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BuildABear Workshop Inc (BBW)
NYSE:BBW

BuildABear Workshop (BBW) AI Stock Analysis

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BBW

BuildABear Workshop

(NYSE:BBW)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$55.00
▲(3.58% Upside)
Build-A-Bear Workshop's overall stock score is driven by strong financial performance and positive earnings call sentiment. While technical analysis shows some bearish trends, the company's valuation remains attractive. The reaffirmed guidance and strategic expansion efforts further bolster the stock's outlook.

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 company that specializes in customizable stuffed animals and related products. Founded in 1997, the company operates in the specialty retail sector and offers a unique experience where customers can create personalized stuffed animals in-store and online. Core products include a variety of plush toys, clothing, accessories, and themed collections that cater to various occasions and interests.
How the Company Makes MoneyBuild-A-Bear Workshop generates revenue primarily through the sale of its customizable stuffed animals and associated merchandise. Key revenue streams include in-store sales, online orders, and special events such as birthday parties. The company also benefits from partnerships with various franchises and brands, allowing it to create themed products that attract a wider audience. Seasonal promotions and limited-edition offerings further enhance sales, while the company's loyalty program encourages repeat business, contributing to a stable revenue base.

BuildABear Workshop Earnings Call Summary

Earnings Call Date:Dec 04, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, global expansion, successful product launches, and shareholder returns, but also noted challenges from tariff impacts and increased costs. Overall, the positive aspects, particularly in revenue and expansion, outweighed the negatives.
Q3-2025 Updates
Positive Updates
Record Revenue and Growth
The company reported year-to-date record revenue and pretax income, with fiscal 2025 revenue expected to exceed half a billion dollars for the first time. Revenue for the first nine months grew over 8% to more than $375 million, and pretax income increased by 15% to nearly $46 million.
Global Expansion and New Locations
Significant progress in expanding the retail footprint with 24 net new experience locations, 70% of which were outside the United States, bringing total locations to 651 in 33 countries. The company opened new stores in North America and reentered Germany.
Successful Product Launches and Collaborations
The Mini Beans collection saw over 60% growth in the third quarter alone, and the Halloween collection achieved double-digit growth. The company expanded its Build-A-Bear Hello Kitty and Friends workshop concept.
Strong Black Friday Performance
The company delivered the best Black Friday in its history, with strong conversion rates and higher dollars per transaction.
Shareholder Returns
Returned more than $26 million to shareholders through dividends and buybacks, contributing to over 24% EPS growth for the first three quarters of the fiscal year. Shareholders have received over $160 million since the beginning of fiscal 2021.
Negative Updates
Tariff Impacts
Tariffs and related costs reduced gross profit by about $4 million in the third quarter, impacting pretax income negatively. The company expects additional tariff impacts in the next fiscal year.
Higher Costs and Expenses
SG&A expenses increased due to higher store-level compensation, including medical benefits and higher minimum wage requirements, as well as general inflationary pressures.
Company Guidance
During the third quarter 2025 earnings call, Build-A-Bear Workshop, Inc. reaffirmed its full-year guidance, projecting fiscal 2025 revenue to exceed $500 million for the first time in the company's history, despite facing tariff headwinds. The call highlighted a 3% revenue growth to nearly $123 million, while pretax income decreased by $2 million to $11 million due to a $4 million negative tariff impact. For the first nine months, revenue grew over 8% to $375 million, with a 15% increase in pretax income to $46 million. The company also returned over $26 million to shareholders, contributing to more than 24% EPS growth. With a strong focus on expanding its retail footprint, 24 net new locations were added, bringing the total to 651 across 33 countries. The asset-light commercial segment continued to thrive, projected to grow over 20% for the fourth consecutive year, while the digital transformation efforts are being bolstered by the appointment of a new Senior Vice President of Ecommerce. The company's diversification strategy is further supported by the success of its mini beans collection, nearing 3 million units sold, with 60% growth in the quarter, and a robust licensing strategy with collaborations like Hello Kitty.

BuildABear Workshop Financial Statement Overview

Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
80
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

BuildABear Workshop Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.10
Price Trends
50DMA
52.56
Positive
100DMA
57.43
Positive
200DMA
50.40
Positive
Market Momentum
MACD
1.33
Negative
RSI
67.09
Neutral
STOCH
96.46
Negative
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 53.1 is below the 20-day moving average (MA) of 53.50, above the 50-day MA of 52.56, and above the 200-day MA of 50.40, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 67.09 is Neutral, neither overbought nor oversold. The STOCH value of 96.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBW.

BuildABear Workshop Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$772.87M13.7241.18%1.52%6.16%15.74%
76
Outperform
$1.49B8.0227.54%-0.42%31.64%
55
Neutral
$790.90M-20.30-35.37%-4.90%50.77%
51
Neutral
$262.94M-1.20-67.22%-8.07%-2206.16%
50
Neutral
$323.17M-1.601.38%63.65%
48
Neutral
$404.22M-6.01-13.99%22.58%33.18%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BBW
BuildABear Workshop
59.70
12.58
26.70%
FLWS
1-800 Flowers
4.13
-3.68
-47.12%
SBH
Sally Beauty
15.16
3.98
35.60%
BNED
Barnes & Noble Education
9.49
-0.92
-8.84%
YSG
Yatsen Holding
4.30
-0.47
-9.85%
TDUP
thredUP
6.32
4.85
329.93%

BuildABear Workshop Corporate Events

DividendsBusiness Operations and Strategy
Build-A-Bear Workshop Declares Quarterly Cash Dividend
Positive
Nov 12, 2025

On November 12, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on January 8, 2026, to shareholders of record as of November 26, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial strategy and stakeholder relations.

Dividends
Build-A-Bear Workshop Announces Quarterly Cash Dividend
Positive
Sep 10, 2025

On September 10, 2025, Build-A-Bear Workshop, Inc. announced a quarterly cash dividend of $0.22 per share, payable on October 9, 2025, to shareholders of record as of September 25, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial strategy and stakeholder interests.

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: Dec 09, 2025