Beruflich Dokumente
Kultur Dokumente
CEO
Forward looking and cautionary
statements
This presentation contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal
securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial
performance. We generally identify these statements by words or phrases such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “intend,” “predict,” “future,” “potential” or “continue,” the negative or any derivative of these terms and other
comparable terminology. Forward-looking statements are based on current expectation and assumptions that are subject to risks and
uncertainties which may cause results to differ materially from the forward-looking statements. We undertake no obligation to update or
revise publicly any forward-looking statements, whether because of new information, future events or otherwise. Risks and uncertainties
to which our forward-looking statements are subject include: (1) general global economic conditions may decline, which could lead to
disproportionately reduced consumer demand for our products, which represent relatively discretionary spending; (2) customer traffic may
decrease in the shopping malls where we are located, on which we depend to attract guests to our stores; (3) we may be unable to
generate interest in and demand for our interactive retail experience, or to identify and respond to consumer preferences in a timely
fashion; (4) our marketing and on-line initiatives may not be effective in generating sufficient levels of brand awareness and guest traffic;
(5) we may improperly obtain or be unable to adequately protect customer information in violation of privacy or security laws or customer
expectations; (6) we may be unable to generate comparable store sales growth; (7) we may be unable to effectively operate or manage
the overall portfolio of our company-owned stores; (8) we may be unable to renew, renegotiate or replace our store leases, or enter into
leases for new stores on favorable terms or in favorable locations, or may violate the terms of our current leases; (9) we may not be able
to operate our international company-owned stores profitably; (10) the availability and costs of our products could be adversely affected by
risks associated with international manufacturing and trade, including foreign currency fluctuation; (11) our products could become subject
to recalls or product liability claims that could adversely impact our financial performance and harm our reputation among consumers; (12)
we may lose key personnel, be unable to hire qualified additional personnel, or experience turnover of our management team; (13) we are
susceptible to disruption in our inventory flow due to our reliance on a few vendors; (14) we may be unable to effectively manage our
international franchises or laws relating to those franchises may change; (15) we may fail to renew, register or otherwise protect our
trademarks or other intellectual property; (16) we are subject to risks associated with technology and digital operations; (17) we may suffer
negative publicity or be sued due to violations of labor laws or unethical practices by manufacturers of our merchandise; (18) we may be
unable to operate our company-owned distribution center efficiently or our third-party distribution center providers may perform poorly; (19)
high petroleum products prices could increase our inventory transportation costs and adversely affect our profitability; (20) our plans to
leverage the Build-A-Bear brand to drive strategic expansion may not be successful; (21) our market share could be adversely affected by
a significant, or increased, number of competitors; (22) we may suffer negative publicity or negative sales if the non-proprietary toy
products we sell in our stores do not meet our quality or sales expectations; (23) poor global economic conditions could have a material
adverse effect on our liquidity and capital resources; (24) fluctuations in our quarterly results of operations could cause the price of our
common stock to substantially decline; and (25) we may be unable to repurchase shares of our common stock at the times or in the
amounts we currently anticipate or the results of the share repurchase program may not be as beneficial as we currently anticipate. For
additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our
most recent reports on Form 10-K, Form 10-Q and Form 8-K.
Background: BBW
• Founded in 1997, as a specialty
retailer to “make-your-own stuffed
animals”
• 2004 IPO
- Post IPO 22% CAGR and double-
digit EBITDA thru 2007
- 2007 saw highest revenue:
$474M
- 2008 was the beginning of a
multi-year contraction
• Currently in ~400 locations in 15
countries including: 2013
• 330 owned and operated
• 70+ international franchise
Marked the Beginning of a
stores
Corporate Turnaround
• Over 3,500 employees
Store counts are as of end of fiscal year 2015 (January 2, 2016),
BUILD-A-BEAR 2016 includes traditional and non-traditional stores
Background: Struggling
Pre-2013: Multi-Year retail Trend
Negative business
Declining Retail Failing Strategy Trend of Unprofitablity
1. Return to
Profitability
2. Sustain
Profitability
BUILD-A-BEAR 2016
CUMULATIVE
CUMULATIVERESULTS
RESULTS2013-2015:
2012-2015:
Adjusted Net Income (Loss)*
BBW ~$17M
Profit
Improvement
~720bps
(based on adjusted net income as a percent of revenue)
($10M)
53 wks Prelim
2012* 2013* 2014* 2015*
(on a similar topline) Revenue $381M $379M $392M $378M
(with 6% fewer stores & Total
351 323 324 330
11% less square footage) Stores #
*Adjusted Net Income/Loss excludes mngmt transition and store closing costs, asset & store impairment, goodwill
impairment & deferred tax asset valuation allowance; 2015 results are preliminary and may change; $17.25M is the
BUILD-A-BEAR 2016 mid-point of the projected range
CUMULATIVE
CUMULATIVERESULTS
RESULTS2013-2015:
2012-2015:
BBW 2015 2015
Retail Gross Margin NA dollars
per transaction**
$44.10
47% *
HIGHEST EVER
2015
NA units
(820 bps point per transaction**
improvement versus 2012) 3.95
HIGHEST
(highest since 2006) since 2008
(only 3 unprofitable NA
store versus 61 in 2012)
BUILD-A-BEAR 2016 *2015 results are preliminary and may change
CUMULATIVE RESULTS
CUMULATIVE RESULTS 2013-2015:
2012-2015:
• Margin Expansion
• Increases in
Three Average
Consecutive Transaction Value
Years of • Improved
Profitability
Improvement
• Positive
Consolidated
Same Store Sales
BUILD-A-BEAR 2016
All While Fundamentally Changing the Company
Developed New Strategy
• Re-orged with new leadership
team including:
CFO, COO, CMO, CPO
• Evolved 50% of the Board
• Updated circa pre-2008 IT, Digital
and POS infrastructure
• Instituted more efficient, data-
driven processes
• Launched new brand look
• Elevated and expanded powerful
partner relationships
FORTUNE
“100 Best Companies to Work For”
7th consecutive year
BUILD-A-BEAR 2016
Objectives
1. Return to
Profitability
2. Sustain
Profitability
BUILD-A-BEAR 2016
Strategy?
