Build-A-Bear Workshop 2012 Annual Report Download - page 8

Canada, the United Kingdom and
Ireland. In the year, we impaired
the goodwill associated with our
UnitedKingdom business in its
entirety, but this does not change
our long-term outlook for this
strategically important business
segment. And while we do not
expect to open more stores in
the UnitedKingdom until we see
improvements in the economy, we
do expect to continue to expand
globally through new and existing
franchisees as we move forward.
6. Improve cost efficiencies —
During the year, we achieved cost
savings of approximately $7.5 million.
These savings were used to support
sales-driving marketing initiatives and
were partially offset by product cost
increases. We continue to adjust
our expense structure to reflect the
smaller store base that we will have
in the future.
Looking Ahead
Looking forward, we remain
cautious on the overall environment,
particularly in Europe. However, there
are encouraging signs that overall
the economy is beginning to stabilize
and that Build-A-Bear Workshop is
well positioned to capitalize on the
business opportunities that lie ahead.
With the benefit of hindsight, it is
clear that our concept was over
expanded, particularly in light of
the downturn in the global economy.
However, despite several difficult
comparable store sales years, the
vast majority of our stores still have
strong unit level economics. We are
intently focused on right-sizing
our store base, refreshing stores in
our updated design and adjusting
our expense structure to match the
reduced store count. I expect that
Build-A-Bear Workshop will emerge
a smaller, but much healthier and
once again profitable company by
the end of 2014.
Earlier this year, I announced my
plan to retire as Chief Executive Bear
of Build-A-Bear Workshop. When
I founded Build-A-Bear Workshop,
my vision was to redefine retail. I
am proud that 16 years later our
Company has become a favorite
brand of families worldwide and is
THE leading and only international
company providing a “make your
own stuffed animal” interactive retail
experience. I am also very proud
of the more than 110 million furry
friends that have been made in our
stores since our inception that are
touching hearts around the globe.
I regard my role as Founder and
Chief Executive Bear of Build-A-Bear
Workshop as an honor and highlight
of my career. I look forward to
continuing to work as a member
of our Board once my successor is
named. I am confident that the current
management team has the experience
and qualifications to deliver our
strategic objectives and leverage
our enormous brand equity to reach
new heights in sales and profitability
in the long term.
I would like to thank our associates
who once again were recognized
when FORTUNE Magazine named
our Company as one of the 100 Best
Companies to Work For® in the
UnitedStates for the fifth year in a
row. I want to thank our Guests for
sharing your smiles, your stories and
your love of our great brand and am
especially grateful for the personal
friendships I have formed along the
way. I want to thank our Board of
Directors for your support during this
repositioning stage. And I want to
thank you, our shareholders, for
believing in the heart that is at the
center of everything we do and
continuing to invest in the future
of our Company.
Beary Best Regards,
Maxine Clark
Founder and Chief Executive Bear
March 22, 2013
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110 million furry friends
giving hugs and making smiles
around the world.