Build-A-Bear Workshop will open 50 new stores by the end of the year and is expanding its corporate headquarters, company leaders said during Thursday.
CEO Sharon Price John reported that the toy manufacturer opened 37 new locations in 2023 and plans to launch at least 50 more this year. Though John didn’t specify where these new retail stores would be, she said on a Thursday earnings call that the company actively looks for tourist destinations and malls.
Plus, she said, Build-A-Bear will continue to focus on its global expansion. This week, the company opened its second store location in Rome. Already, the retailer has 74 international franchise stores.
“We believe that there is more opportunity for us to grow our international footprint,” chief financial officer Voin Todorovic told investors. “That’s part of our expectations to grow. These partner-operated locations (are) expanding a new market and more to come in the future as we continue to work with different partners across the globe.”
Build-A-Bear reported a total revenue increase of 4% to over $486 million for the 2023 fiscal year. This is also up 44% from the $338 million generated in 2019, or the last pre-pandemic year, John said.
The CEO also pointed out that this past year represents the third year in a row of record results for the company and they expect to deliver a fourth consecutive record-breaking year in 2024.
Sales were partly driven by Build-A-Bear’s Glisten and the Merry Mission campaign which highlighted its holiday plush line through music videos, an app, online game and feature-length animated film. John said on the call that this marketing effort drove Merry Mission product sales up more than 65% from the year before.
During Thursday’s call, John also defended the company against a recent lawsuit brought down on Build-A-Bear alleging product infringement. Earlier this year, Squishmallows’ parent company, California-based Kelly Toys Holdings, sued Build-A-Bear over its latest plush line, Skoosherz.
“Build-A-Bear is a 25-year upstanding intellectual property holder and we understand intellectual property law,” John told investors. “Skoosherz is based on many of our pre-existing animals and we are excited about the concept.”
One caller asked about Bear Cave sales, referring to the company’s adult gift collection which recently came under fire after releasing its “After Dark” collection for Valentine’s Day.
John said the Bear Cave products do a “robust business,” but did not release specific sales numbers for the line.
Build-A-Bear is headquartered in downtown St. Louis. On Thursday, the company announced that it will be expanding its cooperate headquarters at 415 South 18th Street in Union Station and will now take occupation of the entire building.
The company was founded in 1997 by Maxine Clark and opened its first store in the St. Louis Galleria Mall. Build-A-Bear currently has 525 locations.
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