Company Reports Q3 Revenue of $122.7M, Below Consensus
Reports Q3 revenue $122.7M, consensus $124.28M. "We are pleased to report record third-quarter and first-nine-months revenue, driven by continued strong store performance in our Direct-to-Consumer segment, and double-digit revenue growth for our Commercial segment. These achievements were further reinforced by opening over 50 net new units on a year-to-date basis, inclusive of our entry into seven additional countries. Based on this, and our continued momentum, we are reaffirming guidance for the year," commented CEO Sharon Price John. "Looking ahead, we remain focused on advancing our long-term strategic initiatives, particularly the global expansion of our partner-operated model, while continuing to navigate a dynamic economic environment." CFO Voin Todorovic added, "The company's most profitable first nine months in our history underscore the durability of our evolved and diversified business model as well as the ability to execute our strategic plan. While the company preemptively mitigated significant tariff impacts during the first half of the year, Q3 marked the first meaningful expenses from tariffs and related costs. We expect this elevated level of impact to continue through the fourth quarter and into the next fiscal year. Nevertheless, we remain confident in our guidance, which accounts for tariff impacts and our focus on disciplined expense management."
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Build-A-Bear Named to Newsweek's 2026 List of America's Greatest Workplaces
- Cultural Honor: Build-A-Bear has been recognized as one of America's Greatest Workplaces for 2026, highlighting the company's exceptional performance in culture, belonging, and community building, which underscores its leadership in the retail sector.
- Employee Feedback: The recognition is based on over 2.7 million employee reviews and more than 120 culture-related performance indicators, reflecting Build-A-Bear's strong advantages in employee satisfaction and work-life balance.
- Global Expansion: With over 650 locations across more than 30 countries, Build-A-Bear demonstrates the successful implementation of its unique corporate culture on a global scale, enhancing the brand's competitive position in the market.
- Strategic Vision: CEO Sharon Price John stated that this honor is not only a recognition of the team but also a reflection of the company's mission, emphasizing the importance of culture in driving long-term organizational success.
Build-A-Bear Named to Newsweek's 2026 List of America's Greatest Workplaces
- Cultural Recognition: Build-A-Bear has been named to Newsweek's 2026 list of America's Greatest Workplaces, highlighting the company's excellence in culture, belonging, and community building, which reflects the strong brand identity established in employees' hearts.
- Employee Engagement: The selection is based on an independent analysis of over 2.7 million employee reviews and 120 culture-related performance indicators, showcasing Build-A-Bear's outstanding performance in employee satisfaction and work-life balance, further enhancing its competitiveness in the retail sector.
- Global Expansion: Build-A-Bear currently operates over 650 locations across more than 30 countries, demonstrating how its unique corporate culture is implemented on a global scale, promoting sustained growth and market influence for the brand.
- Leadership Commitment: Company executives emphasize that culture is not just a statement in a handbook but a daily commitment aimed at creating a workplace where employees can grow and contribute, thereby enhancing employee loyalty and brand value.
The Journey of Build-A-Bear: From Penny Stock to Retail Success
Company Turnaround: Build-A-Bear Workshop has successfully transformed its business under CEO Sharon Price John since 2013, shifting focus to e-commerce and diversifying sales beyond malls, resulting in nearly all stores becoming profitable.
Stock Performance: The company's stock saw significant growth, reaching an all-time high of about $76 in September, with an increase of over 125% in the past two years, despite recent declines due to tariff impacts.
Challenges Ahead: Build-A-Bear faces challenges from tariffs, expecting an $11 million hit for fiscal 2025, and reported a slowdown in customer traffic during the government shutdown, leading to lowered revenue projections.
Unique Selling Proposition: Unlike competitors, Build-A-Bear offers a personalized experience where customers can create their own stuffed animals, which sets it apart in the retail market.
Build-A-Bear Launches New Animated Series KABU, Premiering December 26
- New Series Launch: Build-A-Bear announces the premiere of its new animated series KABU on December 26 on its YouTube channel, featuring 13 episodes designed to convey a message of 'PAWsitivity' through adorable stuffed animal characters, enhancing emotional connections with young audiences.
