Q1 2021 Build-A-Bear Workshop Inc Earnings Call

May 26, 2021

[music].

Greetings and welcome to build a bear workshop first quarter 'twenty 'twenty 1 earnings call. At this time, all participants are in a listen only mode.

A question and answer session will follow the formal presentation, if anyone should require operator assistance and a conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded I would now like turn the conference of what's at your host today Ms. Allison Malkin of ICR. Please proceed.

Good morning, Thank you for joining US with me today are Sharon price, John and CEO and buoyant Gabor of Itch CFO for today's call Sharon will begin with the discussion of our first quarter 'twenty 'twenty, 1 performance, our strategic initiatives and our outlook for the year. After Duane will review, our financials and guidance and more.

The detail we will then open the call to take your questions. We ask that you limit your questions to 1 question and 1 follow up this way we can get to everyone's questions. During this 1 out of the call feel free to re queue. If you have further questions members of the media, who maybe on our call today should contact us after this.

The conference call with your questions. Please note the call is being recorded and broadcast live via the Internet. The earnings release is available on the industrial relations portion of our corporate website, a replay of both our call and webcast will be available later today on the IR site I will remind everyone net.

Forward looking statements are inherently subject to risks and uncertainties actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in the risk factors section in the company's annual report on form 10-K, we undertake no obligation to revise any forward looking.

Statements and now I would like to turn the call over to Sharon.

Good morning, everyone and thank you for joining us today to discuss our results for the first quarter of fiscal 2020.1 we.

We delivered a record breaking quarter on many levels.

We attribute this in part to the investment and actions that we put in motion prior to the pandemic and in many cases accelerated during the pandemic. These include leveraging the increased fulfillment capacity due to our warehouse reconfiguration of the systems upgrade and driving innovation with intense efforts and merchandise and marketing including.

[noise] aggressive positioning of our gift, giving program and as well at transforming our omnichannel capabilities supported by our sales force partnership.

Overall, we believe that the discipline and relentless focus we've had on executing our strategic plan put us in the position to take advantage of the improving consumer demand that we saw at in the quarter.

The quarters results were outstanding on both top and bottom line, including.

Total revenues of $92 million up 97% from 'twenty, and 'twenty and up 9% from the fiscal 2019 first quarter.

This includes increases in both our physical stores and digital channels.

We believe the improvement was driven by the strength of the emotional connection that has kept our build a bear brand and desired and relevant brand and strong merchandise mix and improved digital marketing program.

While our company benefited from better traffic trends coincide with the timing of the stimulus package and pent up demand as consumers start to reengage and personal experiences.

We delivered a material improvement in conversion rates and our highest level of dollars per transaction and our history.

Which drove our sales growth.

Notably, we had and 87% increase and ecommerce demand compared to the fiscal 2021st quarter and at 194% increase versus the 2019 period.

This was fueled by a triple digit increase and transactions from new guests.

Highlighting the effectiveness of our digital marketing campaign.

First quarter gross profit margin improved by 52, 8% of total revenues, reflecting the benefit of ongoing lease negotiations.

Leverage of fixed occupancy expenses and expansion of merchandise margin, which we have been consistently expanding for multiple years.

We returned to profitability and the quarter with $13 million and pre tax income, which represents the highest profit for our first quarter and our nearly 25 year history.

And looking at the balance sheet, we ended the quarter with total cash and equivalents of $46 million.

We are pleased with our first quarter results and while we expect to see continued evolution of consumer shopping patterns and preferences and the balance of the year.

We believe we have evolved as an organization and built the infrastructure to respond with greater agility to deal with potential uncertainty as we expect to deliver growth in 2021.

As we have previously shared we remain focused on our strategic priorities for the year, which are centered primarily on 3 key areas.

1 further acceleration of our digital transformation, including content and entertainment initiatives.

Too rapidly evolving our retail capabilities and experiences, including Omnichannel and significantly expanding e-commerce capacity and 3 maintaining a solid financial position, including a strong balance sheet to support our business and make strategic investments designed to drive further growth.

Regarding the acceleration of our digital transformation, we are intent on building our business with more effective use of technology and improved and enhanced fulfillment capabilities, while leveraging our expanded digital platforms to inform and drive marketing and content effort.

We believe that our multiyear sustained strong trend and e-commerce demand, including this quarter's 87% increase over the prior year highlighted by another quarter of triple digit growth and North America demonstrates the progress we continue to make in this area.

