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Dive Brief:
- Build-A-Bear has appointed David Henderson as chief revenue officer. Henderson will start in the new position on Monday as a member of the company’s executive team, reporting to CEO Sharon Price John, the company said in a Thursday announcement.
- Henderson’s responsibilities will include driving growth across the company’s main revenue streams of corporately run retail and e-commerce. He will also oversee warehouse operations and contribute to the organization’s strategic management.
- Build-A-Bear ended the second quarter with a 2.4% increase in revenue to $111.8 million and net retail sales of $103.5 million. The company maintained its full-year guidance and anticipates total revenue growth on a low to mid-single-digit percentage basis.
Dive Insight:
Henderson comes to the table with over two decades of experience in the consumer products, toy and entertainment industries. His most recent position was chief commercial officer of toy company Melissa & Doug, a role he held for four years, according to a U.S. Securities and Exchange Commission filing.
He also worked as president and global general manager of baby gear at Newell Brands and before that, spent 18 years at Hasbro, rising to senior vice president of consumer products and licensing for North America. John said in a statement that Henderson’s experience and skills will enable him to make an immediate contribution as the company accelerates its long-term strategic initiatives.
Under the terms of a three year agreement set to renew annually, Henderson’s compensation package includes a base salary of $475,000, with eligibility for an annual bonus with a target value equal to at least 50% of the base salary. He will also receive a signing bonus of $25,000.
Build-A-Bear has worked in recent years to extend its consumer base beyond kids to take advantage of the multi-generational appeal of its toy offerings. A focus on collectibles, trim products, licensing and gifting, drove an increase in its teen and adult business that now represent about 40% of total retail sales, John said during a recent earnings call.
During the August call, John said Build-A-Bear saw “the best second quarter in the company’s history.” That’s despite a 28% decrease in consolidated e-commerce demand, which includes online order fulfillment through both stores and the warehouse. John attributed Q2’s low online performance to ongoing digital system enhancements and the timing of product launches.
During the quarter ended Aug. 3, the St. Louis-based retailer said it added a net 17 locations globally, bringing the company to an overall store count of 548 locations, the majority of which are corporately managed. The company also operates stores through partnerships and franchising. The company previously said it wants to open 50 new locations this fiscal year.
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Nate Delesline III, Khareem Sudlow
