Build-A-Bear Workshop Reports Record Growth Amid Expansion

Buildabear Workshop, Inc. ((BBW)) has held its Q3 earnings call. Read on for the main highlights of the call.

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The recent earnings call for Build-A-Bear Workshop, Inc. was marked by a generally positive sentiment, highlighting strong revenue growth, global expansion, successful product launches, and shareholder returns. Despite facing challenges such as tariff impacts and increased costs, the positive aspects, particularly in revenue and expansion, outweighed the negatives, painting an optimistic picture for the company’s future.

Record Revenue and Growth

Build-A-Bear Workshop, Inc. reported record revenue and pretax income year-to-date, with expectations for fiscal 2025 revenue to surpass half a billion dollars for the first time. The first nine months saw revenue growth of over 8%, reaching more than $375 million, while pretax income increased by 15% to nearly $46 million.

Global Expansion and New Locations

The company made significant strides in expanding its retail footprint, adding 24 net new experience locations, 70% of which were outside the United States. This expansion brought the total number of locations to 651 across 33 countries, including new stores in North America and a reentry into the German market.

Successful Product Launches and Collaborations

The Mini Beans collection experienced over 60% growth in the third quarter alone, and the Halloween collection achieved double-digit growth. Additionally, the company expanded its Build-A-Bear Hello Kitty and Friends workshop concept, further enhancing its product offerings.

Strong Black Friday Performance

Build-A-Bear Workshop delivered its best Black Friday performance in history, characterized by strong conversion rates and higher dollars per transaction, underscoring the company’s successful sales strategies.

Shareholder Returns

The company 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. Since the beginning of fiscal 2021, shareholders have received over $160 million.

Tariff Impacts

Tariffs and related costs reduced gross profit by about $4 million in the third quarter, negatively impacting pretax income. The company anticipates additional tariff impacts in the next fiscal year.

Higher Costs and Expenses

SG&A expenses rose due to higher store-level compensation, including medical benefits and higher minimum wage requirements, alongside general inflationary pressures, affecting overall profitability.

Forward-Looking 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, despite facing tariff headwinds. The company is focusing on expanding its retail footprint with 24 net new locations, and its asset-light commercial segment is expected to grow over 20% for the fourth consecutive year. Digital transformation efforts are being strengthened with the appointment of a new Senior Vice President of Ecommerce, while the company’s diversification strategy is bolstered by the success of its mini beans collection and robust licensing collaborations like Hello Kitty.

In conclusion, Build-A-Bear Workshop, Inc.’s earnings call reflected a strong performance with record revenues and strategic expansions, despite some challenges from tariffs and rising costs. The company’s forward-looking guidance remains optimistic, with expectations of surpassing significant revenue milestones and continued growth in its retail and commercial segments.