This is why I bought - blowout earnings and no debt (link)
This was a bear raid today - time to hop in:
Build-A-Bear Workshop Inc. swung to a profit in the fourth quarter and fiscal 2010, and said Thursday that it’s working with an outside consulting firm to review expenses and identify growth opportunities.
The retailer reported fourth-quarter net income of nearly $8.3 million compared with a loss of $916,000 in the fourth quarter of fiscal 2009.
For the 13 weeks ended Jan. 1, 2011, the retailer’s total revenue grew just 2 percent to $125.8 million from $123.1 million in the prior-year quarter.
Build-A-Bear said consolidated online sales rose 13.4 percent in the recent quarter, with strong growth in both North America and the U.K. as a result of product launches and new online marketing and promotion initiatives. Online sales were up 11 percent for the year.
For fiscal 2010, the company reported net income of $104,000, compared with a loss of $12.5 million in fiscal 2009, when it took a $9.6 million in noncash charges for asset impairment costs and losses associated with its investment in its Ridemakerz affiliate.
Build-A-Bear’s total revenue in all of fiscal 2010 was $401.5 million, up just over 1 percent from $395.9 million in fiscal 2009.
The company’s consolidated same-store sales in the recent quarter fell 3.7 percent, and fiscal 2010, fell 2 percent. Chairman and CEO Maxine Clark said while the quarterly decline in same-store sales was disappointing, “for the year, we stabilized our sales trends, increased our average transaction and improved our margins and we believe that our strategies remain on track to move us forward."
Clark said the company has begun working with an outside consulting firm to review its supply chain, logistics and other expense areas and the company expects to see savings in the second half of fiscal 2011.
“We are also working with the consultants to identify opportunities for revenue growth,” Clark said. “With a strong balance sheet that includes no debt, no borrowings on our credit facility and $59 million in cash at year end, we believe we are well positioned to capitalize on growth opportunities in the year ahead.”
In December, sources told Bloomberg that Build-A-Bear was seeking a buyer and has approached private-equity firms.
St. Louis-based Build-A-Bear Workshop Inc. (NYSE: BBW) is a chain of make-your-own stuffed animal stores. At year end 2010 it operated 344 company-owned stores: 290 in North America and 54 in Europe. The company currently operates more than 400 Build-A-Bear stores worldwide, including company-owned stores in the U.S., Puerto Rico, Canada, the United Kingdom and Ireland, and franchise stores in Europe, Asia, Australia, Africa, the Middle East, and Mexico.
Read more: Build-A-Bear posts profit, hires consultant | St. Louis Business Journal