Interactive entertainment retailer Build-A-Bear Workshop, Inc. has said that its fourth quarter total revenue decreased 4% to $142.1 million and full-year total revenue decreased 1% to $467.9 million. The company also announced plans aimed at streamlining costs while prudently scaling back on capital expenditures in an effort to preserve profitability and cash flow in response to the challenging economic environment.
The company expects to generate approximately $15 million in annualized pre-tax savings in fiscal 2009 from the implementation of its cost reduction initiatives, while capital expenditures are expected to decline 61% to approximately $9 million from $23 million in fiscal 2008.
Total revenues were $142.1 million in the fiscal 2008 fourth quarter compared to $147.4 million in the fiscal 2007 fourth quarter. Consolidated comparable store sales declined 15.7% including a 6.7% increase in Europe and a 19.0% decline in North America (fourth quarter comparable store sales are compared to the 14 week period ended Jan. 5, 2008);
Net income was $5.0 million, or $0.27 per diluted share, compared to fiscal 2007 fourth-quarter net income of $9.9 million, or $0.48 per diluted share
Total revenues were $467.9 million in the fiscal 2008 full year compared to $474.4 million in the fiscal 2007 full year (52 weeks ended Dec. 29, 2007) and consolidated comparable store sales declined 14.0% including a 7.7% increase in Europe and a 16.8% decline in North America (full year comparable store sales are compared to the 53 week period ended Jan. 5, 2008).
Net income was $4.6 million, or $0.24 per diluted share, compared to fiscal 2007 net income of $22.5 million, or $1.10 per diluted share.
Fiscal 2008 fourth-quarter total revenues include net retail sales of $139.9 million, a decrease of $5.0 million or 3.4% compared to last year’s fourth quarter. Net retail sales growth benefited from the 53rd week in fiscal 2008, new stores opened during the past twelve months, an increase in comparable store sales from European operations, and a $2.7 million adjustment to the loyalty program deferred revenue; these benefits were offset by a decrease in comparable store sales in North America.
Net retail sales from European operations totaled $24.9 million in the 2008 fourth quarter, compared to $23.5 million in the 2007 fourth quarter, an increase of 5.8%. Pre-tax income from European operations totaled $1.8 million in the 2008 fourth quarter, compared to $5.1 million in the 2007 fourth quarter. Fourth quarter results include $3.0 million of intercompany and store asset impairment charges. Excluding these items, 2008 fourth quarter pre-tax income totaled $4.8 million.
During the 2008 fourth quarter, the company opened four new stores in North America, as planned, compared with eight new stores during the 2007 fourth quarter.
