Build-A-Bear 2026 Q1 Earnings Strong Performance as Net Income Jumps 33.7%

Build-A-Bear (BBW) reported its fiscal 2026 Q1 earnings on Jun 12th, 2025.

Build-A-Bear exceeded market expectations in the first quarter of fiscal 2026, delivering solid financial results. The company reported a significant increase in net income and earnings per share, showcasing its robust performance. Guidance for the upcoming quarters remains in line with previous forecasts, emphasizing confidence in continued growth and strategic execution.

Revenue

Build-A-Bear's total revenue for the first quarter of fiscal 2026 reached $128.40 million, reflecting an 11.9% increase from the previous year. Net retail sales were the primary driver, accounting for $119.59 million, while commercial revenue contributed $7.62 million. Additionally, international franchising added $1.18 million to the total revenues.

Earnings/Net Income

Build-A-Bear's earnings per share (EPS) increased by 42.7% to $1.17 in the first quarter of fiscal 2026, up from $0.82 in the same period of 2025, indicating continuing earnings growth. Net income for the quarter was $15.32 million, representing a 33.7% rise from $11.46 million in the previous year, setting a new record for fiscal Q1 net income in over two decades. The strong EPS performance underscores the company's impressive financial results.

Price Action

The stock price of Build-A-Bear rose by 4.94% during the latest trading day, increased by 8.97% over the past week, and surged by 22.03% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring BBW shares when revenues miss expectations and holding them for 30 days has demonstrated a remarkable overall return of 1557.88%, with a compound annual growth rate (CAGR) of 75.74%. Despite experiencing a maximum drawdown of -39.94%, the strategy maintained a reasonable Sharpe ratio of 1.03, indicating favorable risk-adjusted returns. However, the high volatility, marked by a 73.19% maximum drawdown, highlights the strategy's sensitivity to market fluctuations. The impressive returns, despite the inherent risks, underscore the strategy’s potential but require careful monitoring for optimal execution.

CEO Commentary

Build-A-Bear Workshop, Inc. CEO emphasized the brand's commitment to enriching life experiences, highlighting the ongoing evolution and appeal of its interactive retail model. The company achieved consolidated total revenues of $496.4 million for fiscal 2024, showcasing robust performance driven by its unique customer engagement strategy and expansion into e-commerce. While acknowledging potential market challenges, the CEO expressed confidence in the brand's enduring emotional connection with consumers and its strategic investments aimed at enhancing market positioning and sustaining growth.

Guidance

The company cautioned that future dividends, including potential increases or decreases, are contingent upon decisions made by the Board of Directors. Build-A-Bear indicated that actual results could diverge from forward-looking statements due to various risk factors. It does not guarantee the sustainability of growth, earnings improvement, or future dividend payments, emphasizing the need for investors to consider uncertainties that could impact operational performance and financial outcomes.

Additional News

In recent developments, Build-A-Bear Workshop, Inc. announced its quarterly cash dividend of $0.22 per share, payable on July 10, 2025, to stockholders of record as of June 26, 2025. The company remains committed to returning capital to shareholders while managing strategic growth initiatives. Additionally, Build-A-Bear has been actively repurchasing shares, utilizing $4.2 million in cash to buy back 108,502 common stock shares in the first quarter of fiscal 2025. The company has $85 million remaining under its $100 million stock repurchase program. These moves reflect Build-A-Bear's focus on enhancing shareholder value amidst ongoing market dynamics.