BuildABear Workshop Inc (BBW)
NYSE:BBW
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BuildABear Workshop
(NYSE:BBW)
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Rating:64Neutral
Price Target:
$40.00
▲(2.43% Upside)
Action:DowngradedDate:04/17/26
BBW scores as moderately attractive primarily on solid financial performance (strong margins, profitability, and positive free cash flow), partially offset by clearly weak technicals (below major moving averages with negative MACD). Valuation is reasonable (mid-teens P/E with a modest yield), while the latest earnings call supports longer-term growth initiatives but highlights near-term earnings pressure and guidance uncertainty from tariffs and digital traffic declines.
Positive Factors
High margins & steady profitability
Build‑A‑Bear maintains durable margin advantage with gross margins near 54–56% and EBIT around 12–14%. High attachment rates for accessories and branded collections support lasting product profitability, enabling reinvestment, marketing and cushion versus cyclical retail pressure.
Negative Factors
Tariff-driven cost pressure
Elevated tariffs are a structural margin headwind that increase COGS and compress operating leverage. The multi‑million dollar, lumpy nature of tariff timing (H1/H2 swings) undermines forecastability, forcing margin mitigation or permanent price/cost changes that hit competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & steady profitability
Build‑A‑Bear maintains durable margin advantage with gross margins near 54–56% and EBIT around 12–14%. High attachment rates for accessories and branded collections support lasting product profitability, enabling reinvestment, marketing and cushion versus cyclical retail pressure.
Read all positive factors
BuildABear Workshop (BBW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$461.83M
Dividend Yield1.52%
Average Volume (3M)488.78K
Price to Earnings (P/E)14.9
Beta (1Y)0.89
Revenue Growth6.73%
EPS Growth4.47%
CountryUS
Employees1,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.26
Shares Outstanding12,580,479
10 Day Avg. Volume331,913
30 Day Avg. Volume488,781
Financial Highlights & Ratios
PEG Ratio2.99
Price to Book (P/B)5.02
Price to Sales (P/S)1.47
P/FCF Ratio19.71
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit1.90
Enterprise Value/Ebitda6.87
Forecast
1Y Price Target
$60.00Price Target Upside53.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.92
Revenue Forecast (FY)$553.89M
BuildABear Workshop Business Overview & Revenue Model
Company Description
Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various s...
How the Company Makes Money
BBW primarily makes money by selling customizable plush products and related merchandise through multiple channels. (1) Retail store sales: Company-operated locations generate revenue from in-store transactions where customers purchase a plush toy...
BuildABear Workshop Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive underlying business trajectory: record full-year revenue and pretax income, meaningful international and wholesale expansion, successful product/IP rollouts, strong in-store execution (record Valentine’s Day), and disciplined capital returns and an orderly leadership succession. However, material near-term headwinds exist — notably tariff-driven cost pressure, e-commerce/SEO traffic declines, Q4 margin compression, higher SG&A and elevated inventory — that have trimmed short-term profitability and introduced uncertainty into 2026 guidance. On balance, the highlights reflect durable momentum and scalable growth initiatives that outweigh the challenges, while the company is actively addressing digital and tariff-related issues.Positive Updates
Record Annual Revenue and Growth
Fiscal 2025 total revenues of $529.8M, up 6.7% year-over-year — first time above $500M for the company; Q4 revenues of $154.5M, up 2.7% year-over-year.
Negative Updates
E‑commerce Traffic and Demand Decline
E-commerce demand decreased 13.6% in Q4 and was down 5.5% for the full year, driven by traffic declines and difficult comparisons to strong licensed launches in the prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Growth
Fiscal 2025 total revenues of $529.8M, up 6.7% year-over-year — first time above $500M for the company; Q4 revenues of $154.5M, up 2.7% year-over-year.
