Build-A-Bear Workshop Inc. (NYSE:BBW) Q2 2020 Earnings Conference Call - Final Transcript

Sep 01, 2020 • 09:00 am ET

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Build-A-Bear Workshop Inc. (NYSE:BBW) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from the line of Eric Beder with SCC Research. Please proceed with your questions.

Analyst
Eric Beder

Good morning.

Executive
Voin Todorovic

Good morning, Eric.

Analyst
Eric Beder

Congrats on navigating through these crazy times. Could you give us an update on how it's going with Walmart and how the U.K. stores are doing?

Executive
Sharon Price John

Hi, Eric. It's Sharon. Well, the Walmart, we closed those stores as well when we talk about the stores that had been in forced closures that we felt was inclusive of Walmart for us, partially because that's -- even though some of the Walmarts remained open, we did not continue to operate those until much later in the process. We have started to reopen some of those stores and they are performing really no different than some of the more regular stores that we have or more traditional stores that we have.

Although we do have, just to be clear, some interesting dynamics going on in different locations, then I'll just kind of riff on that for one moment, if I can, because it will make sense when I speak about the U.K. Some of the big urban areas are struggling, for example, like some of our New York areas and so, some of like London as well. But that same kind of what we might have been previously defined at the tourist location, we have tourist locations in more rural areas, let's say, like the Smoky Mountains that are outperforming even last year. So it's a really interesting dynamic but that -- overall, the resulting in the data that we shared with you on the prepared remarks has an improving trend, and in some cases, starting to see some days that are now performing better than prior year.

The U.K. is not performing as well as the North America right now, but it's starting to ramp up as well and we're seeing that same acute kind of difference between the London and the rest of the world. So it's pretty dynamic. Do you want to add anything, Voin?

Executive
Voin Todorovic

Yeah. So, also in U.K., Eric -- the stores in U.K. were mostly opened mid late June across the country and after the reopening, we started to see sequential improvement as the stores are opened little bit longer, but again, we are seeing same similarities with U.S. as Sharon mentioned regarding the urban locations in Central London versus the rest of the fleet in U.K.

Analyst
Eric Beder

Last question. And if you look at some of the corporate relationships and other pieces, how are those ramping up and how do you expect them to go going forward? Thank you.

Executive
Sharon Price John

Are you referring to our third-party relationship?

Analyst
Eric Beder

Yeah, correct.

Executive
Sharon Price John

Yeah. So some of the third-party relationships such as Carnival Cruise Lines or Great Wolf Lodge or Landry's Restaurants, of course, were significantly impacted by COVID and closed down entirely. Carnival, for example, that you may know is -- continues to be closed down and all -- none of those businesses, just like