Build-A-Bear (BBW) Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy BBW?
Source: NASDAQ.COM
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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: 37.450
Low
70.00
Averages
70.00
High
70.00
Current: 37.450
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.
Build-A-Bear Partners with Walmart for Limited Edition Collectibles
- First Collaboration: Build-A-Bear Workshop is launching its first wholesale distribution partnership with Walmart, introducing classic full-size tan bears and Mini Beans, marking a new retail channel breakthrough for the company.
- Limited Release: The new collection will be available starting Monday and running through May 15, with customers able to purchase at over 1,500 Walmart stores nationwide and online, expected to attract significant consumer interest.
- Personalized Experience: Customers can select their plush toys and personalize them with outfits and accessories, creating unique characters, which enhances customer engagement and brand loyalty.
- Market Reaction: Although the announcement provided a brief boost to Build-A-Bear's stock price, it did not alter the stock's four-day losing streak, indicating a cautious market response to the collaboration.
See More
Build-A-Bear Launches New Products with Walmart Partnership
- First Wholesale Partnership: Build-A-Bear's inaugural wholesale partnership with Walmart launches Mini Beans™ and Micro Mini Beans™ in over 1,500 stores nationwide, marking a significant distribution milestone that is expected to attract a large number of new customers and enhance brand visibility.
- Personalization Experience: Customers can personalize their plush toys through the 'Choose Me, Name Me, Dress Me' journey, which strengthens the emotional connection between the brand and consumers, thereby enhancing customer loyalty and repeat purchase rates.
- Collectible Toy Trend: The newly launched Micro Mini Beans™ are sold in mystery packs, tapping into consumer demand for collectible toys, which is expected to boost the brand's popularity among younger consumers and promote trading and collecting trends.
- Strong Market Performance: Build-A-Bear reported total revenues of $529.8 million for fiscal 2025, achieving five consecutive years of record results, and this partnership with Walmart is anticipated to further drive sales growth and solidify its leadership position in the retail market.
See More
Build-A-Bear Launches New Products with Walmart Partnership
- First Wholesale Partnership: Build-A-Bear's inaugural wholesale partnership with Walmart launches Mini Beans™ and the Bluey™ collection in over 1,500 stores nationwide, marking a significant distribution milestone that is expected to attract a large number of new customers and enhance brand visibility.
- Personalization Experience: Customers can personalize their plush toys through the 'Choose Me, Name Me, Dress Me' process, which strengthens emotional connections and further solidifies Build-A-Bear's unique position in the toy market.
- Collectible Toy Trend: The newly launched Micro Mini Beans™ are sold in mystery packs, tapping into consumer demand for collectible toys, driving repeat purchases and trading, and promoting the brand's modern collectibility trend.
- Strong Market Performance: Build-A-Bear reported total revenues of $529.8 million for fiscal 2025, achieving record results for the fifth consecutive year, and this partnership with Walmart is expected to further drive guest traffic and sales growth this spring.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- CEO Transition: Build-a-Bear's CEO Sharon Price John hands over the reins to COO Chris Hurt after nearly 13 years, reflecting the company's successful transformation with over 50% revenue growth since 2019 and pre-tax margins expanding from nearly 0% to almost 13%.
- Cash Flow Shift: The company has transitioned from a cash burn of approximately $1.7 million in 2019 to consistently generating free cash flow, having returned $170 million to shareholders through dividends and repurchasing over 4 million shares, effectively reducing its share count by about 25%.
- Apple's Fee Reduction Strategy: Apple lowers its App Store commission fees in China from 30% to 25% and from 15% to 12% for small businesses, expected to save developers over $870 million annually, indicating a defensive posture against regulatory pressures.
- Market Impact: This fee reduction not only benefits high-grossing developers like Duolingo by enhancing their local margins but also potentially mitigates Apple's risk of facing formal antitrust investigations in China, showcasing its adaptability in a challenging market landscape.
See More
Build-A-Bear Reports Q4 2025 Earnings with Record Revenue and Leadership Transition
- Leadership Transition: Build-A-Bear's CEO Sharon John announced her retirement effective June 11, 2026, with COO Chris Hurt set to take over, highlighting a multiyear succession plan that is expected to bring new strategic direction to the company.
- Revenue Milestone: The company achieved over $500 million in annual revenue for the first time in fiscal 2025, marking a 6.7% year-over-year increase, demonstrating the resilience of its business model and growth potential despite challenges from tariffs and declining digital sales.
- International Expansion: Build-A-Bear added 11 new experience locations across 4 continents in the past two years, expanding its international footprint to 36 countries, with plans to open at least 50 new locations in 2026, primarily in a partner-operated model, enhancing its competitive position in the market.
- Digital Sales Challenges: Despite overall revenue growth, e-commerce demand fell by 13.6%, reflecting difficulties in the company's digital transformation, with management acknowledging the need to accelerate infrastructure improvements to meet future market demands.
See More
Build-A-Bear Reports Mixed Q4 Results with Earnings Beat
- Earnings Beat: Build-A-Bear's Q4 GAAP diluted EPS reached $1.26, exceeding the analyst estimate of $1.22, although it declined from $1.62 a year ago, indicating fluctuations in profitability.
- Revenue Miss: Total revenue increased by 2.7% year-over-year to a record $154.5 million, yet fell short of the $155.7 million analyst estimate, reflecting challenges in market demand.
- Significant Cost Pressures: The company reported approximately $6 million in tariffs and related costs, along with $1.2 million in increased medical and labor expenses, leading to a pre-tax income of $21.5 million, or 13.9% of revenue, down from 18.3% last year.
- Leadership Transition: The company announced that CEO Sharon Price John will retire on June 11, 2026, with Chief Operations Officer Chris Hurt set to take over, ensuring stability and continuity during the leadership transition.
