Revenue during the quarter dropped 6.22 percent to $110.34 million from $117.66 million in the previous year period. Gross margin for the quarter contracted 511 basis points over the previous year period to 46.37 percent. Total expenses were 96.79 percent of quarterly revenues, up from 91.57 percent for the same period last year. That has resulted in a contraction of 522 basis points in operating margin to 3.21 percent.

Operating income for the quarter was $3.55 million, compared with $9.92 million in the previous year period.

Sharon Price John, Build-A-Bear Workshop President and Chief Executive Officer, commented, "After reporting three consecutive years of comparable sales increases and improved profitability, these results are clearly disappointing. Through November, consolidated comparable sales were positive despite slightly negative traffic levels. However, similar to industry reported retail trends, our December traffic levels abruptly reversed, which adversely impacted both sales and profit for the quarter and the year.

Working capital declines
Build-A-Bear Workshop, Inc. has witnessed a decline in the working capital over the last year. It stood at $27.19 million as at Dec. 31, 2016, down 5.83 percent or $1.68 million from $28.87 million on Jan. 02, 2016. Current ratio was at 1.33 as on Dec. 31, 2016, up from 1.29 on Jan. 02, 2016.