Build-A-Bear Workshop 2014 Annual Report Download - page 3

"Build-A-Bear Workshop has the potential to be MORE than it has ever been."
In reflecting on my first full year as CEO,
I am inspired by this company’s ability to
quickly adapt to change and return to
profitability for the first time since 2010.
Why were we able to get an engrained
organization to think dierently, act
dierently and ultimately achieve vastly
dierent results in a little over a year?
I believe the answer lies in understanding
the increased level of dedication that can
be called upon when the mission is about
a beloved brand versus “just” a business.
Our brand is unique. It evokes positive
emotions and special memories, not only
for the millions of guests who have made
furry friends over the last 17 years, but
also for our valued associates.
Our associates believe that there is “a
little more heart” in the world because of
Build-A-Bear. So, when change became
necessary, the question was not about
“why” we needed to change but about
“what” we needed to do. That’s where
our 3-pronged strategy came into focus:
1) Optimizing real estate, 2) Resetting
the consumer value equation,
and 3) Rationalizing expenses.
Evangelizing and staying true to the
disciplined execution of this strategy
enabled us to gain commitment and
deliver our goal of sustained profitability.
Ultimately, the organization’s hard work is
reflected in our results. And, now that we
have achieved eight consecutive quarters
of improved operating performance, it is
once again time to evolve.
Our brand resonates with a broad base
of consumers and consistently posts
strong numbers on metrics such as
recognition, loyalty and advocacy.
Harnessing this brand power will allow
us to extend beyond the confines of
traditional retail. Simply put, Build-A-
Bear Workshop has the potential to be
MORE than it has ever been. We believe
we can leverage our brand equity into
new revenue streams by evolving our
business model and executing our
“MORE X 4” strategy:
1. MORE Places
Open new and non-traditional retail
locations domestically and
internationally
2. MORE People
Grow the core and build new
consumer segments
3. MORE Products
Drive branded stories and enter
new categories
4. MORE Profitability
Focus on continued margin expansion
while driving sales
As you know, shifts in business models
often come in “fits and starts” but this
company has proven itself both worthy
of and ready for challenges. Over the
past year, we have made changes to
strengthen our senior management
team by adding new skills and talent in
order to drive our evolved plans ahead.
We are undoubtedly a company with
heart and although it may take MORE
heart than we have previously had to
muster to move to the next level – I am
confident that we have the plans and
the team to succeed.
I would like to extend my gratitude to
our shareholders and, in particular, to
Mary Lou Fiala, our non-executive chair,
and to Maxine Clark, the founder of
Build-A-Bear Workshop, for their on-going
support and guidance. I would also like to
express my appreciation to our partners
and associates including Tina Klocke, our
first CFO, who recently left the company
after 17 years of dedicated service.
We are optimistic about the future of this
very special brand and believe we have
the strategy, the leadership team and
the organization in place for this
company to be MORE.
Best Regards,
Sharon Price John
Chief Executive Ocer
LETTER TO SHAREHOLDERS
BUILD-A-BEAR WORKSHOP, INC. 2014 ANNUAL REPORT 1