Build-a-bear Workshop, Inc. · NYSE:BBW
Build-a-bear Workshop — Credit Suisse Consumer and Retail Conference 2006
34 slides from Build-a-bear Workshop's conference presentation, Jun 13, 2006
Slide 1: Credit Suisse Consumer and Retail Conference
Credit Suisse Consumer and Retail Conference June 13, 2006 New York City NOTE: Earnings guidance was reaffirmed as of April 27, 2006 and is not being updated or re-affirmed in this presentation. Maxine Clark Barry Erdos Chairman & Chief President & Chief Executive Bear Operating Officer Bear
Slide 2: The Bear Facts
The Bear Facts Bearemy ® , our huggable mascot This presentation contains "forward-looking statements" (within the meaning of the federal securities laws) which represent the Build-A-Bear Workshop’s expectations or beliefs with respect to future events. These forward-looking statements are subject t
Slide 3: Agenda
Agenda Build-A-Bear Workshop background Growth strategies Strategic initiatives UK acquisition Ohio distribution center Marketing and brand building
Slide 4: UK Acquisition -- The Bear Factory and Amsbra, Ltd.
UK Acquisition -- The Bear Factory and Amsbra, Ltd. Acquisition complete on April 3, 2006 -- Integration on schedule Conversion of Bear Factory stores to Build-A-Bear Workshop stores underway – fifth store converted and reopened in Grosvenor Centre, Chester, England Convert Bear Factory stores to BB
Slide 5: Highly Profitable and Growing
Highly Profitable and Growing Retail-Entertainment Brand Creative Merchandise AND ‘Hands-On’ Experience Numerous Growth Opportunities Powerful Marketing Loyal and Connected Customers Experienced and Talented Management Team Broad Demographic Appeal Highly Productive and Profitable Store Model Proven
Slide 6: Build-A-Bear Workshop Overview
Build-A-Bear Workshop Overview Global leader in interactive retail First store opened 1997 Over 240 stores in North America, Canada and UK Stores opened or scheduled to open in 15 international countries Nearly 39 million furry friends sold More than a toy store – building a powerful entertainment b
Slide 7: Conventional Retail vs Build-A-Bear Workshop
Conventional Retail Build-A-Bear Workshop A Unique Retail-Entertainment Experience Merchandise driven – sell the brand, item, or price Traditional display techniques Appeals to a particular demographic Sales driven through markdowns and promotion Sells the brand experience Highly interactive theme p
Slide 8: Our Associates ARE the Experience
Our Associates ARE the Experience Approximately 80% of returning Guests plan their visit to our store in advance 92% of Guests rated their overall experience the highest or second highest rating
Slide 9: Our Products are the Other Half of the Formula
Our Products are the Other Half of the Formula Offer a well-coordinated fashion merchandise selection of less than 450 SKUs per store Talented in-house product development team Tracks cultural and fashion trends Disciplined test and reorder methodology Cub Advisory Board regularly gives input on new
Slide 10: NEW Friends Joining Us This Summer!
NEW Friends Joining Us This Summer!
