BUILD-A-BEAR WORKSHOP INC Segments Disclosure

(15)	Segment Information

 

The Company’s operations are conducted through three operating segments consisting of DTC, commercial and international franchising. The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, the Republic of Ireland and the U.K., including the Company’s e-commerce sites and temporary stores. The commercial segment includes the Company’s transactions with other businesses, mainly comprised of wholesale activities, licensing the Company’s intellectual properties for third party use, and entertainment activities. The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in select countries in Asia, Australia, the Middle East, Africa, and South America. The operating segments have discrete sources of revenue, different capital structures and different cost structures. These operating segments represent the basis on which the Company’s Chief Executive Officer, who is also the Chief Operating Decision Maker ("CODM"), regularly evaluates the business in assessing performance, determining the allocation of resources and the pursuit of future growth opportunities. The CODM uses contribution margin to allocate resources across the reportable segments as part of the Company's long-range and annual planning processes, and to evaluate planned versus actual results when assessing segment operating performance.  Accordingly, the Company has determined that each of its operating segments represent a reportable segment. The three reportable segments follow the same accounting policies used for the Company’s consolidated financial statements.

 

Following is a summary of the financial information for the Company’s reporting segments (in thousands):

 

		Direct-to-								International
		Consumer				Commercial				Franchising				Total
Fifty-two weeks ended January 31, 2026
Total Revenue		$	485,956			$	38,750			$	5,126			$	529,832
Cost of Goods Sold			213,229				17,199				3,775				234,203
Gross Profit			272,727				21,551				1,351				295,629
Selling, General & Administrative			146,732				962				-				147,694
Contribution Margin			125,995				20,589				1,351				147,935
Overhead Expenses(1)															81,509
Interest income, net															(801	)
Income before income taxes														$	67,227
Fifty-two weeks ended February 1, 2025
Total Revenue		$	460,325			$	31,387			$	4,692			$	496,404
Cost of Goods Sold			207,200				13,439				3,247				223,886
Gross Profit			253,125				17,948				1,445				272,518
Selling, General & Administrative			134,076				1,166				-				135,242
Contribution Margin			119,049				16,782				1,445				137,276
Overhead Expenses(1)															70,996
Interest income, net															(861	)
Income before income taxes														$	67,141
Fifty-three weeks ended February 3, 2024
Total Revenue		$	456,163			$	25,413			$	4,538			$	486,114
Cost of Goods Sold			206,815				12,091				2,816				221,722
Gross Profit			249,348				13,322				1,722				264,392
Selling, General & Administrative			127,722				4,102				-				131,824
Contribution Margin			121,626				9,220				1,722				132,568
Overhead Expenses(1)															67,168
Interest income, net															(929	)
Income before income taxes														$	66,329

 

(1)	Overhead expenses contain selling, general and administrative expenses not attributable to a segment.

 

Total assets, depreciation and amortization, and capital expenditures for the Company's segments, as well as for Corporate and support, are as follows:

 

			Direct-to-								International
			Consumer				Commercial				Franchising				Corporate				Total
Fifty-two weeks ended January 31, 2026
	Total Assets		$	249,399			$	18,419			$	1,734			$	75,901			$	345,453
	Depreciation and amortization			10,782				136				-				4,034				14,952
	Capital Expenditures			17,432												8,113				25,545
Fifty-two weeks ended February 1, 2025
	Total Assets		$	170,132			$	11,712			$	2,571			$	105,541			$	289,956
	Depreciation and amortization			10,551				204				-				4,017				14,772
	Capital Expenditures			11,414				-				-				7,903				19,317
Fifty-three weeks ended February 3, 2024
	Total Assets		$	195,373			$	8,801			$	1,225			$	66,926			$	272,325
	Depreciation and amortization			9,517				393				-				3,747				13,657
	Capital Expenditures			6,733				-				-				11,562				18,295

 

The Company’s reportable segments are primarily determined by the types of products and services that they offer. Each reportable segment may operate in many geographic areas. Revenues are recognized in the geographic areas based on the location of the customer or franchisee. The following schedule is a summary of the Company’s sales to external customers (in thousands):

 

		North
		America (1)				Europe (2)				Other (3)				Total
Fifty-two weeks ended January 31, 2026
Net sales to external customers		$	451,218			$	71,687			$	6,927			$	529,832
Fifty-two weeks ended February 1, 2025
Net sales to external customers		$	425,139			$	65,233			$	6,032			$	496,404
Fifty-three weeks ended February 3, 2024
Net sales to external customers		$	426,244			$	56,141			$	3,729			$	486,114

 

For purposes of this table only:

 

(1)	North America includes corporately-managed stores in the U.S. and Canada.

(2)	Europe includes corporately-managed stores in the U.K. and Ireland.

(3)	Other includes franchise businesses outside of North America and Europe.