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Old 12-26-2018, 09:53 PM
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Post Build-A-Bear Workshop, Inc. Reports Fiscal 2018 Third Quarter Results (SPOILER: it's a loss)

This article is almost a month old and I'm sure a lot of you have already seen it, but I'm going to post some parts I found interesting from it:

Click the image to open in full size.
(full article at https://www.businesswire.com/news/ho...uarter-Results)

ST. LOUIS--(BUSINESS WIRE)--Build-A-Bear Workshop, Inc. (NYSE: BBW) today reported results for the fiscal 2018 third quarter and 39 weeks ended November 3, 2018. Given the Company’s previously announced fiscal year-end change, references to the prior year are based on the unaudited recast results for the fiscal year ended February 3, 2018.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer, commented, “In a seasonably small third quarter in which we had forecasted a loss, we ultimately delivered sales and profitability below expectations. The majority of the shortfall was driven by three circumstances. First, we chose to strategically deemphasize our historically successful National Teddy Bear Day promotion to avoid the potential of long lines and frustrated guests on the heels of the Pay Your Age Day events. Second, our U.K. business continued to decline beyond expectations due to a challenging retail environment brought on by Brexit and the implementation of new privacy laws that have significantly inhibited our ability to build our contact database and market directly to our guests. And finally, organic family traffic to traditional malls continued to struggle which we believe was exacerbated by the comparative lack of high impact animated films that tend to bring our target demographic to malls with co-located theaters. Historically, we have seen increased traffic and sales associated with child-friendly film releases."

...Third Quarter 2018 Highlights (13 weeks ended November 3, 2018, compared to the 13 weeks ended October 28, 2017):
  • Consolidated revenues were $68.7 million compared to $76.2 million in the fiscal 2017 third quarter, a decrease of $7.5 million;
  • Consolidated revenues decreased 9.8%, including a 7.4% decrease in North America and a 23.1% decrease in Europe, and also inclusive of a 17.8% increase in consolidated e-commerce sales. European results continue to reflect the impact of the ongoing uncertainty surrounding Brexit, as well as the May 2018 implementation of new privacy laws, which severely inhibited the Company’s ability to directly market to guests;
  • Consolidated net retail sales were $65.3 million, a decline of 12.3%, compared to $74.4 million in the fiscal 2017 third quarter;
  • Retail gross margin dollars decreased $8.0 million to $23.2 million compared to the fiscal 2017 third quarter. The retail gross margin rate declined 640 basis points to 35.5% including approximately 150 basis points related to non-cash store impairment charges outside of the U.S. and the adoption of the new revenue recognition standard as well as approximately 370 basis points related to the deleverage of fixed occupancy costs. The remaining decline was driven primarily by higher promotional activity related to the residual effects of Pay Your Age Day as well as the deleverage of distribution costs in the quarter. Notably, total occupancy and distribution costs were flat even with a higher store count resulting in a lower average cost per store;
  • Selling, general and administrative expenses were $35.1 million, a decline of $1.1 million compared to the fiscal 2017 third quarter. The decrease was primarily driven by lower payroll and advertising costs;
  • Pre-tax loss was $10.0 million compared to $3.9 million in the fiscal 2017 third quarter;
  • Income tax benefit was $3.9 million with an effective tax rate of 39.3% compared to $1.4 million in the fiscal 2017 third quarter. The 2018 effective tax rate differed from the statutory rate of 21% primarily due to the jurisdictional mix of earnings; and
  • Net loss was $6.1 million, or $0.42 per share, compared to a net loss of $2.5 million, or $0.16 per share, in the fiscal 2017 third quarter.
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I'm not praising her by any means, but I was actually pleasantly surprised to see Sharon pinpoint a lack of well-known animated films as a reason for the decline in sales. I think it's just because I'm not used to seeing her show honesty. What are your thoughts?
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Old 12-26-2018, 10:04 PM
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"we chose to strategically deemphasize our historically successful National Teddy Bear Day promotion"

I mean... I get that you're trying to recover after the first failed Pay Your Age in the UK, and then the second failed Pay Your Age in the US, but... really? It's proven to be a better success than Pay Your Age, and you're deemphasizing it?!
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Old 12-26-2018, 10:08 PM
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View Post Originally Posted by CambriaSpeedRacer
"we chose to strategically deemphasize our historically successful National Teddy Bear Day promotion"

