E-commerce demand increased by 104% year-on-year! BBW in the United States accelerates digital transformation

Build-A-Bear Workshop ( BBW ), an American plush toy retailer , mainly sells teddy bears and other stuffed animal toys. Its products include a range of styles of plush animal toys, clothing, shoes and accessories for stuffed animals, as well as other toys and novelty items.

The company recently released its quarterly earnings report, saying that even though its operations continued to be adversely affected by the pandemic, its adjusted earnings and sales in the fourth quarter exceeded expectations.

In the fourth quarter, BBW's combined e-commerce demand, or orders generated online that are fulfilled through the company's warehouses or stores, grew 104% from the same period last year.

Sharon Price, BBW CEO, said: “During a year of global turmoil, I am proud of our organization’s ability to respond quickly and make the necessary changes, resulting in a pre-tax profit of $9.2 million in the fourth quarter , an increase of more than 20% year-over-year . Despite the challenges, we were able to accelerate important long-term strategic initiatives, including advancing our digital transformation and rapidly evolving our retail model and capabilities, while managing our financial stability and liquidity. ”

For the full year, BBW's total revenue for the 52 weeks ending January 30, 2021, was $255.3 million, compared to $338.5 million the year before, with net retail sales down 23% to $249.2 million and store open days down 33.4%. For the full year, e-commerce demand increased 133% compared to fiscal 2019.

Sharon Price said: "As we begin our 2021 financial year, our business continues to be negatively impacted by the pandemic, however e-commerce demand continues to be strong across the board, driven by Valentine's Day."

As the world gets vaccinated, BBW said it believes consumer-related spending will increase, especially driven by family reunions and an increase in its products in the form of gifts.

And, BBW will accelerate its digital transformation in 2021, which includes using more data analytics, marketing on social media sites like Facebook, and expanding online streaming events. Another initiative is to rapidly develop its retail capabilities. BBW is creating a Build-a-Bear 3D section on its website, which will promote e-commerce growth.

USA

Build-A-Bear Workshop

Plush Toys