Plus   Neg

Build-A-Bear Workshop Lowers FY18 Revenue Outlook - Quick Facts

Build-A-Bear Workshop, Inc. (BBW) on Monday lowered its revenue outlook for fiscal year 2018 in conjunction with its presentation at the ICR Conference 2019.

For fiscal 2018, Build-A-Bear Workshop now forecasts total revenues in a range of $335 million to $340 million. Earlier, the company forecast full-year revenue in a range of $340 million to $345 million.

Total revenues were $364.0 million for the recast 53-week period ended February 3, 2018.

The revised full-year revenue outlook is inclusive of the negative impact of $3.9 million due to the adoption of new accounting standards effecting the timing of the recognition of breakage revenue for certain gift cards and the non-occurrence of the prior year benefit of $6.0 million for a 53rd week in revenue.

The company noted that the $9.9 million impact of these two items would adjust total fiscal 2017 recast year revenues to $354.1 million.

Within the company's Direct-To-Consumer segment, total revenues in North America are expected to decline by about 2 percent compared to the adjusted recast 2017 fiscal year. Total revenues in Europe are expected decline in the range of 17 percent to 20 percent compared to the adjusted recast 2017 fiscal year.

Sharon Price John, Build-A-Bear Workshop Chief Executive Officer said, "We believe that fiscal 2018 had several anomalies that converged to negatively impact our business. The shortfall in our year's results are largely attributed to the persistent and significant revenue and profitability challenges in the UK as unresolved issues related to Brexit negatively impacted consumer confidence and currency exchange rates and new privacy laws, known as GDPR, impeded our marketing communications."

The CEO noted that other factors contributing to the lower revenues include a decline in licensed product sales due to significantly fewer family-centric, character-based movies; the continuation of overall declines and changing composition of mall traffic; the closure of a flagship store location that represented over $7 million in North American revenue; liquidation of one of the largest global toy retailers; and a number of accounting and tax changes that negatively affected both top and bottom line results.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Casino operator MGM Resorts International said it was the victim of a data breach in 2019 after a report claimed that the details of more than 10.6 million hotel guests were exposed. Technology website ZDNet reported about the incident late on Wednesday, saying that the personal details of more than 10.6 guests who stayed at MGM Resorts hotels were published on a hacking forum this week. Amid the ongoing troubles with its 737 MAX commercial planes grounding since March 2019, Boeing (BA) has secured a five-year U.S. Air Force contract to sustain and modernize the Global Decision Support System, or GDSS. The financial terms of the deal were not disclosed. The contract was awarded to Tapestry Solutions, part of Boeing Global Services. Reinsurer Swiss Re reported Thursday significantly higher profit in fiscal 2019 driven by higher premiums mainly in property and casualty businesses, despite heavy natural catastrophe losses. The company also said it will propose higher dividend and share buyback of up to 1 billion Swiss Francs. Swiss Re were losing around 4 percent in trading.
Follow RTT