I mean... I get that you're trying to recover after the first failed Pay Your Age in the UK, and then the second failed Pay Your Age in the US, but... really? It's proven to be a better success than Pay Your Age, and you're deemphasizing it?!
I was very confused by this myself. It just goes to show how confusing and poorly thought out Sharon's plans are.
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Old 12-29-2018, 08:15 AM
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View Post Originally Posted by AbbygailBearDiva59
I was very confused by this myself. It just goes to show how confusing and poorly thought out Sharon's plans are.
like killing an online world and disenfranchising a generation of repeat customers?

the way club penguin island went to offline world is much better way to handle change.

but bear valley was already so bad before closing bearville...

stock is at a price to be bought if you think they will recover.

i remember the price going from $4 to $5 one day when Maxine announced plan for retirement. could happen again.

went to babw location in mall. the whole mall experience was not pleasing from getting to the mall, the parking, walking to building. babw product too high and not quality.
the costumes were about the same price as the disney store ones for children instead of for toys. quality comparison so much better for disney.

pop candy animals??? disgusting

get decent quality non-china made product. we bought many things from GO toy locations, but none from babw.

manager looked frazzled post holiday...

club penguin island clothing making process is ideal.
wonder if it could be adapted to real store, putting patterns on cloth and displaying before purchase. could be used for animal fur...
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Old 01-01-2019, 04:22 AM
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View Post Originally Posted by st2nic
like killing an online world and disenfranchising a generation of repeat customers?

the way club penguin island went to offline world is much better way to handle change.

but bear valley was already so bad before closing bearville...

stock is at a price to be bought if you think they will recover.

i remember the price going from $4 to $5 one day when Maxine announced plan for retirement. could happen again.

went to babw location in mall. the whole mall experience was not pleasing from getting to the mall, the parking, walking to building. babw product too high and not quality.
the costumes were about the same price as the disney store ones for children instead of for toys. quality comparison so much better for disney.

pop candy animals??? disgusting

get decent quality non-china made product. we bought many things from GO toy locations, but none from babw.

manager looked frazzled post holiday...

club penguin island clothing making process is ideal.
wonder if it could be adapted to real store, putting patterns on cloth and displaying before purchase. could be used for animal fur...
I saw what Disney did with CPIsland, and I agree that their method was much better than BABW's (although they could've handled the original Club Penguin's closing a bit better, but oh well.)
A Disney plush store is likely going to appeal to kids much more than a BABW would. Most kids between 3-11 have probably never even heard of it.
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Old 01-01-2019, 11:38 AM
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View Post Originally Posted by AbbygailBearDiva59
I saw what Disney did with CPIsland, and I agree that their method was much better than BABW's (although they could've handled the original Club Penguin's closing a bit better, but oh well.)
A Disney plush store is likely going to appeal to kids much more than a BABW would. Most kids between 3-11 have probably never even heard of it.
To be fair Classic CP shutdown came with the full knowledge that it wasn't the end, and while the shutdown was handled somewhat poorly, they still managed to handle it better than BABW

But yeah Disney is infinitely more popular than BABW
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Old 01-02-2019, 01:25 AM
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so best guess...will babw stock recover?

if they made normal profit for this quarter ... would value double this year?
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Old 01-14-2019, 05:44 PM
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View Post Originally Posted by CambriaSpeedRacer
To be fair Classic CP shutdown came with the full knowledge that it wasn't the end, and while the shutdown was handled somewhat poorly, they still managed to handle it better than BABW

But yeah Disney is infinitely more popular than BABW
Let's be real, every virtual world shutdown was handled at least slightly better than BV's shutdown
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Old 01-14-2019, 05:47 PM
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View Post Originally Posted by AbbygailBearDiva59
Let's be real, every virtual world shutdown was handled at least slightly better than BV's shutdown
...point
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Old 01-14-2019, 05:54 PM
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Apparently Pay Your Age Day was actually a riveting success!

https://www.businessinsider.com/buil...success-2019-1

You could call Pay Your Age Day a lot of things... but a success?
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