Slide 11: Primary target is families with children
Primary target is families with children typically age 3 to 12 Other Guest segments include: Grandparents, aunts and uncles shopping for kids Teen girls 13-17 who bring along boyfriends Child-centric organizations Leisure travelers Special interest collectors 75% girls/25% boys. Avg age of bear owne
Slide 12: Our Guests Come Back
Transactions with Stuffed Animals Animals Registered to Repeat Guests Our Guests Come Back % of All Transactions No Bear: Clothing & Accessories Only % of Transactions to Repeat Guests No Bear: Clothing & Accessories Only Over 60% of all transactions are with a Returning Guest Repeat Guest Factor
Slide 13: Still Growing Strong
Still Growing Strong
Slide 14: Long-Term Growth Strategy Powerful Store Financial Model
Long-Term Growth Strategy Powerful Store Financial Model Numerous growth opportunities Expense Leverage/ Comp Stores New Stores New Initiatives UK/Ireland
Slide 15: A Highly Productive Store Model
A Highly Productive Store Model Mean = $366 Source of other retailers data: Citigroup Build-A-Bear Workshop ® : $602 sales per gross SF in 2004, $615 sales per gross SF in 2005
Slide 16: Superior Store Economic Model
Superior Store Economic Model Stores are profitable in first 12 months Retail sales per gross square foot of $615 in 2005. Strong gross profit margins Store SG&A expense includes approx. 7.5% to 8% marketing expense and 14% to 15% store payroll expense (% of total revenues) Investment per store aver
Slide 17: Number of Stores - U.S. and Canada
Number of Stores - U.S. and Canada New Store Growth Approx. 30 new stores in 2006; about 80% in new markets and 20% in existing markets New stores open with very strong sales, typically above the chain-wide average of $615 per square foot. Expansion plans include both new and existing markets Flexib
Slide 18: Bigger and Better Than Ever
Our stores in Manhattan and the Mall of America are building the Build-A-Bear Workshop brand Bigger and Better Than Ever…
Slide 19: Grow International Franchises
Grow International Franchises Currently have master franchise agreements in 15 countries 19 stores at year end 2005 (Ex. UK) Plan to open up to 20 stores in 2006 Potential of approx. 300 stores Strict control of franchisee format and operations Goal is to have well-capitalized franchisees with retai
Slide 20: Licensed Product Growth
Licensed Product Growth In 2006, focus on approximately 20 core licensing partners Agreements with leading manufacturers to use our brand to develop products for retailers including: Kids’ footwear from Elan- Polo Baskets and treats from Houston Harvest Gift books from Hylas Publishing Craft books f
Slide 21: Develop New Experiential Retail Concepts
Develop New Experiential Retail Concepts 2004 Chain Store Age design competition: Retail Store of the Year: Exterior (Mall) The Mall at Robinson, Pittsburgh, PA Leverage core competencies in entertainment and family-oriented retailing Expect to open approx. 5 friends 2B made ® stores in 2006 Build-A
Slide 22: Powerful Store Financial Model
Powerful Store Financial Model Leverage Corporate and Operating Expenses Over Larger Store Base; Grow comp store sales Sales/Expense Leverage Expense Leverage/ Comp Stores New Stores New Initiatives UK/Ireland (1) Stores are considered comparable beginning in their thirteenth full month of operation
Slide 23: Strategic Initiatives
STATEGIC INITIATIVES --UK acquisition integration --Ohio distribution center
Slide 24: UK Acquisition
UK Acquisition Expect to rebrand and convert approximately 25 Bear Factory stores. Five stores converted so far; store conversion process began in May; expect to complete in time for 2006 holiday season During conversion process, stores being converted are closed for approx. 22 days Bulk of store co
Slide 25: The Bear Factory Before…
The Bear Factory Before…
Slide 26: And Now….The Oracle, Reading, England
And Now….The Oracle, Reading, England
Slide 27: Leveraging Merchandise Development and Marketing Expertise
Leveraging Merchandise Development and Marketing Expertise
Slide 28: Ohio Distribution Center
Ohio Distribution Center Operational in September 2006 – construction, systems development remain on schedule Key personnel in place – warehouse manager and warehouse systems administrator Benefits include – increased speed to market , improved inventory control and enhanced operating efficiencies B
Slide 29: Marketing
Marketing
Slide 30: Marketing Strategy
Improved Sales, Brand Awareness, and Profits Marketing Strategy Marketing Web TV Advertising Direct Mail & E mail Partners Store Events PR Mobile Tourism
Slide 31: 6 3 3
6 3 3
Slide 32: 6 3 3
6 3 3
Slide 33: Highly Profitable and Growing
Highly Profitable and Growing Retail-Entertainment Brand Creative Merchandise AND ‘Hands-On’ Experience Numerous Growth Opportunities Powerful Marketing Loyal and Connected Customers Experienced and Talented Management Team Broad Demographic Appeal Highly Productive and Profitable Store Model Proven
Slide 34: Questions
Questions
Build-A-Bear Workshop — Credit Suisse Consumer and Retail Conference 2006 on 6ix