Build-A-Bear Workshop, Inc. Q2 2009 Earnings Call Transcript

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2009-07-30 10:57:13.0

Tags: Build-A-Bear Workshop Inc., Call Transcript, Earnings, Credit Suisse Group AG, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Paul LeJuez – Credit Suisse.

Paul LeJuez – Credit Suisse

SG&A dollars were up in the second quarter sequentially. Usually there’s a decline. I’m just trying to understand what might be going on there on the SG&A line and I guess related to that perhaps is marketing spend, just wondering what you have planned for the second half in dollars versus last year.

Maxine Clark

So you’re looking at first quarter over second quarter?

Paul LeJuez – Credit Suisse

Yes. Typically dollars go down in the second quarter for you guys on your SG&A line. They went up modestly but still up, so just wondering if there was anything one time, anything that got pulled forward into the second quarter, maybe related to marketing that’s going on for the second half.

Maxine Clark

Not in particular. Our marketing expense was in line with the programs that we had put in place for the second quarter and I think as we look at it, we now believe that our full year impact to SG&A would be $18 million savings.

Paul LeJuez – Credit Suisse

How about on the marketing side in the second half, marketing dollars versus prior year?

John Haugh

Marketing dollars, we as a part of the overall SG&A savings, we took a good chunk out of marketing. We have distributed that pretty much between first and second half so we spent what we thought smartly in the first half during key promotions like Easter and some Valentine’s Day and as Maxine mentioned, the Mother’s Day events and the [tall] events. In the second half we will have our spending commensurate to last year, down by the same percent year-over-year as we had in the first half, but we will spend aggressively behind our August promotion that we talked about, more modestly in September and October and then we’ll put a lot of energy against November and December, but again it will be ratcheted down by the overall adjustment that we made to ?09/

Maxine Clark

I think in the very beginning of the year we did say that we thought we would be able to decrease our marketing expense by about $8 million and we’re on target for that on a full year basis.

Operator

Your next question comes from Gerrick Johnson – BMO Capital Market.

Gerrick Johnson – BMO Capital Market

 

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