Build-A-Bear Workshop Inc Reports Q3 Profit Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 04 2025
0mins
Should l Buy BBW?
Source: NASDAQ.COM
Build-A-Bear Workshop Inc's stock fell by 14.11% after crossing down the 5-day SMA, reflecting concerns over its recent financial performance.
The company reported a diluted EPS of 62 cents, exceeding estimates, but revenue growth of 2.7% fell short of expectations. The impact of tariffs has been significant, with net income dropping from $9.9 million to $8.1 million.
This decline raises questions about the company's ability to maintain growth amid ongoing tariff challenges, despite its plans for expansion and revenue growth projections for fiscal 2025.
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Analyst Views on BBW
Wall Street analysts forecast BBW stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 45.710
Low
70.00
Averages
70.00
High
70.00
Current: 45.710
Low
70.00
Averages
70.00
High
70.00
About BBW
Build-A-Bear Workshop, Inc. is an experiential specialty retailer. It creates its own stuffed animals by participating in the stuffing, dressing, accessorizing, and naming of its own teddy bears and other plush toys based on the Company’s own intellectual property and in conjunction with a variety of licenses. Its segments include direct-to-consumer (DTC), commercial, and international franchising. Its DTC segment includes the operating activities of corporately managed stores, other retail-delivered operations and online sales. Its commercial segment includes transactions with other businesses and comprises wholesale sales of merchandise, supplies and fixtures, licensing the Company’s intellectual properties for third-party use, and entertainment activities. Its international franchising segment includes the activities of franchisees who operate store locations in certain countries and includes development fees, sales-based royalties, merchandise, supplies and fixture sales.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Announcement: Build-A-Bear Workshop (BBW) is set to announce its Q4 earnings on March 12 before market open, with investors keenly awaiting its performance and future outlook.
- Earnings Expectations: The consensus EPS estimate stands at $1.22, reflecting a year-over-year decline of 23.3%, indicating potential pressure on profitability that could affect investor confidence.
- Revenue Forecast: The consensus revenue estimate is $155.71 million, representing a 3.5% year-over-year increase, suggesting that despite challenges, BBW has some revenue growth potential that may attract investor interest.
- Historical Performance: Over the past two years, BBW has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, demonstrating a relative stability in its earnings announcements.
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- Earnings Decline: Build-A-Bear reported a net income of $16.40 million for Q4, translating to an EPS of $1.26, down from $21.68 million and $1.62 per share last year, indicating a weakening profitability that may impact investor confidence.
- Revenue Growth: Despite the drop in net income, the company's revenue increased by 2.7% year-over-year to $154.51 million, compared to $150.45 million last year, suggesting some resilience in sales but insufficient to offset the earnings decline.
- Market Reaction Outlook: Given the decline in profitability, the market may adopt a cautious stance towards Build-A-Bear's future performance, potentially leading to stock price volatility, prompting investors to monitor the company's strategic adjustments and market adaptability.
- Increased Competitive Pressure: In an increasingly competitive retail environment, Build-A-Bear must implement effective measures to enhance profitability and market share to address challenges from other toy and retail brands.
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- Oversold Signal: Build-A-Bear Workshop Inc (Ticker: BBW) saw its RSI drop to 29.1 during Wednesday's trading, indicating that its stock price, which hit a low of $43.43, has entered oversold territory, suggesting that recent heavy selling may be exhausting, prompting investors to consider buying opportunities.
- Market Comparison: Compared to the current RSI of 42.4 for the S&P 500 ETF (SPY), BBW's 29.1 RSI indicates relative weakness, potentially attracting investors looking for a rebound.
- Price Fluctuation Range: BBW's 52-week low is $32.55 and its high is $75.85, with the latest trade at $43.49, illustrating its performance within this range and possibly providing investors with a potential buying opportunity.
- Investor Sentiment: Despite the current bearish market sentiment, BBW's oversold condition may signal future rebound opportunities, and investors should closely monitor market dynamics to seize potential entry points.
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- New Collection Launch: Build-A-Bear Workshop introduces the Frosted Animal Cookie Collection, inspired by iconic pink-and-white frosted animal cookies, aiming to attract nostalgic consumers and further solidify its position in the toy market.
- Product Features: The collection includes Frosted Animal Cookie Giraffe and Camel, featuring frosting-inspired colors and sprinkle detailing, transforming the classic snack into huggable plush toys that cater to consumers' emotional connection needs.
- Personalization Options: Guests can personalize their Frosted Animal Cookie plush with a wide selection of clothing and accessories, including a new tutu skirt, dress, and party hat, enhancing the product's appeal and market competitiveness.
- Brand Strategy Alignment: The launch aligns with Build-A-Bear's brand platform, “The Stuff You Love,” emphasizing the celebration of meaningful moments through personalized experiences, which is expected to drive sales growth and enhance brand loyalty.
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- Nostalgia Collection Launch: Build-A-Bear has introduced its new Frosted Animal Cookie Collection, inspired by the iconic pink-and-white frosted cookies, aiming to evoke childhood memories and strengthen emotional connections with consumers through personalized experiences.
- Product Features: The collection includes a Frosted Animal Cookie Giraffe and Camel, featuring frosting-inspired colors and sprinkle detailing, allowing customers to personalize their plush with a wide selection of clothing and accessories, enhancing product appeal.
- Market Positioning: This new line aligns with Build-A-Bear's brand platform, 'The Stuff You Love,' emphasizing emotional connections through meaningful moments and personalized experiences, targeting consumers drawn to nostalgia-inspired designs.
- Sales Channels: The Frosted Animal Cookie Collection is now available at Build-A-Bear locations and online, expected to drive sales growth for fiscal 2024 and further solidify the brand's influence among multi-generational consumers.
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- Nostalgia Collection Launch: Build-A-Bear introduces the Frosted Animal Cookie Collection, inspired by classic pink-and-white frosted cookies, aiming to evoke childhood memories through personalized experiences and strengthen emotional connections with consumers.
- Product Features: The collection includes Frosted Animal Cookie Giraffe and Camel, featuring vibrant colors and soft textures, allowing customers to personalize their plush with a wide range of clothing and accessories, enhancing product appeal.
- Market Positioning: This new line aligns with Build-A-Bear's brand platform, “The Stuff You Love,” emphasizing emotional connections through meaningful moments and personalized experiences, targeting consumers drawn to nostalgia and joyful celebrations.
- Financial Performance: Build-A-Bear reported total revenues of $496.4 million for fiscal 2024, demonstrating the brand's strong appeal across generations and market potential, supporting its ongoing strategic expansion efforts.
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