Build-A-Bear Workshop, Inc. Q3 2009 (Qtr End 10/3/09) Earnings Call Transcript

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2009-10-29 11:06:07.0

Tags: Build-A-Bear Workshop Inc., Call Transcript, Earnings, Promotion, Sales Strategy, Sales Force Management, Marketing Research, Sales, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

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

Analyst for Paul LeJuez - Credit Suisse

It's actually Tracy filling in for Paul. I had a question on that you mentioned that the fourth quarter sales trends are improving versus third quarter and was wondering if that was related to a specific promotion or initiative like maybe McDonalds? Or has traffic just generally gotten better?

And then was also wondering in Europe are you doing similar things to what you've done in the US in terms of the $29.99 promotion? Thanks.

Maxine Clark

We do believe that October, which starts our fourth quarter, did have a positive impact from the McDonalds promotion and that it's hard to tell whether overall traffic is improving. I think our merchandise mix is right and we are getting an improved HPG as our inventory balances out better in the mid to higher parts of our price points, the Jonas Brothers. End of September, it was the last weekend in September and also it's available now in October, so that also helps. So I think that's all positive.

We run similar marketing promotions in the UK to what we do in the United States but we did not run the $29.99. We do not run the McDonalds, that the McDonalds promotion and they don't necessarily run the same things in other parts of the world that they run in the United States. It's all different. So from time to time there are different offers, but generally speaking they're usually the same thing. This month it happens to be significantly different. Back to school and their back to school timing is slightly different than ours too but September and October promotions differ pretty dramatically.

Operator

Your next question comes from the line of Mike Smith - [Density] Capital.

Michael Smith - [Density] Capital

I was trying to write down fast but I wasn't good at that. Ridemakers, how much are you on the hook for with them and they're down to it sounds like three stores?

Tina Klocke

They're actually down to two stores that are tourist venues and three other stores that are continuing to operate in mall venues. Our net investment after the third quarter write-off was about $4 million which is inclusive of the receivables. And we did open a temporary store in Disney Land in Anaheim, California.

Operator

 

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