Good day ladies and gentlemen, and welcome to the Build-A-Bear Workshop, Inc., Second Quarter Fiscal 2011 Results Conference Call. My name is [Kiana], and I’ll be your operator for today. At this time, all participants are in listen-only mode and later we’ll conduct a question-and-answer session (Operator Instructions). As a reminder, this conference is being recorded for replay purposes. Now I’d like to turn the conference over to your host for today, Ms. Allison Malkin with ICR. Please proceed.

Thank you. Good morning. Thank you for joining us. With me today are Maxine Clark, Chairman and Chief Executive Bear; and Tina Klocke, Chief Operations and Financial Bear. Before I turn the call over to management, I want to remind members of the media who may be on our call today to contact us after this conference call with their questions. We ask that you limit your questions to one question and one follow-up, this way we can get to everyone’s questions during this one-hour call. Feel free to re-queue if you have further questions. Please note that our call is being recorded and broadcast live via the internet. The earnings release is available on the Investor Relations portion of our corporate website and a replay of both our call and webcast will be available later today on the IR site. Before we get started, I will remind everyone that forward-looking statements are inherently subject to risks and uncertainties. Our 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 our Annual Report on Form 10-K, and we undertake no obligation to update or revise any forward-looking statements. Now, I would like to turn the call over to Maxine Clark. Maxine?

Thank you, Allison, and good morning everyone. Thank you for joining us to discuss our second quarter fiscal 2011 results. For our call today, I’ll begin with comments on our second quarter performance and other key initiatives. I’ll also give insight into our product and marketing strategy. As you know John Haugh, our President recently resigned. I’d like to thank John for his contributions to Build-A-Bear Workshop and we wish him well. While we evaluate our future organizational structure we have assigned his responsibilities to other senior leaders of our company all with significant retail and Build-A-Bear Workshop experience. Following my remarks Tina Klocke, the Chief Operations and Financial Bear, will follow our financial results and update you on progress of cost to savings related to our recent consulting project. Then we’ll open the call to take your questions. In the second quarter we grew our total revenue by 9% excluding the impact of foreign exchange, driven by a 7.1% increase in our consolidated comparable store sales. Comp sales were up in both North America and Europe, positive 8.3% and positive 1.3% respectively. While the shift in Easter benefited our second quarter comp by approximately 6%, our sales growth continued positively post Easter. Consolidated comp sales in May and June combined are up approximately 1% with strong margins giving its confidence that we are making solid progress towards our annual goal. Our top line growth also reflects strong e-commerce business up 22.8% in the quarter reflecting the success of web-specific marketing initiatives and our ability to improve conversion and transaction method with an updated technology platform. Our net loss in the quarter was $6.7 million or $0.37 per share, a significant improvement from last year’s second quarter loss of $8.5 million or $0.45 per share. As you know, the second…

Thanks, Maxine and good morning, everyone. Let me start by giving additional details about our second quarter results. For the second quarter, total revenues increased 10.4% to $81.8 million from $74.1 million in the second quarter last year. Excluding the impact of foreign currencies, total revenues increased 9%. Consolidated comparable store sales increased 7.1% with increases in both North America and Europe of 8.3% and 1.3% respectively. International franchise revenue increased to 714,000 from 661,000 last year. We ended the quarter with 70 international franchise stores versus 60 last year. During the quarter, we expanded our international business with a successful opening of our first franchise location in Brazil. We believe that international growth is a key opportunity and are working closely with our franchisees to aggressively move the business forward. Retail gross margin increased 490 basis points in the second quarter to 35.8% from 30.9% last year. This increase was primarily driven by a 130 basis point improvement in merchandize margin and 320 basis points in leverage of fixed occupancy cost. We will continue to refine our sales mix and expect the benefits of our consulting project to allow us to maintain strong merchandised margins in the second half of the year. Total SG&A in the second quarter was $40.5 million or 49.5% of total revenues, compared to $36.4 million or 49.1% of total revenues in 2010. Excluding the consulting project costs, SG&A, as a percent of total revenue was 47.7% in the second quarter. For the quarter, we recorded a tax benefit of $4 million, which compares to a tax benefit of $4.1 million in the second quarter of 2010. For the full year of 2011, we continue to expect our tax rate to be approximately 38%. Net loss in the second quarter was $6.7 million or $0.37…

In conclusion, we feel good about the start to the second half of the year. We are growing our business in our company-owned stores and e-commerce by building synergies between our core product, our partnerships with other world-class brands and through added engagement in and out of our iconic stores. Build-A-Bear Workshop is a powerful global brand, kid’s lover and moms trust us worldwide. We are in a strong financial position to drive growth both domestic and international. Along with our Board of Directors who will continue to evaluate all potential users of our capital, including the repurchase of shares and invest as opportunities arrive in strategic initiatives for the benefit of Build-A-Bear Workshop’s stake holders. With that, I’d like to turn the call over to the operator to begin the question and answer portion of the call.