Read all positive updates
Company Guidance
For fiscal 2026 the company is guiding total revenues to grow at a mid‑single‑digit rate (with revenue expected to accelerate through the year and Q1 roughly flat to last year), driven in part by at least 50 net new experience locations (majority partner‑operated/asset‑light) and easier comps/store count benefit in the back half; Commercial revenue is expected to grow at least 20% with significant back‑half weighting. Pretax income is guided to range from a mid‑single‑digit decline to low‑single‑digit growth, reflecting a full estimated $16.0 million tariff and related cost headwind (about $5.0 million incremental vs. 2025 — ~+$8.0 million in H1 and ~‑$3.0 million in H2, assuming the current 10% tariff rate), plus roughly $3.0 million of longer‑range investments for wholesale/international expansion and ICON Park preopening (with any tariff refunds treated as upside).BuildABear Workshop Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 529.83M | 496.40M | 486.11M | 467.94M | 411.52M |
| Gross Profit | 295.63M | 272.52M | 264.39M | 245.87M | 217.96M |
| EBITDA | 81.38M | 81.05M | 79.06M | 75.03M | 62.98M |
| Net Income | 52.20M | 51.78M | 52.80M | 47.98M | 47.27M |
Balance Sheet | |||||
| Total Assets | 345.45M | 289.96M | 272.32M | 280.79M | 266.32M |
| Cash, Cash Equivalents and Short-Term Investments | 26.75M | 27.76M | 44.33M | 42.20M | 32.84M |
| Total Debt | 127.30M | 97.00M | 83.57M | 86.52M | 97.76M |
| Total Liabilities | 190.43M | 150.87M | 142.66M | 161.68M | 175.27M |
| Stockholders Equity | 155.03M | 139.08M | 129.66M | 119.12M | 93.68M |
Cash Flow | |||||
| Free Cash Flow | 39.51M | 27.77M | 46.02M | 33.64M | 19.95M |
| Operating Cash Flow | 65.05M | 47.09M | 64.31M | 47.28M | 28.08M |
| Investing Cash Flow | -25.55M | -19.32M | -18.30M | -13.63M | -8.13M |
| Financing Cash Flow | -40.71M | -44.16M | -43.90M | -25.06M | -22.46M |
BuildABear Workshop Technical Analysis
Neutral
39.05
Price Trends
43.61
Negative
50.98
Negative
53.86
Negative
Market Momentum
-1.68
Negative
46.49
Neutral
42.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBW, the sentiment is Neutral. The current price of 39.05 is above the 20-day moving average (MA) of 38.21, below the 50-day MA of 43.61, and below the 200-day MA of 53.86, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BBW.
BuildABear Workshop Risk Analysis
BuildABear Workshop disclosed 29 risk factors in its most recent earnings report. BuildABear Workshop reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The market price of our common stock has been and may continue to be volatile. Q4, 2025
2.
Our use of artificial intelligence technologies presents operational, reputational, data security and legal risks that could adversely affect our business and financial performance, and any failure to effectively leverage artificial technologies in our business could negatively impact our customer engagement and competitive position. Q4, 2025
3.
Because our business is largely based on a vertical retail model, labor-related matters, ranging from union formation to labor disputes, may adversely affect our operations. Q4, 2025
BuildABear Workshop Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $461.83M | 14.91 | 34.25% | 1.52% | 6.73% | 4.47% | |
64 Neutral | $1.35B | 7.65 | 23.43% | ― | -0.45% | 5.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $223.59M | 0.88 | -77.77% | ― | -9.81% | -2900.45% | |
53 Neutral | $557.25M | -38.47 | -34.47% | ― | 3.73% | 75.76% | |
50 Neutral | $334.39M | 11.58 | -3.56% | ― | 10.09% | 99.49% | |
46 Neutral | $259.06M | -32.20 | -2.64% | ― | 27.00% | 88.21% |
* Consumer Cyclical Sector Average
BBW
BuildABear Workshop
36.94
1.89
5.40%
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BuildABear Workshop Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Build-A-Bear Workshop Announces Planned CEO Leadership Transition
Positive
Mar 12, 2026
On March 12, 2026, Build-A-Bear Workshop announced a planned CEO transition in which longtime President and Chief Executive Officer Sharon Price John will retire from her executive role on June 11, 2026, coinciding with the 2026 annual shareholder...
DividendsFinancial Disclosures
Build-A-Bear Raises Quarterly Dividend, Signals Ongoing Confidence
Positive
Mar 12, 2026
On March 11, 2026, Build-A-Bear Workshop, Inc.’s board declared a quarterly cash dividend of $0.23 per share, up $0.01 from the prior payout, for holders of record as of March 26, 2026. The dividend is scheduled to be paid on April 9, 2026, ...
Business Operations and StrategyExecutive/Board Changes
Build-A-Bear Adds Veteran Retail Leader to Board
Positive
Feb 10, 2026
On February 10, 2026, Build-A-Bear Workshop, Inc. appointed veteran consumer and retail executive James A. Goldman to its Board of Directors, effective immediately, following an extensive search process. Non-Executive Chairman Craig Leavitt said t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.