Credit Suisse
Consumer and Retail Conference
June 13, 2006
New York City
NOTE: Earnings guidance was reaffirmed as of April 27, 2006 and is not
being updated or re-affirmed in this presentation.
Maxine Clark Barry Erdos
Chairman & Chief President & Chief
Executive Bear Operating Officer Bear
The Bear Facts
Bearemy®, our huggable mascot
Page 2
This presentation contains "forward-looking statements" (within the meaning of the federal securities
laws) which represent the Build-A-Bear Workshop’s expectations or beliefs with respect to future events.
These forward-looking statements are subject to certain risks and uncertainties that could cause actual
results to differ materially from those anticipated. Those factors include, without limitation: we may not
realize some of the expected benefits of the acquisition of Amsbra and The Bear Factory; we may be
unable to construct and/or effectively run our own warehouse and distribution center; we may be unable
to generate comparable store sales growth; our marketing initiatives may not generate sufficient brand
awareness and sales; we may be unable to effectively manage our international franchises or comply
with changing laws relating thereto; we may be unable to generate demand for our retail experience, or
to respond to consumer preferences; customer mall traffic may decrease, as a result of various factors,
including a reduction of consumer confidence because of terrorism or war; general economic conditions
may worsen; our market share could be adversely affected by competitors; we may lose key personnel,
or be unable to hire qualified additional personnel; vendor deliveries may be disrupted; the availability
and costs of our products could be impacted by international manufacturing and trade issues; our
warehousing and distribution vendors may perform poorly; we may fail to protect our intellectual property
and may have infringement, misappropriation or other disputes or litigation with third parties; we may be
unable to open new stores, renew or replace our store leases, enter into leases for new stores on
favorable terms, or continue to comply with our current leases; we may experience communications or
information systems failures; we may suffer negative publicity or be sued due to alleged violations of
labor laws, employee regulations or unethical practices, either by the Company or its merchandise
manufacturers; and we may violate or be accused of violating privacy or security laws by reason of
improperly obtaining or failing to adequately protect Guest information. These and other applicable risks,
cautionary statements and factors that could cause actual results to differ from the Company's forward-
looking statements are included in the Company's filings with the SEC, including as described in the
Company's annual report on Form 10-K for the fiscal year ended December 31, 2005. The Company
undertakes no obligation to update or revise any forward- looking statements to reflect subsequent
events or circumstances even if experience or future changes make it clear that any projected results
expressed or implied therein will not be realized.
Build-A-Bear Workshop® , Bearemy®, Where Best Friends are Made® and other trademarks, services
marks, and trade names used in our business are owned by Build-A-Bear Workshop Inc. and/or its
affiliated companies. This document also refers to certain trademarks and trade names of our licensors
and third parties, which other trademarks and trade names are the property of their respective owners.
See Corporate Disclosure Policy for additional guidelines on disclosure practices.
Agenda
Build-A-Bear Workshop background
Growth strategies
Strategic initiatives
UK acquisition
Ohio distribution center
Marketing and brand building
Page 3
UK Acquisition -- The Bear Factory and Amsbra, Ltd.
Acquisition complete on April 3, 2006 -- Integration on
schedule
Conversion of Bear Factory stores to Build-A-Bear Workshop
stores underway – fifth store converted and reopened in
Grosvenor Centre, Chester, England
Convert Bear Factory stores to BBW stores by holiday 2006;
open 3 to 5 new stores in the U.K. each year, 70 to 75 store
market potential
Acquisition and integration will reduce F06 earnings by
approximately $0.10 to $0.13
Bulk of dilution will take place in the second and third
quarters, with accretion expected in the fourth quarter
Leveraging merchandising, marketing, store operations and
information systems expertise
Page 4
Highly Profitable and Growing
Retail-Entertainment Brand
Creative Merchandise
AND ‘Hands-On’
Experience
Numerous Growth
Opportunities
Powerful
Marketing
Loyal and Connected
Customers
Experienced and
Talented
Management Team
Broad Demographic
Appeal
Highly Productive
and Profitable Store
Model
Page 5
Proven and Scaleable
Technology
Infrastructure
Build-A-Bear Workshop Overview
Global leader in interactive retail
First store opened 1997
Over 240 stores in North
America, Canada and UK
Stores opened or scheduled to
open in 15 international countries
Nearly 39 million furry friends sold
More than a toy store – building a
powerful entertainment brand with
numerous growth opportunities
Broad demographic appeal to loyal
Guests
Page 6
A Unique Retail-Entertainment Experience
Conventional Retail
Merchandise driven – sell
the brand, item, or price
Traditional display
techniques
Appeals to a particular
demographic
Sales driven through
markdowns and promotion
Build-A-Bear Workshop
Sells the brand experience
Highly interactive theme
park techniques
Appeals to a broad
demographic
Marketing builds the brand
and drives sales
VS
Page 7
Our Associates ARE the Experience
Approximately
80% of returning
Guests plan their
visit to our store in
advance
92% of Guests
rated their overall
experience the
highest or second
highest rating
Page 8
Our Products are the Other Half of the Formula
Offer a well-coordinated fashion
merchandise selection of less than 450
SKUs per store
Talented in-house product development
team
Tracks cultural and fashion trends
Disciplined test and reorder
methodology
Cub Advisory Board regularly gives
input on new products
Relationships with strategic brands
Beary LimitedTM edition animals
encourage collectibility
The Latest Trends and Partnerships with
Powerful Brands
Fashion
Sports
Entertainment
Page 9
NEW Friends Joining Us This Summer!
