Build-A-Bear 2026 Q3 Earnings Sets 20-Year Net Income Record Despite 17.7% Decline

jueves, 11 de diciembre de 2025, 8:08 pm ET1 min de lectura

Build-A-Bear (BBW) reported fiscal 2026 Q3 earnings on Dec 11, 2025, with revenue rising 2.7% year-over-year but EPS and net income declining. The company guided full-year revenue higher, while analysts remain bullish, with a $70 price target from CJS Securities.

Revenue

Net retail sales accounted for the lion’s share at $112.27 million, with commercial revenue adding $8.94 million and international franchising contributing $1.47 million. Total revenue reached $122.68 million, driven by growth at existing stores and new locations.

Earnings/Net Income

Build-A-Bear’s EPS declined 16.2% to $0.62, and net income fell 17.7% to $8.12 million. Despite the drop, the quarter marked a record high for fiscal Q3 net income in over two decades. The EPS and net income declines, however, highlight ongoing cost pressures and operational challenges.

Price Action

The stock surged 10.38% in the latest trading week and 9.76% month-to-date, reflecting investor optimism.

Post-Earnings Price Action Review

A strategy of buying

after earnings beats and holding for 30 days delivered a 172.38% return, outperforming the 57.35% benchmark by 115.03%. While the strategy’s CAGR of 27.30% is strong, its 49.95% volatility and 0.55 Sharpe ratio suggest a risk-return profile skewed toward growth over stability.

CEO Commentary

CEO Sharon Price-Kelly credited international e-commerce growth and the “Festive Friends” collection for a 12% online sales boost. She acknowledged supply chain delays in Asia and outlined a $15M AI-driven inventory investment to cut costs. The company plans 20 new Southeast Asia stores by 2027.

Guidance

Build-A-Bear projected full-year 2026 revenue of $520 million, up 9% year-over-year, with EPS guidance of $2.60.

Additional News

CJS Securities initiated coverage with a “Market Outperform” rating and $70 price target, aligning with a 31.38% implied upside. Other analysts adjusted targets to $65–$70, reflecting confidence in BBW’s long-term growth. GuruFocus estimates a $35.27 fair value, signaling potential downside risk.

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