Build-A-Bear increases share repurchase authorization

By Lisa Kerner

Charlotte, N.C., March 10 - The board of directors of Build-A-Bear Workshop, Inc. completed its review of strategic alternatives and has authorized an increase in the company's share repurchase program to up to $50 million.

The company's existing $25 million share repurchase program was announced in February 2007. As of March 7, some 176,500 shares had been purchased for a total of approximately $4.7 million, according to a company news release.

Build-A-Bear expects to fund the share repurchases using cash on hand.

Maxine Clark, Build-A-Bear chairman and chief executive bear, said the comprehensive review was complicated by a tightening in the financing markets and a general weakening in the consumer and retail environment.

"The board's decision to increase our share repurchase program is a testament to our confidence and optimism in the strength of our business model and our commitment to increase shareholder value," Clark said in a company news release.

The company ended 2007 debt free and with $66 million in cash on its balance sheet, Clark added.

Build-A-Bear's 2008 plan includes:

• A focus on existing-store sales by slowing new store growth to approximately 25 stores, down from 50 new stores in 2007;

• Enhancing brand appeal through its new buildabearville.com;

• Growing store sales by leveraging and expanding the company's loyalty club program; and

• Attracting new customers through multi-media marketing initiatives including a new TV advertising campaign.

Build-A-Bear is an interactive make-your-own stuffed animal retail-entertainment experience based in St. Louis.

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