And the first quarter, we saw significant gains and our business around gifting moments and occasions, including Valentine's day, Easter and most recently mother's day as well as graduations.

We leveraged our enhanced digital marketing to target consumers that we're searching for gift solutions for these events.

With many of the key occasions centered on the adult to adult guests, we are leveraging our status as a multi generational brand to dessert diversify and expand consumer segment to drive incremental sales.

We also continued to develop our innovation pipeline and expanded our digital merchandise offerings for.

<unk>, giving and other older team plus the affinity guests with the launch of the bear case and.

A new section of our website that offers carefully curated product designed specifically with the demographic segments and mine.

Which prefer to shop online and.

We expect to add products that are slightly edgier, but still on brand as the year progresses.

In addition to our proprietary products offerings will include relevant licensed options, which continue to contribute to increased digital demand.

Sales from evergreen licenses, such as Pokemon, Harry Potter and the most recent successful introduction of the new product line inspired by Nintendo's highly popular animal crossing new horizon digital game are driving robust interest and demand.

Some of the upcoming additions planned for the bear case licenses include the <unk>.

This jam Lord of the range and Cruella, the new Disney movie.

As noted we are able to effectively target high potential consumers that are likely to have and affinity for bare case products through our advanced digital marketing programs, including CRM online campaigns and improve communications across touch points.

With the enhanced technology from the sales force platform that were added in early 2020 combined with robust consumer data, we continue to fine tune, our tactics to efficiently acquire new consumers and drive lifetime value of existing guests, which we believe contributed to our first quarter results.

In addition, we continued to use digital media content and entertainment of marketing and brand building tool to engage consumers and drive sales both online and in our stores as Covid restrictions began to ease.

Our second initiative is to rapidly evolve our retail capabilities as we extend ways.

Excuse me to connect with and meet the changing needs of consumers by driving omnichannel engagement and expanding delivery options.

Our North American stores were largely open and operating throughout the quarter.

We began the period with all of our European stores closed due to governmental restrictions. However, the majority reopened in April.

Not only did we see improving traffic patterns in stores as consumers reengage with our inner active retail experience. Our workshop also helped fulfill the increase and digital demand through buy online ship from store or pickup and store options.

Locations effectively added acted as many distribution centers, leveraging labor and optimizing inventory so the reopening of our brick and mortar locations provided advantages and multiple ways.

The enhanced capabilities that we put in place in 2020 to diversify our omnichannel options, including adding and allocation algorithm to optimize geographic positioning have continued to provide critical building block to support our sustained strong e-commerce demand.

This allowed approximately 1 and every 5 digital orders to be made and shipped from the traditional store and this year's first quarter.

As our third priority regarding financial positioning given our improved results and strong balance sheet as.

And as well as our positive business trends.

We are actively evaluating initiatives that would enable a more rapid acceleration of key programs and investment opportunities to aggressively grow our company.

As such we plan to provide more details on investment priorities, including use of capital on our second quarter call.

In closing as I noted at the beginning of this call. We believe the initiatives and investments that were put in place prior to the pandemic and in many cases accelerated during the pandemic are driving improved results, which we continue to expect to continue.

We have developed a meaningful business segment through gift products and occasions that we plan to aggressively expand.

Licensed products continue to be important and we remain strongly positioned with best in class partners.

And we have reopened the vast majority of brick and mortar stores in the U S and U K.

Thus far sales and the current second quarter have remained strong.

Giving us the confidence to increase our profit guidance for the fiscal year as highlighted in this morning's press release.

And build a bear like the rest of the world continues to navigate the pandemic. Our associates have remained focused on fulfilling our mission to add a little more heart to lie.

I'm very appreciative of the care they showed to deliver personal experiences both in store and through digital interactions.

And I'm proud of our organization's ability to remain agile and successfully pivot to drive our strategic plans forward in this uncertain environment.

This includes aggressively evolving our digital capabilities, increasing omnichannel integration and maintaining a flexible real estate portfolio with high lease optionality and diversifying revenue streams to leverage our powerful brand.

Finally, I'm excited to share that we recently sold our $200 million furry friend since the company was established and 1997.

And that is a lot of heart.

Ultimately, it's the consumer connections associated with these experience that have kept disparate brands strong and gives us a great opportunity to grow and expand our business with the goal to deliver long term sustained profitable growth.