See More
Build-A-Bear Partners with Walmart for Limited Edition Collectibles
- First Collaboration: Build-A-Bear Workshop is launching its first wholesale distribution partnership with Walmart, introducing classic full-size tan bears and Mini Beans, marking a new retail channel breakthrough for the company.
- Limited Release: The new collection will be available starting Monday and running through May 15, with customers able to purchase at over 1,500 Walmart stores nationwide and online, expected to attract significant consumer interest.
- Personalized Experience: Customers can select their plush toys and personalize them with outfits and accessories, creating unique characters, which enhances customer engagement and brand loyalty.
- Market Reaction: Although the announcement provided a brief boost to Build-A-Bear's stock price, it did not alter the stock's four-day losing streak, indicating a cautious market response to the collaboration.
See More
Build-A-Bear Launches New Products with Walmart Partnership
- First Wholesale Partnership: Build-A-Bear's inaugural wholesale partnership with Walmart launches Mini Beans™ and Micro Mini Beans™ in over 1,500 stores nationwide, marking a significant distribution milestone that is expected to attract a large number of new customers and enhance brand visibility.
- Personalization Experience: Customers can personalize their plush toys through the 'Choose Me, Name Me, Dress Me' journey, which strengthens the emotional connection between the brand and consumers, thereby enhancing customer loyalty and repeat purchase rates.
- Collectible Toy Trend: The newly launched Micro Mini Beans™ are sold in mystery packs, tapping into consumer demand for collectible toys, which is expected to boost the brand's popularity among younger consumers and promote trading and collecting trends.
- Strong Market Performance: Build-A-Bear reported total revenues of $529.8 million for fiscal 2025, achieving five consecutive years of record results, and this partnership with Walmart is anticipated to further drive sales growth and solidify its leadership position in the retail market.
See More
Build-A-Bear Launches New Products with Walmart Partnership
- First Wholesale Partnership: Build-A-Bear's inaugural wholesale partnership with Walmart launches Mini Beans™ and the Bluey™ collection in over 1,500 stores nationwide, marking a significant distribution milestone that is expected to attract a large number of new customers and enhance brand visibility.
- Personalization Experience: Customers can personalize their plush toys through the 'Choose Me, Name Me, Dress Me' process, which strengthens emotional connections and further solidifies Build-A-Bear's unique position in the toy market.
- Collectible Toy Trend: The newly launched Micro Mini Beans™ are sold in mystery packs, tapping into consumer demand for collectible toys, driving repeat purchases and trading, and promoting the brand's modern collectibility trend.
- Strong Market Performance: Build-A-Bear reported total revenues of $529.8 million for fiscal 2025, achieving record results for the fifth consecutive year, and this partnership with Walmart is expected to further drive guest traffic and sales growth this spring.
See More
Apple Cuts App Store Fees in China Amid Regulatory Pressure
- CEO Transition: Build-a-Bear's CEO Sharon Price John hands over the reins to COO Chris Hurt after nearly 13 years, reflecting the company's successful transformation with over 50% revenue growth since 2019 and pre-tax margins expanding from nearly 0% to almost 13%.
- Cash Flow Shift: The company has transitioned from a cash burn of approximately $1.7 million in 2019 to consistently generating free cash flow, having returned $170 million to shareholders through dividends and repurchasing over 4 million shares, effectively reducing its share count by about 25%.
- Apple's Fee Reduction Strategy: Apple lowers its App Store commission fees in China from 30% to 25% and from 15% to 12% for small businesses, expected to save developers over $870 million annually, indicating a defensive posture against regulatory pressures.
- Market Impact: This fee reduction not only benefits high-grossing developers like Duolingo by enhancing their local margins but also potentially mitigates Apple's risk of facing formal antitrust investigations in China, showcasing its adaptability in a challenging market landscape.
See More
Build-A-Bear Reports Q4 2025 Earnings with Record Revenue and Leadership Transition
- Leadership Transition: Build-A-Bear's CEO Sharon John announced her retirement effective June 11, 2026, with COO Chris Hurt set to take over, highlighting a multiyear succession plan that is expected to bring new strategic direction to the company.
- Revenue Milestone: The company achieved over $500 million in annual revenue for the first time in fiscal 2025, marking a 6.7% year-over-year increase, demonstrating the resilience of its business model and growth potential despite challenges from tariffs and declining digital sales.
- International Expansion: Build-A-Bear added 11 new experience locations across 4 continents in the past two years, expanding its international footprint to 36 countries, with plans to open at least 50 new locations in 2026, primarily in a partner-operated model, enhancing its competitive position in the market.
- Digital Sales Challenges: Despite overall revenue growth, e-commerce demand fell by 13.6%, reflecting difficulties in the company's digital transformation, with management acknowledging the need to accelerate infrastructure improvements to meet future market demands.
See More
Build-A-Bear Reports Mixed Q4 Results with Earnings Beat
- Earnings Beat: Build-A-Bear's Q4 GAAP diluted EPS reached $1.26, exceeding the analyst estimate of $1.22, although it declined from $1.62 a year ago, indicating fluctuations in profitability.
- Revenue Miss: Total revenue increased by 2.7% year-over-year to a record $154.5 million, yet fell short of the $155.7 million analyst estimate, reflecting challenges in market demand.
- Significant Cost Pressures: The company reported approximately $6 million in tariffs and related costs, along with $1.2 million in increased medical and labor expenses, leading to a pre-tax income of $21.5 million, or 13.9% of revenue, down from 18.3% last year.
- Leadership Transition: The company announced that CEO Sharon Price John will retire on June 11, 2026, with Chief Operations Officer Chris Hurt set to take over, ensuring stability and continuity during the leadership transition.
See More
