Build-A-Bear Workshop, Inc. reported as part of its financial results that consolidated eCommerce demand surged by 104 percent in the fourth quarter of 2020 compared to the fourth quarter of fiscal 2019, according to a Wednesday (March 10) announcement.
The company registered a 50.1 percent gross profit margin for the fourth quarter of 2020 compared to 50.4 percent in the fourth quarter of fiscal 2019, while it said it had $37.8 million in selling, general and administrative expenses (SG&A) compared to $45.2 million in the fourth quarter of fiscal 2019.
As for its overall results, Build-A-Bear Workshop registered 57 cents in net income per diluted share on $93.7 million in total revenues. The results exceeded analysts’ estimates of 16 cents per share of earnings on $90.49 million in revenues.
Build-A-Bear had 354 corporately managed stores as of Jan. 30, 2021, with some stores continuing to be closed due to government restrictions.
“While the company’s response to the pandemic included renegotiating over 90 percent of its corporately-managed store leases in fiscal 2020, it maintains a high level of lease optionality, with over 75 percent of locations having a lease event within the next three years,” the company said in the announcement.
Build-A-Bear said it had $34.8 million in total cash as of Jan. 31, 2021, and concluded the fiscal year without borrowings under its revolving credit facility.
“During a year with great global disruption, I am proud of our organization’s ability to rapidly respond and make the changes needed to deliver $9.2 million in pre-tax profit in the fourth quarter … as well as a stronger year-end cash position,” noted Build-A-Bear Workshop President and CEO Sharon Price John.
In January, Build-A-Bear predicted that eCommerce demand for the fiscal 2020 fourth quarter would soar between 90 percent and 100 percent compared to the fiscal 2019 fourth quarter. The retailer also expected total revenues in the range of $88 million and $92 million, compared to $104.6 million in the fiscal 2019 fourth quarter. Moreover, the retailer said it underwent a “significant reduction” in store traffic in the nine weeks leading up to Jan. 2, 2021.