The economic downturn has not been cozy for customized stuffed animal retailer Build-A-Bear Workshop Inc., where third quarter web sales fell 14.5% year over year to $1.73 million as total retail sales fell 15.2% and net loss more than doubled.
The retailer, No. 450 in the Internet Retailer Top 500 Guide, posted the following Q3 results:
- Web sales of $1.73 million for the quarter ended Oct. 3 were down 14.5% from $2.02 million in the year-earlier quarter ended Sept. 27, 2008;
- Web sales were 1.93% of total retail sales, compared with 1.91% a year ago;
- Total net retail sales fell 15.2% to $89.7 million from $105.8 million in the year-earlier quarter;
- Net loss was $4.76 million, more than double the year-earlier net loss of $2.02 million;
- Comp-store sales were down 12.9%.
Build-A-Bear reporting the following for the 39 weeks ended Oct. 3:
- Web sales fell 13.5% to $5.97 million, down from $6.89 million from the year-ago period;
- Web sales accounted for 2.23% of total net retail sales, compared with 2.15% a year ago.
- Total net retail sales fell 16.7% to $267.4 million, down from $321.1 million a year ago;
- Net loss was $11.56 million, compared to $413,000 a year earlier.
Build-A-Bear had 345 stores as of Oct. 3, up from 288 a year ago.
Build-A-Bear says that, for the first time, its products will be featured in an animated video program due to appear Nov. 24 on ABCFamily.com.
The retailer says it has renewed a line of credit with US Bank National Association. The two-year extension expires in December 2011 and provides the company with $40 million in available credit for the first half of each calendar year and a seasonal overline to $50 million from July to December each year.
Build-A-Bear also says its cost reduction plans are progressing ahead of schedule. The company now expects to generate about $20 million in annualized pre-tax savings in 2009, up from a previous estimate of $18 million.