St. Louis Build-A-Bear Workshop announced new plans to streamline costs as it reported Thursday that its fourth-quarter profit fell nearly 50%.
The company said its fourth-quarter total revenue decreased 4% to $142.1 million, while its full-year total revenue decreased 1% to $467.9 million.
The company also reported that revenue from its European operations increased 6% to $24.9 million in fourth quarter 2008, compared to the same period in the year before. Full-year revenue from European operations increased 28% to $75.5 million compared to last year.
Build-A-Bear said it plans to streamline costs “while prudently scaling back on capital expenditures” to preserve profitability and cash flow in the current economic environment.
The company said it expects to generate about $15 million in pre-tax savings in fiscal 2009 from the cost reductions, while it cuts capital expenditures 61%, to about $9 million, down from $23 million in fiscal 2008.
The company also said it expected to open one new store in 2009, compared with its earlier plan to open six stores.