Now, let me turn the call over to volume for further discussions on our performance and outlook.

Thanks, Sharon and good morning to everyone and we are pleased with the strong start for year and the robust momentum we have and our business.

These results reflect the affinity consumers have and to build a bear brand and the progress speak of made towards our strategic goals, including leveraging our elevated digital platform and competency to transform our omnichannel capabilities.

We believe the pent up demand and stimulus programs and the U S positively benefited our business.

And throughout the period, the so improving traffic and sales trends and our brick and mortar locations across the U S as the quarter progress.

Our stores and the United Kingdom, and Ireland, where the closed for the majority of the quarter with reopening starting on April 12.

Sales in both locations have been meeting our expectations.

And as Sharon noted, thus far and the second quarter, we have maintained strong momentum.

Moving now to a review of first quarter results for.

Total revenues were $91.7 million, and 96, 7% increase compared to $4 to $6.6 million and the first quarter of fiscal 2020.

For the added perspective compared to the first quarter of 2019, which wasn't impacted by the pandemic total revenues increased 8.7%.

We delivered growth in total revenues, even as our European and Canadian stores were temporarily closed for the majority of the quarter due to cover the restrictions.

Separately, our net store count decreased by 14 stores at the end of the period compared to the prior year due to lease events.

Gross margin profit was significantly higher compared to prior year of strong sales growth of leveraged fixed occupancy expenses.

In fact, the margin and the rate was the highest percentage and build the best history for first quarter results.

The rent expense was lowered our year over year as the benefited for more favorable lease terms debt for Nic.

Gross units starting in 2020 with the onset of the pandemic.

We also saw expansion in merchandise margin.

Also the highest ever during the first quarter driven by strong initial markup and lower promotional activity.

As a reminder, the fiscal 2020 first quarter included full occupancy costs for the 13 weeks, while the only had sales for 6 weeks.

On the full year basis of retail gross margin expanded 750 basis points versus the first quarter of 2019.

SG&A was $35.2 million.

Up $8.5 million from the first quarter of fiscal 2020 driven by increased salary expenses, given the reopening of our store base.

And as a reminder, at the <unk>.

End of the first quarter and 2020, the majority of our workforce and furlough and corporate salaries for the remaining associates has been temporarily reduced.

On the 2 year basis, SG&A as a percent of sales improved by 400 basis points.

We delivered the highest level of pre tax income for the first quarter and build a bear's nearly 25 year history with $13.2 million.

On an adjusted basis pretax income was $12.3 million.

This compares to a pretax loss of $18.7 million and the prior year's quarter and to pretax income of $2.4 million and the first quarter of 2019.

Okay.

Turning to the balance sheet.

We ended the first quarter with cash and cash equivalents of $45.9 million with no borrowings and our credit facility.

Strong business performance and profitability improvement helped drive the $24 million of increase in cash.

Our cash balances, partially benefiting from timing of inventory receipts and defer the rent payments for 2020 obligations. This sort of pushed out of this year to preserve cash during the pandemic.

Also the cash balances benefiting from timing of capital expenditures during the quarter, we spent about $500000 versus $2.8 million and last year's quarter.

Our current plan includes capital expenditures in the range of $5 million to $10 million for the fiscal 2020.1.

The surge and demand across channels and the first quarter caused us to end the period with inventories down $9.5 million.

And the reduction of 17, 8% from the 2021st quarter.

We have accelerated inventory receipts in order to support the anticipated strong demand.

While we have experienced some challenges with our global supply chain. Our goal is to minimize the impact of product and transportation cost increases flow.

Just the disruptions and delays and product shipments.

Okay.

Based on the strong first quarter performance and positive trends and the outlook, we are raising our profit expectations for fiscal 2020, 1 EBITDA and introducing total revenue guidance.

For fiscal 'twenty 'twenty 1 the.

Currently expect EBITDA to be and the range of $28 million to $32 million.

This is an increase from our previous guidance, which was to exceed fiscal 2019 EBITDA of $15.3 million.

Our updated expectations include depreciation and amortization and the range of $13 million to $14 million.

We are also adding inside debt, we expect total revenues for fiscal 2021 to be above fiscal 2019 total revenues of $338.5 million.

Specifically related to our second quarter as noted in our press release same.

Sales trends have remained strong and we expect total revenues to exceed both 2020 and 2019 levels.

