Shares of Build-A-Bear Workshop Inc. declined Thursday, after the toy animal retailer said costs from an inventory write-off and a review of strategic alternatives weighed down quarterly profit.
Shares shed $1.42, or 10.9 percent, to $11.58 in late morning trading.
Build-A-Bear Workshop said profit fell 36 percent to $9.9 million, or 48 cents per share, from $15.4 million, or 75 cents per share, a year earlier.
Results in the most recent quarter included 9 cents per share of costs from inventory write-offs and a strategic alternative review, while year-ago results benefited from an adjustment to the company's loyalty program.
Revenue rose nearly 3 percent to $147.4 million from $143.3 million, helped by a 49 percent rise from sales in Europe.
Analysts polled by Thomson Financial expected per-share earnings, on average, of 66 cents on revenue of $153.3 million.
For the full-year, profit declined to $22.5 million, or $1.10 per share, from $29.5 million, or $1.44 per share. Sales rose to $474.4 million from $437.1 million.
"Our 2007 results reflect the current challenges in the retail environment," said Build-A-Bear Workshop Chairman and Chief Executive Maxine Clark.
Build-A-Bear will slow store growth in 2008 to about 20 new stores from 39 new stores in 2007. It also plans to finish its review of strategic alternatives by the end of the first quarter.
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