Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Web sales decline 7.8% for the retailer of customizable soft toys.
Build-A-Bear Workshop Inc. says the lack of a movie tie-in in the third quarter made for a difficult comparison with the third quarter of 2011 when promotions tied to the release of “The Smurfs” helped boost sales. Build-A-Bear is No. 538 in Internet Retailer Second 500 guide.
For the quarter ended Sept. 29, Build-a-Bear reported:
- Web sales were $2.26 million, a decrease of about 7.8% from $2.45 million in Q3 2011.
- Total sales decreased 11.7%, to $86.0 million from $97.4 million.
- Comparable-stores sales decreased 11.1%.
- A net loss of $4.3 million compared with an $854,000 profit in the third quarter of fiscal 2011.
Online sales accounted for 2.6% of total sales in the quarter compared with 2.5% in Q3 2011.
“Clearly we are disappointed with the quarter’s results,” says Maxine Clark, CEO of Build-a-Bear, a retailer of customizable stuffed animals. “We were up against a difficult comparison from last year when the product tied to the theatrical release of ‘The Smurfs’ led to incremental traffic and transaction growth throughout the quarter.”
For the first nine months, Build-A-Bear reported:
- Web saleswere $7.57 million, an increase of about 2.2% from $7.41 million in the first nine months of fiscal 2011.
- Total sales were $262.8 million, down by 4.5% from $275.2 million.
- Comparable-stores sales decreased 4.0%.
- Net loss was $12.8 million, compared with a net loss of $8.1 million in the first nine months of fiscal 2011.
E-commerce sales accounted for 2.9% of total sales compared with 2.7% in the same period last year.