BUILD-A-BEAR 2016
Objectives
1. Return to
Profitability
2. Sustain
Profitability
3. Drive Profitable
Growth
BUILD-A-BEAR 2016
Strategy
DIVERSIFY
THE BUSINESS MODEL
BRAND
• Global
• Multi-generational
• Emotional
“to maximize our potential,
• Trusted we must pivot from a retailer
• Extendable that built a powerful brand
to a BRAND company that’s
• Updated more than a retailer”
BUILD-A-BEAR 2016
Strong Brand:Balanced Appeal and Seasonality*
Consumer Age Distribution Consumer Gender Distribution Revenue by Quarter**
12%
26% 23%
31%
22%
15% 21%
25%
22% 25%
12%
0-2 3-5 6-8 9-12 Teen + 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Build-A-Bear
Aided Brand Awareness
Build-A-Bear
BRAND ADVOCACY
Strategic Investment
1 2 3 4
Diversify and Add Locations
Diversify and Add Categories
Diversify and Add Consumers
MONETIZE THE BRAND
BUILD-A-BEAR 2016
Strategy
DIVERSIFY THE BUSINESS MODEL
Global Owned Outbound
& Operated International Brand Wholesale
Retail + Franchising Licensing & and Corporate
Enterprise Entertainment Sales
Selling
1 2 3 4
MORE PLACES
MORE PRODUCT
MORE PEOPLE
MONETIZE THE BRAND
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PLACES
Beyond updating the look, we
researched and created the new
store design with an objective to:
• optimize spatial planning
• improve productivity
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PLACES
Discovery Store
“Secret Weapon” – the STUFFER
- Lease line “theater”
- Front/center position opens up
merchandising wall space
- Faster fill rate and extra nozzle
has increased our peak
capacity by 60%
We expect to have
45-55 new and/or remodeled
Discovery Stores
by the end of 2016
including 4 flagships
in multiple countries
BUILD-A-BEAR 2016
EXPANSION:
EXPANSION:2016
2016and
andBeyond
Beyond
MORE PLACES
• A Discovery Store flagship in
金泰迪工作室
Copenhagen, Demark at Tivoli
Gardens (remodel)
• New Discovery Store flagship in
Shanghai, China
ENTERPRISE SELLING
- Starting in 1st half 2016
- In-store, On-line, Mobile visibility
EXPERIENTIAL “Wholesale”
- Re-building Rainforest Café and T-Rex
Café relationship with Landry’s
- New Carnival Cruise lines relationship
- BBW expected to be “on-board” in 2016
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PRODUCT
Drove additional Wholesale
business with:
• COSTCO holiday gift set pallet
program was successful, plans to
expand in 2016
Secured 10 out-bound branded 75% of our best guest surveyed
licensed agreements in a wide are interested in Build-A-Bear
variety of consumer categories, branded consumer products*
mostly launching in 2016
including:
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PRODUCT
Since 4Q 2014, we have been
introducing Intellectual Properties
that include back stories, apps,
music, videos and games to drive
“Play beyond the Plush” with:
- Honey Girls
- Merry Mission
- Promise Pets
Contributed to almost $60M in
lifetime revenue and ~10M total
digital interfaces
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PEOPLE
Our Traditional Licensing
approach drives
Core Consumer sales
Affinity Collectibles Entertainment Sports Fashion Gifts
BUILD-A-BEAR 2016
EXPANSION: 2016 and Beyond
MORE PEOPLE
The Collectible, Gifting and Teen+
Consumer is generally less price
sensitive, more likely to shop on-
line and over-indexes with key
licenses like:
Minions
Star Wars
Pikachu
Toothless
BUILD-A-BEAR 2016
2016 Expectations
Transitioning from Sustained
Profitability to Profitable Growth
Revenue Growth in Mid-Single Digits
Continued Profit Growth
Increase in Capital Spend
Continue Share Repurchase Program
Investment alignment with Strategy
BUILD-A-BEAR 2016
2016: Projected Revenue
Total Revenue Growth in Mid-Single Digits
Driven by:
• Organic comp growth in existing stores
• Accelerated comp in remodeled stores
• Volume from ~10 new permanent stores* net of closures
• Double-digit growth in Digital (Mobile + Ecomm)
• Enterprise Selling opportunity
• Benefit from continued strategy of driving IP and Licensing via
a consumer segmentation strategy coupled with elevated
product/marketing integration
$30M 25%
IT/Systems Upgrades
“Play beyond the Plush”/IP
Infrastructure &
Platforms for new
revenue streams
BUILD-A-BEAR 2016
2016: Intended use of Capital
Share Repurchase Plan
Build-A-Bear
1954 Innerbelt Business Center Dr.
St. Louis, MO 63114
www.buildabear.com