Build-A-Bear Workshop is having a record-setting year.
The largely mall-based retailer of customizable, “furry friends” reported that first half revenues for 2022 hit $213.3 million, a 17.1% spike versus the first half of last year. The total includes $100.7 million in sales from the second quarter, a 6.3% gain over Q2 2021.
“We are pleased to have delivered a strong fiscal 2022 second quarter which contributed to record-setting levels for total revenues and profitability for the fiscal first half, following the most profitable year in our company’s history,” says Build-A-Bear Workshop President and CEO Sharon Price John. “We believe that our strategic plan which capitalizes on our powerful brand, executed with discipline and agility, is the primary driver of our sustained profitable growth.”
Build-A-Bear joins many companies in the toy and retail industries in facing tough and/or skewed comps as a result of doing business in the pandemic era. While its digital sales fell 2.3% in the first half of 2022 compared to 2021, digital demand is still 180% higher than 2019. Consolidated net retail sales for the entire business hit $208.8 million, an increase of 15.7% compared to $180.5 million in the first six months of fiscal 2021.
According to Price John, Q3 is already looking good for the company despite the business challenges faced throughout 2022.
“Thus far in the third quarter, our overall sales trends and retail traffic patterns have continued to be positive, and while we are mindful of the macro-economic uncertainties, we have demonstrated an ability to remain nimble and adapt our resilient and more diversified business model to navigate challenging environments,” she says. “As we look forward to the balance of the year and the all-important holiday season, we believe we are well-positioned to achieve our expectations and are reaffirming our annual guidance.”
Build-A-Bear Workshop continues to open new stores in the U.S. and has found success in a third-party retail model that places Build-A-Bear Workshop locations inside resorts and other retailers. It has relationships with FAO Schwarz, Carnival Cruise Lines, Great Wolf Lodge Resorts, Landry’s and Beaches Family Resorts.
On Build-A-Bear’s Q2 earnings call this morning, Price John revealed future plans for the brand, including an entry into the metaverse with an NFT collection celebrating the company’s 25th anniversary. Additionally, she says that the company “recently engaged with a digital game development firm to bring a Build-A-Bear experience to a leading gaming platform.”
Looking ahead, Build-A-Bear Workshop will continue releasing licensed products tied to popular franchises, including the upcoming launch of The Lord of the Rings on Amazon Prime. Additional products include matching pajamas for the entire family and its first-ever pet toy collection, which will debut this holiday season in more than 1,600 PetSmart locations.
