Stuffed animal retailer Build-A-Bear Workshop Inc. said Monday its board of directors authorized an increase in the company's share repurchase program to up to $50 million.
The company announced a $25 million share buyback program in February 2007. As of March 7, about 176,500 shares had been repurchased. The company had 20.4 million shares outstanding as of Dec. 29.
The retailer said it will pay for the additional buybacks with cash on hand. The buyback boost was part of a review of strategic alternatives at the company, Build-A-Bear said.
As part of the review, the company also said it will reduce the number of new stores it opens in 2008 to about 25 new stores, down from 50 in 2007.
Build-A-Bear also said it will launch a TV ad campaign in the second quarter.
The retailer added that its U.S. same-store sales, or sales at stores open at least a year, "continue to reflect a decline in consumer spending" and are similar to what the company experienced in its fourth quarter, when same-store sales fell 12.6 percent in the U.S.
Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.
Many retailers have seen sales drop recently as consumers cut back on discretionary spending due to lower confidence, high gas prices and the weak housing market.
Shares fell 11 cents to close at $10.94.
Terms & Conditions
RSS Headlines
Fool UK