ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  general and administrative expenses are excluded as are our web store  and temporary and seasonal locations. See “— Non-GAAP Financial  Measures” for a reconciliation of store contribution to net loss. Store  contribution as a percent of store location net retail sales was 15.8% for  fiscal 2013, 12.7% for fiscal 2012 and 14.7% for fiscal 2011. Total company  net loss as a percentage of total revenues was 0.6% for fiscal 2013, 12.9%  for fiscal 2012 and 4.3% for fiscal 2011.  Our 2013 performance demonstrated progress on our turnaround  plan and our objective to achieve sustainable, long-term profitable  growth as we hired a new chief executive, executed a significant real  estate strategy and implemented stringent cost controls throughout  the organization. In 2012, our results were negatively impacted by the  declining sales in the UK. In North America, the 2012 results reflected  the early results of turnaround efforts, increased costs for marketing,  newly imagined store design remodels and openings and store closings.  In 2011, our results reflected stabilizing economic trends and modest  mall traffic increases but continuing low levels of consumer confidence.  In 2011, our store contribution percentage was essentially flat with  2010, as declining sales were offset by lower store expenses, specifically  payroll and supplies. Our 2014 plan builds on the progress we made in 2013 in implementing  our key strategies. We plan to continue to improve store productivity  and profitability through our real estate optimization efforts, reposition  our marketing programs to refine the consumer value equation and  build on core competencies to lay the groundwork to further leverage  the strength of our Build-A-Bear brand. Additionally we intend to work  aggressively on expense rationalization as we continue to align our cost  structure with our smaller store base and value engineer our products,  along with an end to end review of our supply chain. In 2013, we reduced cost of sales and selling, general and administrative  expenses by $14 million, including one-time charges. These savings  resulted from our real estate optimization strategies, aligning overhead  costs with a smaller store base and continued aggressive expense  rationalization. This comes after savings of $25 million in 2009, $3  million in 2011 and $7.5 million in 2012. We ended fiscal 2013 with no  borrowings under our bank loan agreement and with $45 million in  cash and cash equivalents after investing $19 million in capital projects. Following is a description and discussion of the major components of  our statement of operations:  Revenues  Net retail sales:  Net retail sales are revenues from retail sales (including  our web store and other non-store locations), are net of discounts,  exclude sales tax, include shipping and handling costs billed to  customers, and are recognized at the time of sale. Revenues from gift  cards are recognized at the time of redemption. Our guests use cash,  checks, gift cards and third party credit cards to make purchases. We  classify stores as new, non-comparable and comparable stores. Stores  enter the comparable store calculation in their thirteenth full month  2013 FORM 10-K 17 BUILD-A-BEAR WORKSHOP, INC.  We believe that we have an appealing retail store concept that, for  North American stores open for the entire year, averaged $1.1 million  in fiscal 2013, and $1.0 million in fiscal 2012 and 2011in net retail sales  per store. Consolidated store contribution consists of store location net  retail sales less cost of product, marketing and store related expenses.  Store depreciation, amortization and impairment and non-store  For a discussion of the key trends and uncertainties that have affected  our revenues, income and liquidity, see the “— Revenues,” “— Costs and  Expenses” and “— Stores” subsections of this Overview, along with the  "Risk Factors" and "Results of Operations."  Selected financial data attributable to each segment for fiscal 2013,  2012 and 2011, are set forth in Note 16 to our consolidated financial  statements included elsewhere in this Annual Report on Form 10-K.  • Retail – Company-owned retail stores located in the United States,  Canada, Puerto Rico, the United Kingdom and Ireland, and a web  store; • International Franchising – Other international stores operated  under franchise agreements; and • Commercial – Transactions with other business partners, mainly  comprised of wholesale product sales and licensing our intellectual  property, including entertainment properties, for third-party use. We operate in three segments that share the same infrastructure,  including management, systems, merchandising and marketing, and  generate revenues as follows:  We are the only global company that offers an interactive “make  your own stuffed animal” retail entertainment experience under the  Build-A-Bear Workshop brand, in which our guests stuff, fluff, dress,  accessorize and name their own teddy bears and other stuffed animals.  As of December 28, 2013, we operated 323 Company-owned stores and  had 86 franchised stores operating in international locations under  the Build-A-Bear Workshop brand. In addition to our stores, we sell our  products on our e-commerce Web site, buildabear.com. Overview  The following Management’s Discussion and Analysis of Financial  Condition and Results of Operations contains forward-looking  statements that involve risks and uncertainties. Our actual results  may differ materially from the results discussed in the forward-looking  statements. Factors that might cause such a difference include, but  are not limited to, those discussed in “Risk Factors” and elsewhere in  this Annual Report on Form 10-K. The following section is qualified in  its entirety by the more detailed information, including our financial  statements and the notes thereto, which appears elsewhere in this  Annual Report on Form 10-K. 