Build-A-Bear Workshop 2009 Annual Report Download - page 6

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BUILD-A-BEAR WORKSHOP, INC. LETTER TO SHAREHOLDERS
2
lette r to shareholders
As a company, we focused on cost savings and cash
management, as we cut back store openings and capital
expenditures. Even though we made considerable cuts
and changes on the business side, we maintained our
fun and engaging experience for our Guests. In 2009
nearly 80 percent of all Guests gave us the top score
on overall satisfaction! We were proud to be named
to the Fortune 100 Best Places to Work For® list for the
second year in a row. We also invested in key talent,
naming John Haugh as President and Chief Marketing
and Merchandising Bear.
As we move into 2010, we believe our brand is
stronger than ever, our fi nancial position is solid and
our initiatives are showing continued signs of success.
Our 2009 financial results
In total, revenues were $394.4 million and net loss
adjusted for certain charges was $0.10 per share.
We ended the year with 410 stores, 291 in North
America, 54 in Europe and 65 franchise locations.
In North America, our comparable store sales
results improved every quarter from a low of minus
20.5 percent in the fi rst quarter fi nishing the year at
negative 13.3 percent in the fourth quarter. We are
pleased to report that this trend continued to improve
in the fi rst quarter of 2010.
We continued to show strength in our European
operations. Total revenues were up 9.0 percent,
excluding the impact of foreign exchange, and
comparable store sales increased by 5.0 percent.
Through the hard work of our Associates, we
saved $25 million, exceeding our original goal of
$15 million. This savings included $22 million in
lower selling, general and administrative expenses.
We ended the year with a strong balance sheet
that included $60.4 million in cash, an 11.3 percent
reduction in inventory per square foot and we
maintained a debt free balance sheet under our
revolving credit facility, which we extended until
December 31, 2011.
Dear Shareholders,
As we began 2009, we expected a challenging year given the diffi cult global economy, but I am pleased to report
that Build-A-Bear Workshop® made steady progress toward achieving our long-term goals. Even with considerable
uncertainty on the part of consumers, our stores remained a special place where people came to experience our
beary fun world. As our Guests became more focused on necessities and saving money, we delivered millions of
smiles by giving Moms more value with product that was priced right, by offering special promotions during periods
of high mall traffi c, and by engaging kids in fun and exciting new products and events.