Build-A-Bear Workshop(BBW)2023-04-12 16:00Financial Performance - Total revenues and profit continued to grow in fiscal 2022 compared to fiscal 2021, driven by initiatives and investments made prior to and during the pandemic [17]. - E-commerce sales increased by 137% in Q4 fiscal 2022 compared to Q4 fiscal 2019, reflecting the impact of key digital initiatives [17]. - A special dividend was announced on March 8, 2023, payable to all common stockholders as of March 23, 2023, reflecting confidence in the company's strategy [19]. Inventory Management - As of January 28, 2023, inventory balance was 1.3 million compared to January 29, 2022, indicating effective inventory management [23]. Retail Expansion - Over 20 new Build-A-Bear Workshop retail experience locations were opened in fiscal 2022, with plans for a net increase in North America in fiscal 2023 [18]. - Approximately 35% of total retail locations are now in non-traditional settings, such as family-centric tourist and hospitality sites [18]. Expense Management - The company plans to maintain disciplined expense management amid inflationary pressures and supply chain challenges [19]. Employment - The company employs approximately 1,000 full-time and 3,200 regular part-time employees across the U.S., Canada, the U.K., and Ireland as of January 28, 2023 [28]. Strategic Partnerships - Strategic relationships with brands like Disney and Pokémon are leveraged for marketing and merchandising opportunities, enhancing brand reach [32]. Internal Control over Financial Reporting - The Company conducted an evaluation of its internal control over financial reporting as of January 28, 2023, and concluded that it is effective [186]. - Ernst & Young LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of January 28, 2023 [186]. - There were no changes in the internal control over financial reporting during the year that materially affected its effectiveness [187]. - The internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting, but it has inherent limitations [193]. - The Company maintained effective internal control over financial reporting based on the COSO criteria [189]. - The management's evaluation of internal control included assessing the risk of material weakness and testing the design and operating effectiveness of controls [192]. - The Company’s internal control over financial reporting includes policies and procedures for maintaining accurate records and preventing unauthorized asset acquisition [193]. - The audit conducted by Ernst & Young LLP included understanding internal control, assessing risks, and evaluating the effectiveness of controls [192]. - The management's report on internal control over financial reporting is based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission [186]. - The Company acknowledges that internal controls may not prevent or detect all misstatements due to their inherent limitations [194].