Primary target is families with
children typically age 3 to 12
Other Guest segments include:
Grandparents, aunts and
uncles shopping for kids
Teen girls 13-17 who bring
along boyfriends
Child-centric organizations
Leisure travelers
Special interest collectors
75% girls/25% boys. Avg age
of bear owners is 10 years old.
Destination Location With Broad Appeal
Page 11
Our Guests Come Back
% of All Transactions
No Bear:
Clothing &
Accessories
Only
Transactions
with Stuffed
Animals
% of Transactions to
Repeat Guests
No Bear:
Clothing &
Accessories
Only
Animals
Registered
to Repeat
Guests
Over 60% of
all
transactions
are with a
Returning
Guest
Repeat Guest Factor
Page 12
Still Growing Strong
Page 13
Numerous growth opportunities
Long-Term Growth Strategy
Powerful Store
Financial Model
Expense
Leverage/ Comp
Stores
New Stores
New
Initiatives
UK/Ireland
Page 14
A Highly Productive Store Model
Mean = $366
Source of other retailers data: Citigroup
Build-A-Bear Workshop®:
$602 sales per gross SF in 2004,
$615 sales per gross SF in 2005
Page 15
Superior Store Economic Model
Stores are profitable in first 12 months
Retail sales per gross square foot of $615 in 2005.
Strong gross profit margins
Store SG&A expense includes approx. 7.5% to 8% marketing expense and
14% to 15% store payroll expense (% of total revenues)
Investment per store averaged approx. $0.6 million in 2005
Note: This store economic model description excludes the pending impact of The Bear Factory and
Amsbra, Ltd. acquisition.
Page 16
New Store Growth
Approx. 30 new stores in 2006; about 80% in
new markets and 20% in existing markets
New stores open with very strong sales, typically
above the chain-wide average of $615 per
square foot.
Expansion plans include both new and existing
markets
Flexible store model works in a variety of
locations and geographies
New site criteria based on forecasting model
and demographic variables
Estimated market potential of approx. 350 Build-
A-Bear Workshop stores in the U.S. and Canada
Page 17
Number of Stores - U.S. and Canada
2000
2001
2002
2003
2004
2005
39
71
108
150
170
200
Our stores in Manhattan and the Mall of America are
building the Build-A-Bear Workshop brand
Bigger and Better Than Ever…
Page 18
Grow International Franchises
Page 19
Currently have master franchise
agreements in 15 countries
19 stores at year end 2005 (Ex. UK)
Plan to open up to 20 stores in 2006
Potential of approx. 300 stores
Strict control of franchisee format and
operations
Goal is to have well-capitalized
franchisees with retail and/or real estate
expertise
Licensed Product Growth
Page 20
In 2006, focus on approximately
20 core licensing partners
Agreements with leading
manufacturers to use our brand
to develop products for retailers
including:
Kids’ footwear from Elan-
Polo
Baskets and treats from
Houston Harvest
Gift books from Hylas
Publishing
Craft books from Silver
Dolphin Publishing
Greeting cards and
stationery from Peaceable
Kingdom Press
Develop New Experiential Retail Concepts
2004 Chain Store Age design competition:
Retail Store of the Year: Exterior (Mall)
The Mall at Robinson, Pittsburgh, PA
Page 21
Leverage core competencies in entertainment and family-oriented retailing
Expect to open approx. 5 friends 2B made® stores in 2006
Build-A-Dino™ located within the T-Rex™ Cafe at The Legends at Village West,
Kansas City to open this summer
Where Best Friendosaurs Are Made™
Sales/Expense Leverage
Powerful Store
Financial Model
Expense
Leverage/ Comp
Stores
New Stores
New
Initiatives
UK/Ireland
Page 22
Leverage Corporate and
Operating Expenses Over
Larger Store Base; Grow
comp store sales
(1)Stores are considered comparable beginning in their thirteenth full month of
operations. Comparable store sales percentage changes are based on net retail
sales at comparable stores, which exclude the web store and seasonal and event-
based locations.
STATEGIC INITIATIVES
--UK acquisition integration
--Ohio distribution center
Page 23
UK Acquisition
Expect to rebrand and convert approximately 25
Bear Factory stores.
Five stores converted so far; store conversion
process began in May; expect to complete in time
for 2006 holiday season
During conversion process, stores being converted
are closed for approx. 22 days
Bulk of store conversions in second and third
quarters
Dilution to earnings primarily weighted in the
second and third quarters due to expenses and
loss of revenue from store closures primarily in
these periods
Page 24
The Bear Factory Before…
And Now….The Oracle, Reading, England
Leveraging Merchandise Development
and Marketing Expertise
Ohio Distribution Center
Operational in September 2006 – construction, systems development
remain on schedule
Key personnel in place – warehouse manager and warehouse systems
administrator
Benefits include – increased speed to market, improved inventory control
and enhanced operating efficiencies
Building block for future growth of Build-A-Bear Workshop® and friends 2B
made®
Page 28
Marketing
Page 29
Marketing
Improved Sales, Brand Awareness,
and Profits
Web
Marketing
Strategy
TV
Advertising
Direct
Mail &
E mail
Page 30
Partners
Store
Events
PR
Mobile
Tourism
Highly Profitable and Growing
Retail-Entertainment Brand
Creative Merchandise
AND ‘Hands-On’
Experience
Numerous Growth
Opportunities
Powerful
Marketing
Loyal and Connected
Customers
Experienced and
Talented
Management Team
Broad Demographic
Appeal
Highly Productive
and Profitable Store
Model
Page 33
Proven and Scaleable
Technology
Infrastructure
Questions