Build-A-Bear lowers FY18 revenue view to $335M-$340M
Build-A-Bear Workshop updated its revenue expectations for the FY18 in conjunction with its presentation at the ICR Conference 2019. FY18 revenue view includes the negative impact of $3.9M due to the adoption of new accounting standards effecting the timing of the recognition of breakage revenue for certain gift cards and the nonoccurrence of the prior year benefit of $6.0M for a 53rd week in revenue. Total revenues were $364.0M for the recast 53-week period ended February 3, 2018. The $9.9M impact of these two items would adjust total FY17 recast year revenues to $354.1M. Within the Company's Direct-To-Consumer segment, total revenues in North America are expected to decline by approximately 2% compared to the adjusted recast FY17 and total revenues in Europe are expected decline in the range of 17% to 20% compared to the adjusted recast FY17. The company commented, "We believe that FY18 had several anomalies that converged to negatively impact our business. The shortfall in our year's results are largely attributed to the persistent and significant revenue and profitability challenges in the UK as unresolved issues related to Brexit negatively impacted consumer confidence and currency exchange rates and new privacy laws, known as GDPR, impeded our marketing communications. "