Build-A-Bear shrinks Q3 net loss; sets 10 to 25 store closings
St. Louis -- Build-A-Bear Workshop shrunk its net loss in the third quarter of fiscal 2013 to $1.4 million from $4.3 million in the same quarter a year earlier. The company announced that it expects to close an additional 10 to 25 stores in fiscal 2013 and 2014 and, along with opportunistic store openings, expects to reach a store count of approximately 250 stores in North America.
Consolidated net retail sales were $83.6 million while operating 31 fewer stores compared to $84.3 million in the fiscal 2012 third quarter, a decrease of 0.9%.
In one bright spot, consolidated same-store sales increased 6.4%. That result included a 7.6% increase in North America and a 2.3% increase in Europe.
“The third quarter marked our fourth consecutive period of same-store sales growth in North America and our third consecutive increase in Europe,” said Sharon Price-John, CEO of Build-A-Bear. “Stronger same store sales productivity, along with reduced promotions and disciplined expense management, drove an improvement in our operating performance. We have a solid plan in place and I expect to capitalize on the upcoming holiday season with compelling product and marketing initiatives. We are establishing a foundation to deliver our stated objective of sustainable profitable growth and will continue to leverage the strength of the Build-A-Bear Workshop brand, our core competencies.”