Build-A-Bear CFO Cautions That Tariff Impact Will Persist Through 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Source: Benzinga
Third-Quarter Financial Results: Build-A-Bear Workshop reported a diluted EPS of 62 cents, exceeding estimates, while revenue rose 2.7% to $122.679 million but fell short of expectations. Pre-tax income decreased due to tariff-related costs, and net income dropped from $9.9 million to $8.1 million.
Sales and Growth Metrics: Net retail sales increased by 2.5% to $112.3 million, although e-commerce demand saw a decline of 10.8%. The company opened 24 new locations, bringing the total to 651, and returned $26.1 million to shareholders in the first nine months.
Inventory and Tariff Impact: Inventory rose by 17.7% to $83.3 million, attributed to tariffs and product alignment with tariff-mitigation plans. The company anticipates continued tariff impacts into the next fiscal year.
Future Outlook: Build-A-Bear reaffirmed its fiscal 2025 guidance for mid-to-high-single-digit revenue growth and pre-tax income of $62 million to $70 million, factoring in approximately $11 million in tariff costs.
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Analyst Views on BBW
Wall Street analysts forecast BBW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBW is 70.00 USD with a low forecast of 70.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 59.990
Low
70.00
Averages
70.00
High
70.00
Current: 59.990
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 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.
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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.
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