Comparable sales were down 8.8% during the quarter as the timing of certain holidays impacted the comparison.
Build-A-Bear management says marketing adjustments led to an improvement in traffic.
Retail gross margin fell 130 bps to 47.1% of sales during the quarter.
The company says that there is no timetable for the strategic review currently taking place.
Previously: Build-A-Bear Workshop beats by $0.14, beats on revenue (April 27)
Now read: More on JAKKS Pacific's Q1 »