Build-A-Bear Workshop reported results for the second quarter today with a total revenue of $94.7 million, a decline of 6 per cent compared to $100.4 million year on year.
The loss for the period was $4.8 million, or 25 cents per share compared to last year, the company reported net income of $1.6 million, or 8 cents per share.
Sales from Europe totalled $15.3 million in the second quarter, compared to $11 million year-on-year, an increase of 39 per cent. Sales in North America declined 20.5 per cent compared to a decline of 9.4 per cent in the 2007 second quarter.
During the period reported, the company opened four new stores in North America while in Europe it only opened one store in Liverpool, England.
“The slowdown in consumer spending is having a significant impact on our business,” said Maxine Clark, Build-A-Bear Workshop chairman and chief executive.
“While we will not provide specific earnings guidance for 2008, based upon our current business assumptions, we believe that our 2008 earnings will meet the average of current analysts’ estimates for earnings of 68 cents per share. Our outlook for the balance of the year reflects the current positive trends in our European operations as well as continued weakness in U.S. consumer spending.
“Looking to 2009, our capital spending plan is for a significant reduction in new store openings - six stores compared to 25 stores this year positioning us to maintain our strong balance sheet and financial flexibility" Clark concluded.