The company – which allows children and adults to create and dress their own toy bears – launched the review last year after its first quarter income missed expectations.
Back then, Build-A-Bear said it would consider all options, including a possible sale, but stated today that the “comprehensive” review found a share buyback programme to be the best outcome.
Buyback a ‘testament to our confidence’, says boss
“Because our company has returned to sustained profitability and has strong cash flow and a flexible capital structure, we believe Build-A-Bear Workshop will have the capacity to repurchase our stock while still deploying capital to facilitate the attainment of our next stated objective of sustained profitable growth,” said chief executive Sharon John.
“The board’s decision to adopt a share repurchase program is a testament to our confidence and optimism in the strength of our evolved business model and our continued commitment to increase shareholder value.”
Under the programme, Build-A-Bear plans to dip into its cash reserves buy back the US$20mln worth of its stock over the next three years.