(Operator Instructions) And our first question comes from Sean McGowan with Needham and Company. Please proceed. Sean McGowan – Needham & Company: Good morning. Thank you. My questions are regarding gross margin. Typically over the years the second quarter is generally the lowest of the four quarters in terms of gross margin as a percentage of sales, do you expect that to be the case this year and how much higher than this level you think they can get?

Hey, Sean it’s, Tina. Sean McGowan – Needham & Company: Hi, Tina.

Last year we ended the year with a gross margin of 40%, and so we believe that we can get to that and hopefully improve a bit upon that with our cost savings initiatives through out our consulting projects. But again in the second quarter, we were able to leverage our fixed overhead expenses, because we had comp growth in that quarter. Sean McGowan – Needham & Company: Okay. So that would imply, then at the margins in some subsequent quarters could be higher than 40, right?

Right. Sean McGowan – Needham & Company: Okay. Thank you.

(Operator Instructions) And our next question comes from the line of Janet Kloppenburg with JJK Research. Please proceed.

Hi everybody.

Hi, Janet.

Hi. I just wanted to ask about Smurfs. It sounds like it’s doing very well and I’m wondering about the inventory availability there and if you think you’ll have enough to meet demand as we go through this period. and then, I think the DVD releases the fourth quarter. Will you be able to meet demand there?

Well, we actually have been to [south] for a couple of weeks, so we’ve been selling it like hot cakes. And while we will have some through the weekend, I’m sure and we have some alternatives to little pickup items add-ons, we’ll have those longer than we’ll have to make here. So it depends on the store, but obviously there is always opportunities somewhere and we have gone into it for the fourth quarter to make a bigger deal of it and we are also bringing in pop-ups for the fourth quarter. So that will be a really nice addition to our assortment.

Okay. And I just wanted to ask about the comp store sales trends in the post Easter period. They were positive. Is that right?

Yes

And were they up to your expectations or did you think that you might have done better if you would had different inventory or different promotions perhaps you could talk a little bit about the post Easter period?

No, I think that we have some inventory challenges in early, coming out of Easter and we had a very strong Easter, and we’re repositioning our inventory, but I think that considering how much better our Easter was than our plan then, it will take some customers out of the market earlier than later. And then in May and June, which we were positive we ended up there was some changes in school holidays and things like that, but June ended on a very strong note and then July is very strong, especially with, since most of it has come out. So July is good and this continues, it seems to continue to build, so we are building back our inventory position and we are feeling good about our business as we go into this part of the year as I said. It’s just getting all the inventories back in line, and also making sure that we the inventory behind the key products that we are featuring for our gap, I mean, the Smurfs has just been fantastic and we’re very excited about how that’s added to our business in the last few weeks.

Great. Thank you so much.

Thanks, Janet.

Thank you.

And we have a follow-up question from the line of Sean McGowan with Needham and Company. Please proceed. Sean McGowan – Needham & Company: It’s actually sort of a multi faceted question about the consulting project and the subsequent cost savings. If you can touch on a couple of things; was there any benefit of the cost savings seen in the second quarter. Similarly where will we see the impact, will it all be in SG&A with some of it being in cost of sales, and is the savings goal that you’re articulating, is that net of the cost of the consultants or is that before taking out that cost?

Okay. So there was just, really just slight benefits not even worthy to call out in Q2 as we started at the latter part of Q2 with the transportation savings that we have gotten and that will be in third and fourth quarter. And what we look at where it will be I would say right now, we’re looking at probably about 40% of the, between the $4 million and $6 million will be related to gross margin and the other portion will be in SG&A expenses, and the $4 million to $6 million are after consulting services. So it’s the net, because we’ve already taken $0.10 or the $3 million in consulting expenses in the first and second quarter. Sean McGowan – Needham & Company: Okay. So of the annuals or annualized as well as the after I mean (inaudible) are similar pay $5 million to save $5 million. Okay, thank you.

(Operator Instructions) As there are no further questions, I’ll turn the call back over to Maxine Clark for closing remarks.

Well, thank you again for joining us, and we look forward to speaking to you again when we report our third quarter results in October. Have a great day.