Build-A-Bear Workshop (BBW) Plunges 15.54% as Analysts Cut Price Targets, Tariffs Weigh on Margins

Build-A-Bear Workshop (BBW) plunged 15.54% in pre-market trading on December 5, 2025, marking one of its sharpest declines amid intensifying market pressures and revised analyst expectations.

Analysts cut price targets for the retailer, with DA Davidson lowering its estimate to $70 from $85 while retaining a “Buy” rating. Meanwhile, a separate firm reduced its target to $65 from $75, reflecting cautious optimism about long-term growth despite near-term challenges.

The selloff was exacerbated by ongoing trade tensions, as CEO Voin Todorovic acknowledged that tariffs are increasingly straining the company’s margins. Preemptive cost management strategies implemented earlier in 2025 proved insufficient to offset the growing impact of higher import costs, which are expected to persist into 2026.

Despite a strong third-quarter performance—driven by social media-driven demand and higher spending from “kidult” customers—investors appear focused on near-term headwinds. The stock’s current price of $48.48 remains below analyst estimates of fair value, though long-term buy ratings suggest confidence in the company’s resilience.

With the market still reeling from the recent selloff and analysts adjusting their outlooks, investors are now watching for the next earnings report to gauge whether Build-A-Bear Workshop can regain its footing in the coming quarters.