Build-A-Bear Workshop, Inc. (BBW): history, ownership, mission, how it works & makes money

A Brief History of Build-A-Bear Workshop, Inc. (BBW)

Foundation and Early Years

Build-A-Bear Workshop, Inc. was founded in 1997 by Maxine Clark. The first store opened in St. Louis, Missouri, and quickly garnered attention for its unique concept of personalized stuffed animals.

Expansion and Growth

By the end of 2000, Build-A-Bear Workshop had opened 60 stores across the United States. In 2004, the company went public, raising approximately $50 million.

Financial Performance

Global Presence

As of 2023, Build-A-Bear Workshop operates over 400 locations globally, including stores in Canada, the UK, and parts of Asia. The company has expanded its e-commerce platform, reaching a broader audience.

Innovative Offerings

• In 2013, the company launched a "Build-A-Bear Workshop" mobile app.
• Introduced licensed characters, including partnerships with Disney and Warner Bros.
• In 2020, the brand introduced the “Bears of Hope” collection to address the pandemic's emotional needs.

Recent Developments

In 2022, Build-A-Bear Workshop announced a collaboration with Netflix for themed bears based on popular shows. The company's stock price as of October 2023 is approximately $22.75, with a market capitalization around $298 million.

Community Engagement

Build-A-Bear Workshop has actively participated in charitable initiatives, contributing over $4 million to various causes since its inception. The company promotes inclusivity and community values through various events and partnerships.

A Who Owns Build-A-Bear Workshop, Inc. (BBW)

Ownership Structure

The ownership of Build-A-Bear Workshop, Inc. is divided among various stakeholders, including institutional investors, individual shareholders, and company executives. As of the latest data, the largest shareholders are:

• The Vanguard Group, Inc. - approximately 10.4% ownership
• BlackRock, Inc. - approximately 9.1% ownership
• Wellington Management Company, LLP - approximately 7.3% ownership
• Directors and Executive Officers - approximately 5% ownership collectively

Market Capitalization

As of October 2023, the market capitalization of Build-A-Bear Workshop, Inc. stands at approximately $490 million. This reflects the financial health and market perception of the company in the retail sector.

Stock Performance

Build-A-Bear Workshop trades on the New York Stock Exchange under the ticker symbol BBW. Recent stock performance data includes:

• 52-week range: $10.13 - $20.99
• Current stock price (as of October 2023): $16.50
• Year-to-date return: +30%

Recent Financial Performance

For the fiscal year ending 2022, Build-A-Bear Workshop reported the following financial metrics:

Insider Trading Activity

Recent insider trading activities reflect the confidence of executives in the company’s future. Notable transactions include:

• CEO Sharon Price John purchased 5,000 shares on September 15, 2023, valued at approximately $80,000
• CFO and COO Zane S. W. B. purchased 2,000 shares on October 1, 2023, valued at approximately $32,000

Retail Presence

Build-A-Bear Workshop operates a significant number of retail locations:

• Total stores worldwide: 400+
• Countries with stores: United States, Canada, United Kingdom, Ireland, France, Germany, and more

Future Outlook

Analysts project an optimistic future for Build-A-Bear Workshop with expected revenue growth of approximately 10% annually over the next five years, driven by expanding digital sales and international presence.

Build-A-Bear Workshop, Inc. (BBW) Mission Statement

Corporate Mission

The mission statement of Build-A-Bear Workshop, Inc. focuses on providing a unique and interactive experience for guests of all ages. The company aims to bring a smile to the faces of consumers by allowing them to personalize and create their own stuffed animals.

Core Values

• Creativity and Personalization
• Community Engagement
• Fun and Innovative Experiences
• Commitment to Quality
• Customer-Centric Approach

Current Financial Overview

As of the end of the fiscal year 2022, Build-A-Bear Workshop reported total revenue of approximately $445.4 million. The net income for the same period was around $36.5 million, reflecting a significant year-over-year increase.

Market Position

Build-A-Bear Workshop operates over 400 stores worldwide, with a substantial presence in the United States, Canada, and Europe. In 2022, the company saw a 20% increase in comparable sales compared to the previous year, showcasing its resilience in the market.

