Build-A-Bear Workshop (NYSE:BBW) Announces Quarterly Earnings Results

Build-A-Bear Workshop (NYSE:BBW) announced its quarterly earnings results on Thursday. The specialty retailer reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.64 by $0.06, FiscalAI reports. Build-A-Bear Workshop had a return on equity of 32.15% and a net margin of 10.48%.The firm had revenue of $115.29 million for the quarter, compared to analyst estimates of $120.81 million.

Here are the key takeaways from Build-A-Bear Workshop’s conference call:

• Second-quarter results missed expectations: Revenue fell 7.2% year over year to $115.3 million, while pre-tax income declined 24.1% to $11.6 million, pressured by weaker store traffic, soft e-commerce demand, and underperforming summer trend products.
• Management lowered fiscal 2026 revenue guidance to $500 million–$525 million from $530 million–$550 million and pre-tax income guidance to $60 million–$68 million from $72 million–$78 million. The revision reflects ongoing traffic uncertainty, an expected $10 million–$11 million tariff impact, and the loss of a multimillion-dollar Walmart program.
• Early third-quarter trends improved sequentially, with the Halloween launch producing the company’s highest non-fourth-quarter sales week and stronger traffic and sales than in the first half. Management said products emphasizing customization, dressability, and recognizable characters are resonating better with customers.
• Build-A-Bear remains focused on expansion, targeting at least 50 net new locations in fiscal 2026 after reaching 674 stores across 37 countries, while pursuing wholesale, licensing, gifting, and personalization opportunities. The company also returned $8.5 million to shareholders during the quarter and has reduced its share count by more than 5% over the past year.

Build-A-Bear Workshop Price Performance

Shares of BBW stock opened at $28.45 on Friday. The firm has a 50-day moving average of $34.33 and a 200-day moving average of $38.05. The company has a market cap of $356.83 million, a P/E ratio of 6.66 and a beta of 1.10. Build-A-Bear Workshop has a one year low of $27.50 and a one year high of $75.85.

Build-A-Bear Workshop Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 25th were paid a $0.23 dividend. The ex-dividend date was Thursday, June 25th. This represents a $0.92 annualized dividend and a dividend yield of 3.2%. Build-A-Bear Workshop’s dividend payout ratio is presently 21.55%.

Trending Headlines about Build-A-Bear Workshop

Here are the key news stories impacting Build-A-Bear Workshop this week:

• Positive Sentiment: Fiscal second-quarter diluted EPS was $0.70, above the roughly $0.64 analyst consensus. The company also returned $22.7 million to shareholders through share repurchases during the first half of fiscal 2026. Build-A-Bear Workshop Reports Fiscal Second Quarter 2026 Results
• Neutral Sentiment: Management’s earnings-call commentary highlighted ongoing efforts to manage the retail environment and support the brand, but investors are likely to await evidence that traffic and sales trends are stabilizing. Build-A-Bear Workshop Q2 2026 Earnings Call Transcript
• Negative Sentiment: Second-quarter revenue fell 7.2% year over year to $115.3 million, missing estimates near $121 million. Pre-tax income declined to $11.6 million from $15.3 million, while EPS fell from $0.94 a year earlier despite beating the consensus forecast. Build-A-Bear Stock Sinks as Weak Traffic, Guidance Cut Hit Sentiment
• Negative Sentiment: Build-A-Bear reduced fiscal 2026 revenue guidance to $500 million-$525 million, down from $530 million-$550 million and below the approximately $535.6 million consensus estimate. This was the second outlook reduction this year and points to continued pressure on customer traffic and demand. Build-A-Bear Cuts Outlook, Fires Exec After Sales Fall
• Negative Sentiment: The company also dismissed its chief growth officer. The executive departure, combined with the lowered outlook, reinforced concerns about the retailer’s growth strategy and contributed to the stock’s steep decline. Build-A-Bear Shares on Track for Biggest Drop Ever on Weak Revenue Outlook

Insider Activity

In other Build-A-Bear Workshop news, Director George Carrara sold 3,000 shares of the business’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $34.52, for a total value of $103,560.00. Following the transaction, the director owned 11,277 shares of the company’s stock, valued at approximately $389,282.04. The trade was a 21.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Sharon Price John sold 6,818 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $40.03, for a total transaction of $272,924.54. Following the completion of the transaction, the director directly owned 181,653 shares in the company, valued at $7,271,569.59. This trade represents a 3.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.00% of the stock is currently owned by insiders.

Institutional Trading of Build-A-Bear Workshop

Several hedge funds have recently added to or reduced their stakes in BBW. Kestra Advisory Services LLC bought a new position in shares of Build-A-Bear Workshop during the 4th quarter valued at approximately $28,000. IFP Advisors Inc raised its holdings in shares of Build-A-Bear Workshop by 68.1% in the 3rd quarter. IFP Advisors Inc now owns 501 shares of the specialty retailer’s stock worth $33,000 after purchasing an additional 203 shares during the period. Larson Financial Group LLC lifted its stake in Build-A-Bear Workshop by 453.1% in the third quarter. Larson Financial Group LLC now owns 542 shares of the specialty retailer’s stock valued at $35,000 after purchasing an additional 444 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in Build-A-Bear Workshop in the second quarter valued at approximately $57,000. Finally, Wexford Capital LP bought a new position in Build-A-Bear Workshop during the third quarter valued at $69,000. Institutional investors own 79.30% of the company’s stock.

Analyst Ratings Changes

A number of research firms have commented on BBW. DA Davidson reiterated a “buy” rating and issued a $60.00 price target on shares of Build-A-Bear Workshop in a research report on Friday, May 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of Build-A-Bear Workshop in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $70.00.

Build-A-Bear Workshop Company Profile

Build-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.