Build-A-Bear's Q1 2025 Earnings Call: Unpacking Contradictions in Inventory, E-Commerce, and Global Strategy

Inventory management and supply chain strategy, e-commerce and omnichannel strategy, inventory management and tariff impact, online sales and omnichannel strategy, international expansion strategy are the key contradictions discussed in Build-A-Bear Workshop's latest 2025Q1 earnings call.



Record Financial Performance:
- Build-A-Bear Workshop reported its best first quarter results in the company's history with record revenue of $128 million, up 11.9%, and EPS of $1.17, up 42.7%.
- The growth was driven by successful execution of the company's long-term strategy, including expanding product categories and consumer reach.

Geographical Expansion:
- The company's international presence expanded to 30% of countries, with 50 net new locations expected in 2025.
- This growth is attributed to strong partnerships and a high level of interest in the brand globally, as evidenced by long lines and enthusiastic support from international partners and franchisees.

Digital Transformation and Inventory Management:
- Build-A-Bear is in the final phase of decommissioning legacy inventory management systems and implementing a new, strategic system with advanced capabilities.
- The new system enhances inventory visibility and data-driven decision-making, contributing to improved sales and operational efficiencies.

Mini Beans Growth:
- The Mini Beans product line expanded by 30% year-over-year, reaching nearly 2 million units sold.
- The increase is attributed to the line's accessible price point and strategic marketing, which has expanded the consumer base and encouraged repeat purchases.