Thursday, May 21, 2009

Is Build-A-Bear Fad finally Over?

Faced with a slowing economy, Build-A-Bear Workshop (BBW-$4.51) has moved away from featuring its $18 and $20 stuffed toys in ad campaigns, going instead with $10 and $12 price points to attract walk-in traffic. Although management said it saw success in attracting new customers, the mall-based specialty retailer posted an $(826,000) loss in the first-quarter (compared to earnings of $6.4 million a year earlier) on a 25.5 percent decline in retail sales to $96.3 million. Can management find the right balance of merchandise across the range of price points to deliver operating profits—or has the “build-your-own” furry friends fad finally peaked? Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.


Anonymous said...

Say it's not so!

The horror of having to leave never-never land and face reality is such a painful experience. Just ask any resident of California since May 20, 2009.

Anonymous said...

Surely this demands a better headline? "Bear market bursting Build-a-bear bubble?"

Anonymous said...

I tend to agree; the gig is up. This is going to be one we look back on 5 years from now when we're reminiscing about the past and say, "God, can you remember that time we spent $30 for a stuffed animal." I'd put Build a Bear in the same category as slap bracelets, french rolled jeans, and big wheels.