- Education and Entertainment Fusion: KABU explores challenges in childhood such as friendship, responsibility, and self-doubt through its plush characters, aiming to provide a warm and honest co-viewing experience for parents and children, aligning with Build-A-Bear's core values.
- Global Simultaneous Launch: Alongside the KABU series, a new collection of plush toys inspired by classic characters will be launched, designed in the globally popular 'kawaii' art style, which is expected to attract more consumer attention and boost sales.
- Reinforcing Brand Mission: Build-A-Bear's CEO Sharon Price John states that the KABU series aims to reinforce concepts of friendship, collaboration, and kindness through entertainment, further solidifying the brand's position in the children's market and promoting the transmission of brand values.
Reasons Behind Today's Decline in Build-A-Bear Stock
Sales Growth and Expansion: Build-A-Bear's revenue increased by 2.7% year-over-year to $122.7 million, with the company opening 24 new stores and expanding into seven additional countries, bringing its total store count to 651.
Profit Decline Due to Tariffs: The company's pre-tax income fell by 18% to $10.7 million, primarily due to $4 million in tariff-related costs, leading to a 15% drop in earnings per share to $0.62.
Future Outlook: Despite the challenges posed by tariffs, Build-A-Bear remains optimistic about its long-term strategic initiatives, particularly the global expansion of its partner-operated model.
Investment Considerations: Analysts from Motley Fool Stock Advisor have identified other stocks as better investment opportunities, indicating that Build-A-Bear Workshop is not among their top recommendations.
Build-A-Bear Expands Hello Kitty Workshop to Two New Locations in 2026
- National Expansion Plan: Build-A-Bear's collaboration with Sanrio to open new Hello Kitty workshops at American Dream in New Jersey and Mall of America in Minnesota in early 2026 signifies a strategic expansion in the U.S. market, expected to attract millions of visitors and enhance brand visibility.
- Successful First Location: The initial workshop in Los Angeles quickly became a go-to destination for families and collectors, demonstrating strong consumer demand for this unique experience, which has driven the brand's strategic growth.
- Enhanced Interactive Experience: The new workshops will offer an immersive Hello Kitty-themed experience, including personalized customization and the signature Heart Ceremony, aimed at increasing customer engagement and brand loyalty, thereby solidifying Build-A-Bear's competitive edge in the market.
- Significant Market Potential: As two of the most popular retail and entertainment destinations in the U.S., American Dream and Mall of America are expected to generate substantial foot traffic and sales growth for Build-A-Bear, helping the brand forge deeper emotional connections with multi-generational consumers.
Build-A-Bear Named to Newsweek's 2026 List of America's Greatest Workplaces
- Cultural Honor: Build-A-Bear has been recognized as one of America's Greatest Workplaces for 2026, highlighting the company's exceptional performance in culture, belonging, and community building, which underscores its leadership in the retail sector.
- Employee Feedback: The recognition is based on over 2.7 million employee reviews and more than 120 culture-related performance indicators, reflecting Build-A-Bear's strong advantages in employee satisfaction and work-life balance.
- Global Expansion: With over 650 locations across more than 30 countries, Build-A-Bear demonstrates the successful implementation of its unique corporate culture on a global scale, enhancing the brand's competitive position in the market.
- Strategic Vision: CEO Sharon Price John stated that this honor is not only a recognition of the team but also a reflection of the company's mission, emphasizing the importance of culture in driving long-term organizational success.
Build-A-Bear Named to Newsweek's 2026 List of America's Greatest Workplaces
- Cultural Recognition: Build-A-Bear has been named to Newsweek's 2026 list of America's Greatest Workplaces, highlighting the company's excellence in culture, belonging, and community building, which reflects the strong brand identity established in employees' hearts.
- Employee Engagement: The selection is based on an independent analysis of over 2.7 million employee reviews and 120 culture-related performance indicators, showcasing Build-A-Bear's outstanding performance in employee satisfaction and work-life balance, further enhancing its competitiveness in the retail sector.
