Toy Retailer Feels the Impact of Brexit and Data Privacy Laws

  • Build-A-Bear lowers UK trading expectations due to Brexit challenges
  • GDPR laws identified as a factor affecting UK business
  • Non-US sales expected to decrease by 20% compared to last year
  • Full year revenue for North American operations to dip by 2%
  • CEO Sharon Price John cites Brexit and GDPR as challenges

Build-A-Bear has announced that it is lowering its trading expectations for the UK due to significant challenges posed by Brexit. The retailer identified the EU’s General Data Protection Regulation (GDPR) laws as some of the factors causing uncertainty in its UK business. Build-A-Bear CEO, Sharon Price John, said that the shortfall in their year’s results is largely attributed to revenue and profitability challenges in the UK. She added that uncertainty around Brexit has lowered consumer confidence and currency exchange rates, while GDPR has impeded the company’s marketing communications. The retailer now expects sales expectations for the year ending 2 February to be between £261m and £265m, down from a prior forecast of between £265m and £269m.

Factuality Level: 7
Factuality Justification: The article provides relevant information about Build-A-Bear’s trading expectations and the challenges it faces due to Brexit and GDPR. However, it includes some background information that may not be directly necessary for understanding the current situation, and the mention of the ‘riots’ from the previous year could be seen as sensationalism. Overall, the article is mostly factual but could benefit from a more focused approach.
Noise Level: 3
Noise Justification: The article provides relevant information about Build-A-Bear’s trading expectations being affected by Brexit and GDPR, but it could provide more in-depth analysis or context on how these factors specifically impacted the company. It also briefly mentions last year’s promotion incident without providing further details.
Financial Relevance: Yes
Financial Markets Impacted: Build-A-Bear’s stock and related retail stocks
Financial Rating Justification: The article discusses the impact of Brexit uncertainty on Build-A-Bear’s trading expectations, affecting its sales and revenue, which can have an effect on the company’s stock value and potentially other retail stocks in similar industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk