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Buildabear Workshop, Inc. (BBW)
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BuildABear Workshop (BBW) AI Stock Analysis

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BBW

BuildABear Workshop

(NYSE:BBW)

Rating:78Outperform
Price Target:
$58.00
▼(-0.96% Downside)
Build-A-Bear Workshop's strong financial performance and positive earnings call are the most significant factors driving the stock's score. The company's robust growth, effective management, and strategic initiatives outweigh the challenges from tariffs and economic uncertainties. Technical indicators and valuation also support a favorable outlook, while recent corporate events further enhance investor confidence.

BuildABear Workshop (BBW) vs. SPDR S&P 500 ETF (SPY)

BuildABear Workshop Business Overview & Revenue Model

Company DescriptionBuild-A-Bear Workshop (BBW) is a global retail entertainment brand that specializes in the creation of personalized stuffed animals and accessories. Founded in 1997, the company operates in the retail sector, focusing on experiences that allow customers, primarily children and families, to create their own custom plush toys. BBW offers a unique in-store experience where guests can select a stuffed animal, fill it with stuffing, and personalize it with clothing and accessories, making each creation a one-of-a-kind product. In addition to its physical locations, the company also has a robust online platform that enables customers to shop for products and create custom bears from home.
How the Company Makes MoneyBuild-A-Bear Workshop generates revenue through multiple streams, primarily through the sales of its customizable stuffed animals and related accessories. The company operates a franchise model, allowing it to expand its footprint while also earning royalties from franchisees. Key revenue streams include in-store sales, online sales, and special events like birthday parties and workshops. Additionally, BBW has partnerships with various brands and franchises, allowing them to create themed plush toys that appeal to a broader audience, which in turn drives sales. Seasonal promotions and limited-edition products also contribute to revenue, as they create urgency and excitement among consumers. Overall, the company's focus on experiential retail and customization plays a significant role in its ability to attract and retain customers.

BuildABear Workshop Earnings Call Summary

Earnings Call Date:Aug 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance for Build-A-Bear with record-breaking revenue and earnings growth, successful global expansion, and effective digital transformation initiatives. However, challenges from tariffs and potential economic uncertainties pose notable headwinds.
Q2-2025 Updates
Positive Updates
Record Revenue and Earnings Growth
Build-A-Bear reported the best second quarter and first half results in its history, with Q2 revenues growing 11% to over $124 million, pretax income increasing by 33% to over $15 million, and EPS rising by 47% to 94¢. For the first half, revenues grew more than 11% to over $252 million, pretax income increased over 31%, and EPS rose approximately 45%.
Successful Global Expansion
Build-A-Bear opened 14 net new experience locations in Q2, with 86% of them being international, expanding the brand to 32 countries. The company increased its net new unit growth guidance for the year to at least 60 locations from the previous 50.
Strong E-commerce and Digital Transformation
E-commerce demand increased 15.1% due to strong consumer response to key product launches, and digital transformation efforts include social media initiatives that drove omnichannel sales and broadened the consumer base.
Innovative Product Launches
The launch of the mini beans collection contributed to an 80% year-on-year revenue increase for the category, with the successful introduction of new product types and marketing campaigns, such as the fruit stand assortment.
Increased Shareholder Returns
Build-A-Bear returned more than $13 million in capital to shareholders during the first half of the fiscal year through dividends and share repurchases.
Negative Updates
Tariff and Cost Challenges
The company faces significant headwinds, including almost $16 million in additional costs from tariffs and medical and labor expenses. The impact from tariffs is expected to be less than $11 million for fiscal 2025.
Potential Economic Uncertainty
Build-A-Bear acknowledges the potential for economic uncertainty affecting future performance, despite the strong first half results.
Company Guidance
In the second quarter of fiscal 2025, Build-A-Bear Workshop reported record-breaking performance, with revenues increasing by 11% to over $124 million. Pretax income rose by 33% to over $15 million, while earnings per share (EPS) surged by 47% to $0.94. For the first half of the year, revenues grew more than 11% to over $252 million, pretax income increased by over 31% to nearly $35 million, and EPS rose approximately 45% to $2.11. The company returned over $13 million in capital to shareholders during this period. Build-A-Bear also expanded its global footprint, with 14 net new experience locations opened, 86% of which were international, contributing to a total presence in 32 countries. The company increased its 2025 guidance, projecting mid-single to high-single-digit revenue growth and pretax income in the range of $62 to $70 million, despite facing nearly $16 million in headwinds from tariffs and increased costs.

