Build-a-Bear sales up, but reports net loss
Build-a-Bear Workshop, Inc. (NYSE: BBW), an interactive entertainment retailer, reported revenue growth in second-quarter helped by customers spending more and strong e-commerce sales, but reported a net loss.
During afternoon trade, shares in the company rose five cents, or 0.83% to $6.09 per share on the New York Stock Exchange.
Excluding the impact of foreign currency, total revenue climbed 9% to $81.8 million in the second quarter ending July 2. That compares with $74.1 million in the prior year.
In the quarter, the company reported a net loss of $6.7 million, or 37 cents a share, compared to $8.5 million, or 45 cents per share.
This latest quarter included consulting fees of $0.9 million, or five cents a share, and an impairment charge related to long-term deposits of $0.3 million, or two cents per share.
Analysts had expected a loss on earnings of 30 cents, according to MarketWatch.com
The company said stores open at least one year rose 7.1% which included an 8.3% rise in North America and growth of 1.3% in Europe. It said sales were driven by a 5.4% increase in transactions and a 1.7% increase in average transaction value.
Also the quarter's results were positively impacted by the shift of the Easter holiday.
Build-a-Bear Workshop saw strong e-commerce sales, up 22.8% in the quarter reflecting the success of web-specific marketing initiatives, it said.
The company opened one store, closed three stores and relocated four existing locations and, for the full fiscal year, currently expects to open five stores and close five to 10 stores.
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