Four units will open in North America, and two in Europe in 2009, as compared to 20 new North American units and five European stores this year. In addition, the company is reassessing its oldest stores.
"Store-lease renewals begin ramping up in 2009 and 2010," said Maxine Clark, Build-A-Bear Workshop chairman and chief executive bear. "This allows us to take a fresh look and our markets and how the market should be restructured. We are deep into this planning with our teams and landlords."
At least one new North American store will open in Puerto Rico, the company's second on the island. Eventually, two or three more units will open there. Despite the slowdown, however, long-term goals remain unchanged.
"We've said that our chain can be 350 stores in North America and 70 in the United Kingdom," Clark said. "That has not changed."
At quarter's end, the company owned 330 stores -- 278 in North America and 52 in Europe. International franchisees owned 58 stores.
Total revenue was $94.7 million, down 6% from last year. Comp-store sales declined 17.9%, with European comp increase of 2.2% only slightly offsetting a 20.5% decline in North American stores. The chain posted a loss of $4.8 million, vs. earnings of $1.6 million last year. The Easter shift into the first quarter this year also affected earnings, the chain said.
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