5th straight quarter of comp growth for Build-A-Bear
Build-A-Bear Workshop logged an increase in same store sales in the third quarter even as the company enters what is historically its most profitable season.
Same store sales at the specialty retailer increased 2.1% in the third quarter ended Oct. 3. This was the fifth consecutive quarter it grew same store sales.
“For the first nine months of 2015, we have delivered $8 million in pre-tax profit, the highest level since 2007,” said Sharon Price John, Build-A-Bear Workshop’s CEO. “This puts us in a solid position as we enter the fourth quarter, which is typically our largest and most profitable period of the year.”
Net income at Build-A-Bear was $1.1 million, or 6 cents per diluted share compared to net income of $1.8 million, or 10 cents per diluted share in the 2014 third quarter. Total revenues were $85.6 million compared to $86.7 million in the 2014 third quarter.
“We believe we have a balanced product portfolio planned for the fourth quarter designed to reach all of our key consumer segments,” John added. “Additionally, we remain focused on executing our long range strategies, which we believe will deliver sustained profitable growth and increased value for our shareholders,”
The company also outlined its “MORE x 4” strategic plan, which includes continuous improvement and strategic expansion initiatives in four areas:
Expanding into more places: The company intends to continue to evolve its real estate portfolio to align with market trends while selectively opening new locations and systematically remodeling its store base. To this end, in the third quarter, the company opened one new store and remodeled six stores in its new design, which was developed to increase productivity and update the brand look. The company also advanced its strategy to add non-traditional stores with the opening of five true outlet stores, as well as the expansion of its ongoing partnership with Macy’s in which it expects to open seven shop-in-shops for the holiday season.
Targeting more people:The company will focus on initiatives that drive trial and increase repeat visits withthe core 3- to 12-year-old consumer segment, including doing more online.
Developing more products:The company intends to expand its presence and create new revenue and profit streams by launching wholesale and out-bound licensing programs to leverage its strong brand equity. To this end, the company announced that Costco is offering Build-A-Bear branded, pre-packaged gift sets during the holiday season. In addition, the Company announced an agreement with Spin Master, Inc. to distribute a complementary toy line that is expected to launch in the fall of 2016.
Driving more profitability:The company intends to make continuing improvements in its value engineering initiatives to further enhance product margins while implementing new systems that should facilitate sales growth, increase efficiency and improve long term profitability.
The company currently has approximately 400 Build-A-Bear Workshop stores worldwide.