Table: Key Financial Metrics (2022)

Customer Engagement Initiatives

Build-A-Bear Workshop invests heavily in customer engagement through various initiatives, including:

• Birthday Club for children
• Seasonal events and promotions
• Social media campaigns
• Collaborations with popular franchises

Recent Developments

In 2023, the company launched a new product line featuring eco-friendly materials, responding to increasing consumer demand for sustainable options. This initiative aligns with the company's mission of providing quality and memorable experiences.

Conclusion on Mission Alignment

Build-A-Bear Workshop's mission statement is intricately linked to its financial performance, consumer engagement, and product innovation strategy, contributing to its growth in a competitive market environment.

How Build-A-Bear Workshop, Inc. (BBW) Works

Business Model

Build-A-Bear Workshop, Inc. operates a unique retail model that combines interactive experiences with customizable products. Customers can create their own stuffed animals in-store, choosing from a variety of styles, clothing, and accessories.

Revenue Streams

• Retail Sales: Primary revenue source coming from the sale of teddy bears and other stuffed animals.
• Online Sales: E-commerce operations have expanded significantly, with online sales contributing to overall revenue.
• Licensing: Collaborations with popular brands and franchises for themed bears and accessories.

Financial Performance

In the fiscal year 2022, Build-A-Bear Workshop reported:

• Total Revenue: $416.8 million
• Net Income: $27.2 million
• Earnings Per Share (EPS): $2.16

Store Locations

As of the end of fiscal year 2022, Build-A-Bear Workshop operated:

• Brick-and-Mortar Stores: 400 locations globally
• International Presence: Stores in 12 countries

Customer Experience

Build-A-Bear focuses on providing an engaging customer experience through:

• In-Store Events: Birthday parties, camps, and workshops
• Online Customization: Users can create and design their bears online before purchasing

Marketing Strategies

• Social Media Engagement: Increased presence on platforms like Instagram and Facebook
• Seasonal Promotions: Special offers during holidays and events

Product Offerings

Build-A-Bear features a vast array of products:

Performance Metrics

Key performance indicators for Build-A-Bear include:

• Same-Store Sales Growth: 20% increase year-over-year in 2022
• Customer Loyalty Program: Over 3 million members

Financial Ratios

Selected financial ratios as of 2022:

Challenges and Opportunities

Build-A-Bear faces various challenges and opportunities:

• Challenges: Competition from e-commerce, economic downturns affecting discretionary spending
• Opportunities: Expanding online presence, new product lines, international expansion

How Build-A-Bear Workshop, Inc. (BBW) Makes Money

Retail Sales

Build-A-Bear Workshop generates a significant portion of its revenue through retail sales in its stores. In fiscal year 2022, the company reported retail sales of approximately $346 million.

E-Commerce

The e-commerce segment has become increasingly important, contributing around $69 million to the total revenue in 2022. This figure represents a growth of approximately 25% compared to the previous year.

Franchise Operations

Franchise operations also provide a revenue stream, with approximately $15 million earned through franchise fees and royalties in 2022.

Product Sales

Product sales include the sale of customized stuffed animals, clothing, and accessories. The average transaction value in stores is approximately $30.

Event-Based Revenue

Build-A-Bear Workshop also makes money through hosting events, such as birthday parties, which can generate upwards of $400 per event. In 2022, this segment brought in approximately $10 million.

Licensing and Partnerships

Licensing deals, such as those with major brands for themed product lines, contributed about $5 million to BBW’s revenue in 2022.

International Operations

Internationally, Build-A-Bear operates 59 stores in various countries, contributing an estimated $20 million to overall revenue.

Cost Structure

In 2022, Build-A-Bear's cost of goods sold (COGS) represented approximately 60% of total revenue, totaling around $265 million. Operating expenses were about $70 million.

Marketing and Promotions

Marketing and promotional strategies have proven effective, with BBW investing around $15 million in marketing in 2022. The return on investment is high, with average store traffic increasing by 15% during promotional periods.

Financial Performance Overview

According to the latest financial statements, Build-A-Bear Workshop reported a net income of approximately $20 million for the year ending December 31, 2022. This figure represents a year-over-year increase of 10%.