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

Build-A-Bear Workshop (NYSE:BBW) issued its quarterly earnings results on Thursday. The specialty retailer reported $1.03 EPS for the quarter, topping the consensus estimate of $0.76 by $0.27, FiscalAI reports. The company had revenue of $125.27 million for the quarter, compared to the consensus estimate of $129.45 million. Build-A-Bear Workshop had a return on equity of 34.25% and a net margin of 9.85%.

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

• Build-A-Bear reported first-quarter revenue of $125.3 million, down 2.4% year over year, as softer traffic and weak web demand pushed results below expectations. Management also said second quarter will likely be weaker than Q1 before comparisons ease later in the year.
• The company reduced full-year revenue guidance to $530 million-$550 million, but raised pre-tax income guidance to $72 million-$78 million due to tariff-related accounting benefits, while still expecting roughly $10 million of tariff-related cost pressure for the year.
• When customers did engage, spending trends were healthy: dollars per transaction increased thanks to higher units per transaction and price increases. Management said key occasions like Valentine’s Day and Easter performed well, and the brand continues to benefit from birthday-driven traffic through its Pay Your Age program.
• Build-A-Bear’s commercial segment grew 34.1% in Q1, led by wholesale and international franchise revenue, and management reiterated plans for at least 20% full-year growth in that segment. The company also highlighted momentum from Walmart placement, a new Los Angeles wholesale showroom, and continued expansion of its partner-operated model.
• The company continues to lean into its growth pillars, including location expansion, licensing, and nostalgic product launches. It opened seven net new locations in Q1, entered the Philippines to reach 37 countries, and pointed to strong early response for products like Fresh Frosted Animal Cookies, Promise Pets, and Mini Beans, with more seasonal and anniversary launches ahead.

Build-A-Bear Workshop Trading Up 3.2%

Shares of NYSE:BBW opened at $39.02 on Friday. Build-A-Bear Workshop has a 1-year low of $34.08 and a 1-year high of $75.85. The firm has a market capitalization of $490.90 million, a PE ratio of 9.78 and a beta of 1.06. The business’s 50 day moving average is $37.85 and its 200-day moving average is $48.63.

Build-A-Bear Workshop Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Stockholders of record on Thursday, March 26th were issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Thursday, March 26th. This is a boost from Build-A-Bear Workshop’s previous quarterly dividend of $0.22. Build-A-Bear Workshop’s payout ratio is 23.06%.

Institutional Investors Weigh In On Build-A-Bear Workshop

A number of institutional investors have recently added to or reduced their stakes in BBW. AQR Capital Management LLC boosted its holdings in Build-A-Bear Workshop by 10.3% during the first quarter. AQR Capital Management LLC now owns 37,339 shares of the specialty retailer’s stock valued at $1,388,000 after purchasing an additional 3,490 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Build-A-Bear Workshop by 6.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,533 shares of the specialty retailer’s stock valued at $280,000 after buying an additional 456 shares in the last quarter. Jones Financial Companies Lllp acquired a new stake in Build-A-Bear Workshop in the 1st quarter valued at $199,000. Caxton Associates LLP acquired a new stake in Build-A-Bear Workshop in the 1st quarter valued at $267,000. Finally, Rhumbline Advisers boosted its stake in Build-A-Bear Workshop by 2.7% in the 2nd quarter. Rhumbline Advisers now owns 18,728 shares of the specialty retailer’s stock valued at $966,000 after buying an additional 492 shares in the last quarter. 79.30% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have commented on the company. Weiss Ratings downgraded Build-A-Bear Workshop from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, May 20th. Zacks Research raised Build-A-Bear Workshop from a “strong sell” rating to a “hold” rating in a report on Tuesday, March 3rd. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $73.33.

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.