BuildABear Workshop Financial Statement Overview

Summary
Build-A-Bear Workshop presents a compelling financial profile characterized by strong revenue and profit growth, efficient operations, and robust cash flow generation. The company manages its leverage effectively, maintaining a balanced capital structure. While the company shows strengths across financial statements, continuous monitoring of leverage and cash flow sustainability is advised.
Income Statement
85
Very Positive
The income statement reveals strong profitability with a Gross Profit Margin of 55.55% and a Net Profit Margin of 10.91% for TTM (Trailing-Twelve-Months). Revenue has shown consistent growth, with a 4.54% increase in the latest annual period. The EBIT and EBITDA margins are healthy at 13.94% and 16.85% respectively, indicating efficient operations. The company has demonstrated strong revenue growth and profitability improvement over the years.
Balance Sheet
78
Positive
The balance sheet shows a stable financial position with a Debt-to-Equity Ratio of 0.67 for TTM, highlighting a moderate leverage level. The Return on Equity (ROE) is robust at 37.43%, indicating effective utilization of equity. The Equity Ratio stands at 48.23%, suggesting a balanced approach between debt and equity financing. The company maintains a solid equity base while managing debt efficiently.
Cash Flow
80
Positive
The cash flow statement demonstrates strong cash generation with a Free Cash Flow Growth Rate of 61.09% in the latest TTM period. The Operating Cash Flow to Net Income Ratio is 1.16, indicating effective cash management relative to earnings. The Free Cash Flow to Net Income Ratio of 0.80 shows a healthy conversion of earnings into free cash. The company exhibits strong cash flow management and growth.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue510.07M496.40M486.11M467.94M411.52M255.31M
Gross Profit283.34M272.52M264.39M245.87M217.96M97.29M
EBITDA85.92M81.91M79.06M61.94M50.70M-6.88M
Net Income55.65M51.78M52.80M47.98M47.27M-24.61M
Balance Sheet
Total Assets308.30M289.96M272.32M280.79M268.95M261.37M
Cash, Cash Equivalents and Short-Term Investments44.34M27.76M44.33M42.20M32.84M34.84M
Total Debt99.46M97.00M83.57M86.52M97.76M133.86M
Total Liabilities159.62M150.87M142.66M161.68M175.27M195.69M
Stockholders Equity148.68M139.08M129.66M119.12M93.68M65.68M
Cash Flow
Free Cash Flow44.73M27.77M46.02M33.64M19.95M8.34M
Operating Cash Flow64.53M47.09M64.31M47.28M28.08M13.39M
Investing Cash Flow-19.79M-19.32M-18.30M-13.63M-8.13M-5.05M
Financing Cash Flow-38.59M-44.16M-43.90M-25.06M-22.46M-114.00K

BuildABear Workshop Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.56
Price Trends
50DMA
52.81
Positive
100DMA
46.67
Positive
200DMA
43.14
Positive
Market Momentum
MACD
1.54
Negative
RSI
63.79
Neutral
STOCH
65.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBW, the sentiment is Positive. The current price of 58.56 is above the 20-day moving average (MA) of 53.85, above the 50-day MA of 52.81, and above the 200-day MA of 43.14, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBW.

BuildABear Workshop Risk Analysis

BuildABear Workshop disclosed 25 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 0 New Risks

BuildABear Workshop Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$757.12M13.4440.17%1.43%6.09%19.27%
72
Outperform
$1.34B7.6028.94%-0.38%35.78%
63
Neutral
$1.43B-58.93%-10.39%14.92%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
51
Neutral
$896.37M-15.44%11.67%31.55%
50
Neutral
$296.61M-36.88%1.38%63.65%
47
Neutral
$359.13M-42.08%-8.53%-2070.29%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BBW
BuildABear Workshop
58.56
26.99
85.49%
FLWS
1-800 Flowers
5.60
-2.31
-29.20%
SBH
Sally Beauty
14.10
1.11
8.55%
BNED
Barnes & Noble Education
8.72
-4.28
-32.92%
YSG
Yatsen Holding
9.63
6.49
206.69%
TDUP
thredUP
11.49
10.58
1162.64%

BuildABear Workshop Corporate Events

Financial Disclosures
Build-A-Bear Workshop Highlights Financial Metrics to Investors
Neutral
Aug 28, 2025

Build-A-Bear Workshop, Inc. has prepared an investor presentation highlighting certain financial metrics and intends to present this information to investors at various conferences. The company is utilizing non-GAAP financial measures to provide a clearer picture of its operational performance, aiming to facilitate better comparisons across different periods.

Executive/Board Changes
Build-A-Bear Workshop Announces Leadership Transition
Positive
Aug 4, 2025

On August 1, 2025, Build-A-Bear Workshop announced the retirement of Eric Fencl, its Chief Administrative Officer, General Counsel, and Secretary, effective August 4, 2025. Yevgeny Fundler was appointed as the new Chief Legal Officer and Secretary, bringing extensive legal and corporate governance experience to the role. This leadership transition is expected to impact the company’s legal and compliance operations positively, with Mr. Fencl assisting during the transition period until December 5, 2025.

Executive/Board ChangesShareholder Meetings
Build-A-Bear Workshop Holds Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 12, 2025, Build-A-Bear Workshop held its Annual Meeting of Stockholders, where key proposals were voted on. Two directors, Richard Johnson and Craig Leavitt, were elected for three-year terms, and Ernst & Young LLP’s appointment as independent accountants was ratified. Additionally, the stockholders approved the executive compensation plan. Following the meeting, the Board reduced its size to six members after Robert Dixon’s term expired.

Dividends
BuildABear Workshop Declares Quarterly Cash Dividend
Positive
Jun 12, 2025

On June 12, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on July 10, 2025, to shareholders of record as of June 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial operations and stakeholder relations.

Financial Disclosures
Build-A-Bear Workshop Presents Investor Financial Metrics
Neutral
May 29, 2025

Build-A-Bear Workshop, Inc. has prepared an investor presentation highlighting certain financial metrics and non-GAAP measures to provide a clearer picture of its operational performance. This presentation aims to assist current and potential investors in evaluating the company’s performance across different periods, although it is not a substitute for GAAP-compliant results.

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.Date of analysis: Aug 28, 2025