UPDATE 1-Build-A-Bear Q4 lags Street; to cut costs

* Q4 adj EPS lags Street

* Sees charge in 2009 related to closing of Friends 2B

* Announces cost reduction plans

* Sees 2009 capex down 61 pct at about $9 mln * Sees opening 1 store in 2009 vs 25 in 2008

Feb 19 (Reuters) - Stuffed-toys retailer Build-A-Bear Workshop Inc (BBW.N) posted a lower-than-expected fourth-quarter profit, hurt by lower sales in the North American market, and said it was cutting costs and 2009 capital expenditures due to a worsening economy.

The company said its cost reduction efforts would include reduced expenses in advertising, transportation, central office payroll and outside services. Build-A-Bear expects to open only 1 new store in 2009. It earlier expected to open 6 stores.

Build-A-Bear expects annualized pretax savings of $15 million in 2009 from its cost-reduction efforts.

The company also said it expects to record a charge of $1.9 million to $2.3 million related to the closing of its Friends 2B concept.

The retailer, which lets customers make their own stuffed animals, posted fourth-quarter net income of $5 million, or 27 cents a share, on revenue of $142.1 million.

Excluding items, the company posted earnings of 25 cents a share, while analysts on average were expecting earnings of 39 cents a share, according to Reuters Estimates.

Shares of the St. Louis-based company closed at $4.27 Wednesday on the New York Stock Exchange.

For related alerts, double-click [ID:nWNAB4431] . (Reporting by Mihir Dalal in Bangalore; Editing by Pratish Narayanan)