Build-A-Bear Workshop 2013 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2013 Build-A-Bear Workshop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Since my first day at Build-A-Bear Workshop, Inc. in June 2013, I could tell this
was a special company. From the gracious passing of the baton from the dynamic
founder, Maxine Clark, after 16 years at the helm, to the employee passion for
the brand, it is clear that this is a company with heart.
As you may know, “heart” has been an
important part of the company since its
very beginning. The now iconic Heart
Ceremony that occurs at the “Stuff Me”
station in all of our stores around the world
has been a part of the creation of more than
125 million furry friends — and certainly
even more smiles.
That heart has taken this company from
a spark of an idea in 1997 to a $400 million
dollar business in less than a decade. Heart
has made the brand a household name that
immediately conjures up great memories
for kids of all ages. And, heart has given
this organization the tenacity to fight
through the early days of a turn-around
in a tough economy.
In 2013, we stayed true to our stated
three-pronged strategy:
1) Optimizing our real estate,
2) Resetting our consumer value
equation and,
3) Rationalizing expenses.
I am encouraged by the progress in the year,
delivering four consecutive quarters of
improved operating results. Our annual
consolidated comparable store sales
increased by 5.1%, retail gross margin
expanded by 220 basis points and we had
a $13 million shift in profitability with
adjusted net income of $3 million from
an adjusted net loss of $10 million in 2012.
With this momentum, the strength of the
brand and the emerging path to sustainable
long-term profitability for retail, I believe we
have a tremendous opportunity to expand
our business model.
We have the opportunity to see our strong
brand through a fresh set of eyes, the way our
consumers do as we attain skills sets that
will allow us to monetize the existing brand
equity via new profit and revenue streams.
This next step in our plan will, no doubt,
take heart — but that is something I know
we have.
As we turn the page to 2014 and beyond,
I would like to thank our board, in particular
Mary Lou Fiala, our non-executive chair,
and, of course, Maxine, for their support and
guidance. I would also like to say “thank-
you” for the years of service that Lou Mucci
and Ginger Kent have provided the company
as board members, as they will be stepping
down from their positions this year. Finally,
I would like to extend my appreciation to
our associates, partners and investors. Your
passionate commitment to the Build-A-Bear
brand and business is key to our success.
Our objective is to continue with our overall
strategies, to deliver sustainable long-
term profitability and, thereby, increase
shareholder value throughout the fiscal
year. Because of our strong plan and strong
brand, we are optimistic about our outlook
for fiscal 2014 and beyond.
Best Regards,
Sharon Price John
Chief Executive Officer
LETTER TO SHAREHOLDERS
BUILD- A-BEAR WORKSHOP, INC. 2013 ANNUAL REPORT 1