As a reminder, in fiscal 2020 E. Commerce was our only channel of revenue for the majority of the period due to temporary store closures.

Combined with the launch of several highly anticipated license products.

We had online growth of 299% compared to the fiscal 2019 quarter.

With that and mind, although we believe e-commerce demand will be strong for the full year and the second quarter, we expect the demand to be essentially flat to 2020, maintaining a triple digit increase over 2019.

This outlook assumes no additional significant negative impact from the pandemic such as the prolonged store closures due to government mandates.

Please keep in mind debt, while we expect to see annualized savings from expense reduction initiatives implemented in fiscal 2020.

Our plans and reflect higher payroll and marketing expenses of salary levels have been reinstated to pre pandemic levels.

For the load employees have returned and marketing activity has expanded to drive sales growth.

In closing, we are pleased with our financial and operational performance and the first quarter and believe the momentum of our business and progress against our initiatives position us well for the remainder of the year.

This concludes our prepared remarks, and we will now turn the call back over to the operator for questions operator.

Thank you at this time, we will conduct a question and answer session. If you would like to ask a question. Please press star 1 on your telephone keypad.

For the confirmation tone will indicate your line is and the question queue.

You May press Star 2 of you would like to remove your question from the queue.

And for participants using speaker equipment and may be necessary to pick up your handset before pressing the Barclays. Once again Thats star 1 at this time, 1 moment, while we pull for first question.

Our first question comes from Eric <unk> with FCC Research. Please proceed.

Good morning congratulations.

Good morning, guys. Thank you.

So.

We're extending back to normal here and the space how do you look at the <unk>.

Potential to eventually add parties for the mix.

And the potential to see gains from movies coming out.

And being part of the mix again.

Thank you Eric.

As we have carefully done throughout the Panther eminent we follow the CDC guidelines.

And balance that with our the our own needs from a business perspective, and the oversight of the safety of our of our guests and our associates.

So.

We're carefully as we would and as we have assessing the party business because of clearly that gathers groups of.

Of children, together and in adults and weighted tested the mindful of that.

I think that where we're looking out into the future. We would expect to see parties, assuming everything stays the same and there's no resurgence of the pandemic I think we'll start to see party trickle back into the system. Later this year, we have not specified date yet.

And it may depend on the size of the store so.

And we'll be rolling them out based on again, the CDC guidelines of distancing and assuring that we can meet the needs as well as not.

At this point other guests that are there to participate and build a bear given our higher demand for natural traffic.

That debt, we can service them appropriately at the same time, so there's a lot of levers at seems so simple just flip the switch and start having parties, but theres a lot of complexity involved and we thus far of Ben.

The diligent and prudent and at a served as well.

On your question and let the movies, we're certainly looking forward to a lot of these films that we've already had as we mentioned we have these best in class license relationships. Some of these films that were planned were planned for 2020, and 2021 and they've been pushed out within the relationships with these guys for a long time, we already have all of the products developed and some cases some of the.

And this is Phil.

We're looking forward to at and I think.

We're just we're going to have to be again mindful I'm not sure of anyone's willing to take the big bet on how many people are going to go out to sea goes straight to the theaters.

Kelly with children, but I think that either way.

Our partners will find and approach and marketing approach that makes the characters appealing and exciting and this is right in our wheelhouse of knowing how to optimize so we're looking forward to that.

Great and 1 more.

The last year at <unk>.

And it was a huge success and when.

From online and stores and at Stifel.

Doing well over a year plus into it for now.

Adam and crossing.

You've sort of you've started to still online and ordered and stores is that kind of progression that we kind of sort of yoga and wearables.

Ill.

Successful at the end do you believe that is kind of what we'll be seeing with animal crossing of do you believe that franchise for us the ability to be something like of pokemon or yoda and has a tremendous long life to it as opposed to kind of a movie which is a little bit shorter.

And we will sometimes the sales or what we call spiky and sometimes they have long tail.

It really depends on the franchise and so.

I can't categorize at all movies at this way or that way.

When the because sometimes the movie itself becomes the franchise Star Wars. The Great example of that for the for Yoda, which is at adjunct products actually of baby Yoda and <unk>.

And to the Star Wars franchise.

<unk> has maintained some of the excitement because of the demand Laurie and continues to.

And you had continued to have new episodes, so as long as.

Lucas film believes that there is potential and opportunity with the main Lori and CRE I think we could expect to see some business associated with with <unk>.

