Weak Christmas period sales didn’t dampen investor sentiment on Build-A-Bear Workshop (NYSE:BBW) as the firm’s share price rose despite a fall in sales over the period.
The firm reported a solid year in 2015, with adjusted net income of $19.6mln for the last fiscal year, rising from $17.4mln the year before.
Investors honed in on this, with shares rising more than 13% to $13.78 in early deals.
Total revenue dropped, however, to $377.7mln, compared to $392.4mln in 2014 as sales in the Christmas period slipped back to $117.7mln, against a comparable of $131.5mln.
The company’s results for its fourth quarter were lower than anticipated, as adjusted net income dropped to $10.3mln, compared to $13.1mln the year before.
Sharon Price John, chief executive, said: “In 2015, we delivered our third consecutive year of improved profitability and increased consolidated comparable sales.”
“We made steady progress toward our stated long-term sales productivity goals as we achieved the highest average transaction value in our history and highest units per transaction since 2008,” she added.
She said the company will continue with its store renovation strategy, noting it has already started to see increased sales start to come through from this.
Build-A-Bear Workshops noted that, with this strategy, it should see a modest rise in sales in 2016.