Bulletin
Investor Alert

New York Markets Close in:

Market Pulse Archives

June 2, 2020, 11:06 a.m. EDT

Build-A-Bear's high-touch store environment could make coronavirus recovery difficult

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Build-A-Bear Workshop Inc. (BBW)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tonya Garcia

Build-A-Bear Workshop Inc. /zigman2/quotes/206558798/composite BBW +0.49% could run into challenges as it begins to reopen stores due to their high-touch nature, GlobalData Retail says. "There is a question mark over how confident parents will feel in bringing children to a shop where there are so many things to touch and where the 'production process' means they must linger," wrote Neil Saunders, managing director of GlobalData Retail. "On top of this, at peak times, social distancing will limit the volume of customers stores can handle." Build-A-Bear has more than 500 stores around the world; the company expects to have 35 open by the end of this week. GlobalData notes the improvements to the e-commerce business, but says it doesn't replace the in-store experience, "which is the company's main selling tool and point of differentiation." Build-A-Bear reported a first-quarter loss of $21.2 million, or $1.42 per share, after net income of $1.2 million, or 8 cents per share, last year. Revenue totaled $46.6 million, nearly halved from $84.4 million last year. At the end of the first quarter, Build-A-Bear had $21.9 million in cash and equivalents with no borrowings from its revolving credit facility. Build-A-Bear stock is down 2.5% in Tuesday trading and has slumped nearly 33% for the year to date. The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.32% is down 5.3% for 2020 so far.

/zigman2/quotes/206558798/composite
US : U.S.: NYSE
$ 2.07
+0.01 +0.49%
Volume: 36,495
July 13, 2020 2:50p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$31.91 million
Rev. per Employee
$80,139
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,195.25
+10.21 +0.32%
Volume: 1.83B
July 13, 2020 3:13p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.