
“The decline in mall traffic and consumer spending has continued to affect our sales, but there were bright spots in the quarter which validate our business model,” said Maxine Clark, chairman and chief executive bear, Build-A-Bear Workshop. “When consumers were in the mall -- for example, Valentine’s Day and Easter -- we saw significant improvement in our sales and we are working to maximize these trends over the balance of the year.”
The company reported that plans to generate approximately $15 million in annualized pretax savings in fiscal 2009 are progressing on track. Capital expenditures expected at $9 million, down from $23 million in 2008, are also on-plan, said the company.
During first quarter 2009, the company did not open any new stores as planned, compared with opening four new stores -- two in North America and two in Europe -- during first quarter 2008.
In the fiscal 2008 third quarter, the company announced plans to close the friends 2B made concept, a line of make-your-own dolls and related products. The closure plan affected nine locations. In first quarter 2009 the company recorded a pretax charge of $0.5 million associated with the location closures. The majority of these charges are attributable to lease-termination costs.