Build a bear the toys customization company has declared its quarterly results for the quarter ended December 2011. Build-A-Bear reported a loss of $9 million, or 56 cents per share. In the fourth quarter of 2010 it reported a profit of $8.3 million, or 42 cents per share. Excluding one-time items, Build-A-Bear said it earned 34 cents per share in the latest quarter. Revenue fell 5 percent, to $119.1 million from $125.8 million. The results have been below the expectations of the analysts who have expected the company to make revenues of $128 million.
The company has been facing pressure on its sales amid the economy. The company plans to close almost 15 to 20 stores over the year. The company is also hopeful of opening a few stores abroad.
Commenting on the results CEO Maxine Clark stated that “While our annual net retail sales were essentially flat with the prior year, I am disappointed to report a decrease in our fourth quarter sales after the increases we achieved in the second and third quarters,” “Our key holiday products tied into major theatrical releases, a strategy that has been highly successful for us in the past. However, the films under performed at the box office, which led to lower consumer demand and negatively impacted our fourth quarter sales and earnings. On a positive note, our gift card sales increased in 2011, reflecting the strength of our experience, and the subsequent redemptions have been a benefit for our post-Christmas business.”
We maintain a sell on the stock as we see no clear growth path for the company at least for the next twelve months. There are better opportunities available to invest and hence investors should avoid the stock for the time being