In fact at 1 of our top selling.

Graduation gift this year was a broker with a.

Congratulations 2020 Grad cash so he is very searchable.

The second your second question about animal crossing very different right. It's not that you are sitting waiting to see some piece of entertainment and that that's an always on type.

Type of quote Unquote entertainment and gaming side that people have tremendous affinity for the they relate to these characters and play with them and their own world.

And out of the gate, we were very very pleased with.

With animal crossing and certainly expect that that will have a long tail as well.

So we're <unk>.

Pleased for about both of these types of properties and it's the balance of.

The management of the of the spiky kinds of movies and the relationships with these franchise types of entertainment properties as well as now.

And these great with has turned into being long term relationships with the gaming side like the pokemon and that gives us balance across the licensing side that has aided us and being able to create a smoother curve.

And plan the out years and of better and more effective way.

And now it will annual costs and become a pokemon and <unk> got multiple decades behind at that certainly hard to say, but thus far we're very pleased with it. Thank you for the question.

Great. Thank you and good luck for the rest of the year.

Once again, ladies and gentlemen to ask a question. Please press star 1 on your telephone keypad. Our next question comes from Dave Cannon with Cannon wealth management. Please proceed.

Good morning, guys congratulations.

Thanks, Dave Good morning.

So let me let me add congratulations to some of your team first and I'm not yes.

And 1 on purpose.

I know, John and Chris or.

A big part of helping execute.

I would just like the express my gratitude.

The acknowledgment of their efforts and doing a great job all of you guys.

So first question.

Yes.

Could you how do you guys at.

At this point have a specific initiatives.

<unk> to go after the pet shifting market.

Do you have dedicated product for that.

For durable shell so to speak.

Yes.

We certainly haven't announced anything like that our shared anything like that day, but theres nothing and the public forum concerning that.

Okay. So my question is this some is the sort of initiative that youre eyeballing and isn't.

As in the works.

And then rephrase it.

We haven't announced anything specific about any sort of strategic initiatives concerning pet products and the and the public Forum.

Okay, and then if I can.

Yes.

Similar category would be.

The non fungible tokens.

And that to us.

Now a lot of buzz Halo of site there it seems like.

This is an opportunity for you guys are you evaluating at is this something potentially.

You will.

Look to monetize.

Although we have not shared anything like that and the public forum as well as the happy to tell you that we've spoken with some experts and the arena.

To assess the value of NFC and the way they operate and whether that makes sense for build a bear and build the best at type of assets.

Okay, and then can you give us an update on your <unk>.

E Commerce.

Initiatives.

And as we shared and the January ICR debt, we have expectations to launch what we call the bear builder 3 D.

And the 2021.

Okay and then.

For this of course comes with the last questions here.

So the next 1 is third party retail obviously.

Forced closures and so for us at could not have contributed much.

Can you tell me whats your expectation in terms of the cadence of the ramping back up throughout the year and.

And I believe third party was low at $2.5 million for the quarter, where do you see at ultimately settling when things go back to normal.

And where you wouldn't normally provide specific projections on individual revenue generating areas, but.

The third party retail is in depending on the partner itself. It's in different places and its evolution post Covid, great Wolf Lodge at the already open and doing quite well and of course the.

As of the complete the opposite Carnival cruise line fill is there is still and the process of preparing their ships and I know that they have started to announce some expectations of when they will start going on cruises again, and we would anticipate participating.

And those cruises when they do start to.

Embark.

So we're excited about that and <unk> like to add any color on that day.

John.

Recover and lot of David This is 1 of those asset light the initiatives that we are definitely.

Very well aware of and like we continue to work and try to find the additional partners, but you know again with the Covid delays and <unk>.

<unk> some of these things have slowed down but definitely this is 1 of our highest priorities for the organization.

Okay, I guess the way Im looking at it is even though the quarter was phenomenal.

It was really with very little contribution from third party retail with $2.5 million. What was your what was your peak what I'm driving at is at this is going to be incremental as we work through the year and into next year as things go back to and also what were your peak.

The quarterly revenues and third party retail.

Prior to the pandemic.

I mean, it's a little bit hard to answer the question because you know like really when you.

Initiate some of those relationships and you have some of the initial orders and shipments and the at rolling things out there are some spikes that we are seeing definitely on a full year basis and the past we have seen you know like debt.

That business was pretty big and lot of Thats information's available publicly.

