rukawa Posted April 30, 2013 Share Posted April 30, 2013 I walked into a build-a-bear store. This is a store where kids can build their own teddy bears. They can accessorize the bears with little outfits, shoes etc. The bears are cheap...the accessories are pricey. I remember thinking wow what a fantastic idea ... this must be a great business. I checked it out on valueline today. The company is unprofitable. I was really amazed. It appeared to me to be an interesting case study of how a great idea doesn't guarantee a great business. The stores have good gross margins, good inventory turn over but the company has high SG&A. I think it is just a case of over-expansion and bad management. Not sure if anyone knows the story here. I am Canadian so this is the first time I have ever seen a store like this. Link to comment Share on other sites More sharing options...
DCG Posted April 30, 2013 Share Posted April 30, 2013 They've been around here in the U.S. for a while and have always seemed to have a hard time being profitable. Link to comment Share on other sites More sharing options...
Icarus Posted April 30, 2013 Share Posted April 30, 2013 I think they offer a unique experience and the stores around me usually have customers in them. VIC has a few write ups on this name. Link to comment Share on other sites More sharing options...
SmallCap Posted April 30, 2013 Share Posted April 30, 2013 Rukawa, I had the same experience that you did. I saw them in the mall and thought what a great business with excellent margins and thought I might have stumbled upon the Peter Lynch style growth company. But I could never get comfortable with what I saw in the financials. I am still not fully sure why they aren't doing better. Link to comment Share on other sites More sharing options...
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