Build-A-Bear Workshop (NYSE:BBW) Posts Earnings Results, Beats Estimates By $0.27 EPS

Build-A-Bear Workshop (NYSE:BBW) released its quarterly earnings results on Thursday. The specialty retailer reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.27, FiscalAI reports. Build-A-Bear Workshop had a net margin of 10.48% and a return on equity of 32.43%. The firm had revenue of $125.27 million during the quarter, compared to analysts’ expectations of $129.45 million.

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 Price Performance

BBW stock opened at $37.15 on Friday. The company has a market capitalization of $467.33 million, a PE ratio of 8.70 and a beta of 1.06. Build-A-Bear Workshop has a 12 month low of $34.08 and a 12 month high of $75.85. The firm’s 50-day moving average is $37.81 and its 200 day moving average is $48.55.

Build-A-Bear Workshop Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Thursday, March 26th were paid a $0.23 dividend. The ex-dividend date of this dividend was Thursday, March 26th. This represents a $0.92 annualized dividend and a yield of 2.5%. 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 Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc grew its position 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 buying an additional 203 shares during the last quarter. Commonwealth Equity Services LLC grew its position in shares of Build-A-Bear Workshop by 7.0% in the 4th quarter. Commonwealth Equity Services LLC now owns 3,392 shares of the specialty retailer’s stock worth $208,000 after buying an additional 221 shares during the last quarter. SkyView Investment Advisors LLC grew its position in shares of Build-A-Bear Workshop by 2.1% in the 2nd quarter. SkyView Investment Advisors LLC now owns 17,065 shares of the specialty retailer’s stock worth $915,000 after buying an additional 356 shares during the last quarter. Deutsche Bank AG boosted its stake in Build-A-Bear Workshop by 3.5% in the 4th quarter. Deutsche Bank AG now owns 10,770 shares of the specialty retailer’s stock worth $660,000 after purchasing an additional 363 shares in the last quarter. Finally, Rafferty Asset Management LLC boosted its stake in Build-A-Bear Workshop by 6.0% in the 2nd quarter. Rafferty Asset Management LLC now owns 7,284 shares of the specialty retailer’s stock worth $376,000 after purchasing an additional 414 shares in the last quarter. 79.30% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the stock. Zacks Research raised shares of Build-A-Bear Workshop from a “strong sell” rating to a “hold” rating in a research note on Tuesday, March 3rd. Weiss Ratings downgraded shares of Build-A-Bear Workshop from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 20th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $60.00 price target on shares of Build-A-Bear Workshop in a research note on Friday. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, Build-A-Bear Workshop presently has an average rating of “Moderate Buy” and a consensus price target 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.