We believe with some of those things as things return back to normal and the strength of Carnival cruise is a big.

A portion of our lineup of.

Total property retail locations of reopens and assuming the have same number of ships sailing debt.

And that we are going to be able to get back to some of those numbers that we had share historically, but and again, you're just going to depend on some of these partners and how well their businesses is a lot of them are and tourist locations.

And so this is where unfortunately, the COVID-19 impacting not as directly but indirectly through some of these partners and as I mentioned, we are going to continue to look at ways to grow this channel through different partners, but again there is nothing more of this I can share at this point and time.

Okay, I'll go back and all of the searches.

The peak was the.

And final.

Items.

And my list here, it's more of a comment for the board.

Even though our stock has gone up quite a bit.

When I assume the at $11 stock price and then back out the cash.

And using 31 million of the EBITDA, where we're trading at like 4 point true 5 times EV to EBITDA Capex is coming down we're positioned to generate very substantial free cash flow to me. It makes sense to actually buy back our stock here and I know psychologically seeing at Gopro.

11, 1 would have a knee jerk reaction and say all and all its up a lot but the <unk>.

<unk> is so low and it would be so.

The value accretive so just a commentary for the board being that I think at this point, we're somewhat over capitalized.

And well positioned and frankly I think your EBITDA guidance is at very low I think youre going to easily exceed at so anyway.

And again congratulations and.

Thank you for your hard work and look forward to the next quarter.

Thank you David Thank you.

Thank you at this time I would like to turn the call back over to management for closing comments.

Thanks, Tim.

And to everyone for joining us today, and we look forward to seeing some of you on zoom during our meeting at the Cowen Conference. Later. This later today and tomorrow during the Fireside chat with da Davidson and have a great day.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.

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Greetings and welcome to build a bear workshop first quarter 2021 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded I would now like to turn the conference over to your host today Ms. Allison Malkin of ICR. Please proceed.

Good morning, Thank you for joining US with me today are Sharon price, John and CEO and point of <unk> CFO for today's call Sharon will begin with the discussion of our first quarter 2021 performance, our strategic initiatives and our outlook for the year. After <unk> will review, our financials and guidance and <unk>.

More detail. We will then open the call to take your questions. We ask that you limit your questions to 1 question and 1 follow up this way we can get to everyone's questions. During this 1 of our call feel free to re queue. If you have further questions members of the media, who maybe on our call today should contact us after this.

Conference call with your questions. Please note the call is being recorded and broadcast live via the Internet. The earnings release is available on the Investor Relations portion of our corporate website, a replay of both our call and webcast will be available later today on the IR site I will remind everyone net.

Forward looking statements are inherently subject to risks and uncertainties actual results could differ materially from those currently anticipated due to a number of factors, including those set forth and the risk factors section in the company's annual report on form 10-K, we undertake no obligation to revise any forward looking.

Statements and now I would like to turn the call over to Sharon.

Good morning, everyone and thank you for joining us today to discuss our results for the first quarter of fiscal 2021, we.

We delivered a record breaking quarter on many levels.

We attribute this in part to the investment and actions that we put in motion prior to the pandemic and in many cases accelerated during the pandemic. These include leveraging the increased fulfillment capacity due to our warehouse reconfiguration and systems upgrades and driving innovation with intense efforts on merchandise and marketing including.

Aggressive positioning of our gift, giving program as well at transforming our omnichannel capabilities supported by our Salesforce partnership.

Overall, we believe that the discipline and relentless focus we've had on executing our strategic plan put us in a position to take advantage of the improving consumer demand that we saw in the quarter.

The quarters results were outstanding on both top and Bottomline, including.

Total revenues of $92 million up 97% from 2020 and up 9% from the fiscal 2019 first quarter.

This includes increases and both our physical stores and digital channels.

We believe the improvement was driven by the strength of the emotional connection that has kept our build a bear brand of desired and relevant brand strong merchandize mix and improved digital marketing program.

While our company benefited from better traffic trends coincide with the timing of the stimulus package and pent up demand as consumers start to reengage and personal experiences.

We delivered a material improvement in conversion rates and our highest level of dollars per transaction and our history, which drove our sales growth.

Notably, we had and 87% increase and ecommerce demand compared to the fiscal 2021st quarter and at 194% increase versus the 2019 period.

This was fueled by a triple digit increase and transactions from new guests and highlighting the effectiveness of our digital marketing campaign.