Build-A-Bear Stock Soars Over 23%, Despite Fourth Quarter Results Missing Expectations

Build-A-Bear Workshop Inc. (NYSE:BBW) reported its fourth-quarter earnings on Thursday that fell short of analyst expectations.

Nevertheless, the company’s stock surged 23.5% in pre-market trading as investors focused on record-breaking full-year results and the growth guidance for fiscal 2026.

The specialty retailer announced an adjusted quarterly earnings per share of $1.26, below the consensus estimate of $1.28. Revenue reached a record $154.5 million in the quarter, up 2.7% year-over-year but below the expected $156.33 million.

This quarter’s performance was impacted by approximately $6 million in tariffs and related costs. Net retail sales were $139.5 million, unchanged from the same period last year, while business and international franchise revenue combined soared 37.5% to $15.1 million.

For the full fiscal year 2025, Build-A-Bear achieved record results, with revenue reaching $529.8 million, a 6.7% increase year-over-year, and adjusted earnings per share hitting a record $3.99, up from $3.80 last year. The company absorbed about $11 million in tariffs and related costs throughout the year while maintaining strong profitability.

President and CEO Sharon Price John stated, “We are pleased to report solid revenue growth for the year, driven by the comprehensive growth across our three operating segments. Looking ahead, with strong plans and key infrastructure in place, and having surpassed the $500 million revenue milestone this fiscal year, we are focused on further leveraging our success and brand strength to drive additional growth.”

For fiscal 2026, Build-A-Bear expects total revenue to grow in the mid-single digits. Pre-tax income is projected to decline in the mid-single digits to low single digits, including approximately $16 million in tariffs and related costs.

The company also anticipates opening at least 50 net new experience stores and achieving at least 20% growth in commercial revenue.

In fiscal 2025, the company returned $39.0 million to shareholders through share repurchases and dividends, and increased quarterly dividends by 4.5% to $0.23 per share.

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