Created an entirely new retail category — experiential retail where kids personalized their own bears. Hit $600 per square foot in sales. The emotional connection and high margins (plush toys cost pennies, sold for $50+) made it a cash machine.
Malls started dying in the 2000s, killing foot traffic. iPads and screens stole kids' attention. The chain became a one-visit novelty with no repeat business. By 2012, eight straight quarters of losses forced founder Maxine Clark out. New CEO Sharon Price John closed 60 underperforming stores, launched true e-commerce and omnichannel, partnered with Disney/Marvel/Star Wars to attract adults, and expanded beyond malls to kiosks and cruise ships.
Total comeback. Revenue hit $468M in 2023, surpassing the 2007 peak. Profit of $48M — exactly reversing the 2012 loss. Stock up 46x from pandemic lows, outperforming Nvidia. Now 40% of sales go to adults.
