Build-A-Bear Workshop, Inc. Issues Preliminary Sales and Adjusted Pre-Tax Earnings Expectations Ahead of Presentation at ICR XChange

Build-A-Bear Workshop
Published: January 14th, 2014

Fiscal Year 2013 Consolidated Comparable Store Sales Increase 5.1%
Fourth Quarter 2013 Pre-Tax Income Expected in a range of $2.0 million to $5.0 million

ICR XChange 2014

ST. LOUIS - January 13, 2014 - (BUSINESS WIRE) - Build-A-Bear Workshop, Inc. (NYSE:BBW), an interactive entertainment retailer, today issued preliminary sales and guidance for adjusted pre-tax operating results for the fourth quarter and fiscal year 2013 ended December 28, 2013 in conjunction with its presentation at the 16th Annual ICR XChange Conference.

On a preliminary basis, for the Fourth Quarter (13-weeks ended December 28, 2013) the Company expects:

Consolidated net retail sales of approximately $105.0 million, while operating 28 fewer stores at quarter’s end compared to $116.1 million in the fiscal 2012 fourth quarter;
Consolidated comparable store sales to decrease 2.2%, including a 2.8% decline in North America and a 0.1% decline in Europe;
Total revenues of approximately $107.0 million compared to $118.2 million in the fiscal 2012 fourth quarter;
Pre-tax income in the range of $2.0 million to $5.0 million compared to a pre-tax loss of $34.5 million in the 2012 fourth quarter; and
Adjusted pre-tax income after charges in the range of $4.0 million to $7.0 million compared to adjusted pre-tax income of $3.1 million in the 2012 fourth quarter

On a preliminary basis, for the 2013 Fiscal Year (52-weeks ended December 28, 2013) the Company expects:

Consolidated net retail sales of approximately $372.0 million, while operating 28 fewer stores at year’s end compared to $374.6 million in the 2012 fiscal year;
Consolidated comparable store sales to increase 5.1%, including a 5.7% increase in North America and a 2.9% increase in Europe;
Total revenues of approximately $378.0 million compared to $380.9 million in fiscal 2012;
Pre-tax loss in the range of $2.0 million to $5.0 million compared to a pre-tax loss of $48.4 million in the 2012 fiscal year; and
Adjusted pre-tax income after charges in the range of $1.0 million to $4.0 million compared to an adjusted pre-tax loss of $10.3 million in the 2012 fiscal year

The Company noted that its revenue, sales and profit expectations are estimated and preliminary and subject to quarter and year-end closing adjustments. As the Company has not completed its quarter and year-end fiscal close nor the audit of its 2013 financial statements, the revenue, sales and profit expectations presented in this press release may change.

Sharon Price John, Build-A-Bear Workshop’s Chief Executive Officer commented, "We entered 2013 in the midst of a multi-year turnaround plan and have made solid progress toward our goal of returning to sustainable, long-term profitability. Our three key strategies of optimizing our real estate, resetting the consumer value equation and rationalizing our expense structure have led to increased consolidated comparable store sales and improved profitability. Our North American store productivity has improved by approximately 9% to $380 per square foot. Most importantly, we are expecting fiscal 2013 pre-tax income after charges in the range of $1 to $4 million, an improvement from an adjusted pre-tax loss of $10.3 million in fiscal 2012.

In the fourth quarter, in a highly promotional environment, we held steady to our strategies and focused on improving the profitability of our sales," Ms. John continued. "We are expecting pre-tax income after charges to be in the range of $4.0 million to $7.0 million for the fourth quarter. This represents an increase in total profit as well as an improvement in adjusted pre-tax income as a percent of total revenues. After a slow November, comparable store sales increased in December and we had higher gift card sales for the quarter.

We are building on the December momentum and growth in gift cards with a positive start to 2014 further indicating that our strategies are on track to continue to drive us towards our stated objective. I believe we will continue to leverage the strength of the Build-A-Bear Workshop brand and build on our core competencies to increase shareholder value throughout this fiscal year."

The Company is scheduled to present at the 16th Annual ICR XChange conference held at the Grand Lakes Resort in Orlando, Florida on Tuesday, January 14, 2014 at 9:00 a.m. EST. The presentation will be broadcast over the Internet and can be accessed at the Company’s investor relations Web site, http://IR.buildabear.com. The presentation is expected to conclude by 9:25 a.m. EST. A replay of the broadcast will remain on the Company’s Web site for one year.

About Build-A-Bear Workshop, Inc.

Build-A-Bear Workshop, Inc. is the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. There are more than 400 Build-A-Bear Workshop stores worldwide, including company-owned stores in the U.S., Puerto Rico, Canada, the United Kingdom and Ireland, and franchise stores in Europe, Asia, Australia, Africa, the Middle East, Mexico and South America. Founded in St. Louis in 1997, Build-A-Bear Workshop is the leader in interactive retail. Brands include make-your-own Major League Baseball® mascot in-stadium locations, and Build-A-Dino® stores. Build-A-Bear Workshop extends its in-store interactive experience online with its award winning virtual world Web site at bearville.com®. The company was named to the FORTUNE 100 Best Companies to Work For® list for the fifth year in a row in 2013. Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $380.9 million in fiscal 2012. For more information, call 888.560.BEAR (2327) or visit the company's award-winning Web site at buildabear.com®.

Forward-Looking Statements

This press release contains forward looking statements that involve risks and uncertainties and the Company’s actual results may differ materially from the results discussed in the forward-looking statements. These risks and uncertainties include, without limitation, those detailed under the caption "Risk Factors" in the Company’s annual report on Form 10-K for the year ended December 29, 2012, as filed with the SEC, and the following:

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