- Global Expansion: Build-A-Bear currently operates over 650 locations across more than 30 countries, demonstrating how its unique corporate culture is implemented on a global scale, promoting sustained growth and market influence for the brand.
- Leadership Commitment: Company executives emphasize that culture is not just a statement in a handbook but a daily commitment aimed at creating a workplace where employees can grow and contribute, thereby enhancing employee loyalty and brand value.
The Journey of Build-A-Bear: From Penny Stock to Retail Success
Company Turnaround: Build-A-Bear Workshop has successfully transformed its business under CEO Sharon Price John since 2013, shifting focus to e-commerce and diversifying sales beyond malls, resulting in nearly all stores becoming profitable.
Stock Performance: The company's stock saw significant growth, reaching an all-time high of about $76 in September, with an increase of over 125% in the past two years, despite recent declines due to tariff impacts.
Challenges Ahead: Build-A-Bear faces challenges from tariffs, expecting an $11 million hit for fiscal 2025, and reported a slowdown in customer traffic during the government shutdown, leading to lowered revenue projections.
Unique Selling Proposition: Unlike competitors, Build-A-Bear offers a personalized experience where customers can create their own stuffed animals, which sets it apart in the retail market.
Build-A-Bear Launches New Animated Series KABU, Premiering December 26
- New Series Launch: Build-A-Bear announces the premiere of its new animated series KABU on December 26 on its YouTube channel, featuring 13 episodes designed to convey a message of 'PAWsitivity' through adorable stuffed animal characters, enhancing emotional connections with young audiences.
- Education and Entertainment Fusion: KABU explores challenges in childhood such as friendship, responsibility, and self-doubt through its plush characters, aiming to provide a warm and honest co-viewing experience for parents and children, aligning with Build-A-Bear's core values.
- Global Simultaneous Launch: Alongside the KABU series, a new collection of plush toys inspired by classic characters will be launched, designed in the globally popular 'kawaii' art style, which is expected to attract more consumer attention and boost sales.
- Reinforcing Brand Mission: Build-A-Bear's CEO Sharon Price John states that the KABU series aims to reinforce concepts of friendship, collaboration, and kindness through entertainment, further solidifying the brand's position in the children's market and promoting the transmission of brand values.
Reasons Behind Today's Decline in Build-A-Bear Stock
Sales Growth and Expansion: Build-A-Bear's revenue increased by 2.7% year-over-year to $122.7 million, with the company opening 24 new stores and expanding into seven additional countries, bringing its total store count to 651.
Profit Decline Due to Tariffs: The company's pre-tax income fell by 18% to $10.7 million, primarily due to $4 million in tariff-related costs, leading to a 15% drop in earnings per share to $0.62.
Future Outlook: Despite the challenges posed by tariffs, Build-A-Bear remains optimistic about its long-term strategic initiatives, particularly the global expansion of its partner-operated model.
Investment Considerations: Analysts from Motley Fool Stock Advisor have identified other stocks as better investment opportunities, indicating that Build-A-Bear Workshop is not among their top recommendations.
Build-A-Bear Expands Hello Kitty Workshop to Two New Locations in 2026
- National Expansion Plan: Build-A-Bear's collaboration with Sanrio to open new Hello Kitty workshops at American Dream in New Jersey and Mall of America in Minnesota in early 2026 signifies a strategic expansion in the U.S. market, expected to attract millions of visitors and enhance brand visibility.
- Successful First Location: The initial workshop in Los Angeles quickly became a go-to destination for families and collectors, demonstrating strong consumer demand for this unique experience, which has driven the brand's strategic growth.
- Enhanced Interactive Experience: The new workshops will offer an immersive Hello Kitty-themed experience, including personalized customization and the signature Heart Ceremony, aimed at increasing customer engagement and brand loyalty, thereby solidifying Build-A-Bear's competitive edge in the market.
- Significant Market Potential: As two of the most popular retail and entertainment destinations in the U.S., American Dream and Mall of America are expected to generate substantial foot traffic and sales growth for Build-A-Bear, helping the brand forge deeper emotional connections with multi-generational consumers.
