Build-A-Bear Workshop, Inc. anticipates that eCommerce demand for the fiscal 2020 fourth quarter will jump 90 percent to 100 percent in contrast to the fiscal 2019 fourth quarter, according to a Monday (Jan. 11) announcement.
Build-A-Bear also anticipates total revenues of between $88 million and $92 million, in contrast to $104.6 million in the fiscal 2019 fourth quarter. The firm said it experienced a “significant reduction” in store traffic in the nine weeks leading up to Jan. 2, 2021, as a result of local pandemic restrictions.
Moreover, the company noted that retail stores were affected by fewer operating hours in addition to restrictions on store capacity due to government orders.
“We continue to focus on accelerating our strategy, including initiatives to drive our digital transformation, evolve our retail channels and capabilities and maintain solid financial health and liquidity,” Build-A-Bear Workshop President and Chief Executive Officer Sharon Price John said in the announcement.
John noted that the company’s workforce has evolved with the ongoing changes in its operating environment, “while leveraging the power and consumer affinity for our brand.”
The company reported that earnings before interest and taxes (“EBIT”) are anticipated to be between $4 million and $6 million, in contrast to $7.6 million in the fiscal 2019 fourth quarter. It also anticipates cash and cash equivalents at quarter-end to be in the range of $32 million and $37 million.
“We expect to begin fiscal 2021 with an improved cash position compared to the prior year, as we remain focused on expense management and preserving liquidity,” John said.
The company said it is set to present at the 23rd Annual ICR Conference on Monday (Jan. 11) at 3:30 p.m. Eastern Time.
On Sept. 1, Build-A-Bear registered a 299 percent rise in eCommerce sales in Q2, as stores had to stay closed for part of the time during the pandemic. The company noted that the overall inventory at the end of the quarter was $55.5 million.
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