Build-A-Bear Workshop, Inc.'s second-quarter profit plunges
Before the start of trading, stuffed-animals retailer Build-A-Bear Workshop, Inc. (NYSE: BBW) reported a 47% plunge in second quarter profit. The St. Louis-based company announced revenue of $100.4 million for the three months ended June 30, compared with $93.7 million a year earlier. However, foreign language costs associated with its Montreal and Puerto Rico locations - along with a $1.7 million loss for its U.K. operations - slashed profits.
For the period, Build-A-Bear reported $1.59 million in profit, compared with $3 million in second quarter 2006.
The company's comparable store sales in North America dove 9.4%, compared to a 4.4% decline in the same period of 2006. In June, the company appointed Lehman Brothers to look at strategic alternatives. The company will not be providing earnings guidance until the business review is completed.
"Our new store openings this quarter, including our first stores in Alaska, Montana and Puerto Rico, continue to drive our retail sales growth," CEO Maxine Clark said in a statement. "New stores in particular are an important driver of our overall profitability, while our older stores continue to contribute to our earnings."
During a morning conference call, Clark said the company will not have a Disney movie-themed product this holiday season. The company also announced a new Build-A-Bear social networking website it's unveling in the fourth quarter and a partnership with FedEx.
In today's trading, shares of the small-cap company lost $1.48, or 6.31%, at $21.99. Over the last 52 weeks, shares have ranged between $20.20 and $32.08.
