What is Build-A-Bear's gross profit margin?

What is the market's earnings forecast for Build-A-Bear next quarter?

Did Build-A-Bear beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Build-A-Bear year over year?

What were the key takeaways from Build-A-Bear’s earnings call?

What is Build-A-Bear's latest dividend and current dividend yield?

What were the key takeaways from Build-A-Bear's earnings call?

What does Build-A-Bear do and what are its main business segments?

- **Record Q3 Growth**: $122.7M revenue (+2.7% YoY) despite $4M tariff impact, with Mini Beans sales up 60% Q3.
- **Global Expansion**: 24 new stores (70% international), re-entering Germany, and 2026 co-branded Hello Kitty locations.
- **Black Friday Success**: Best in company history, driven by holiday merchandising and 3M+ Mini Beans sold.
- **Tariff Mitigation**: 2026 Chinese tariffs to drop to 20%, plus cost control and price adjustments to offset headwinds.
- **Digital Strategy**: E-commerce YTD down <1%, focusing on omnichannel engagement and AI-driven personalization.

**【CEO Opening Remarks】**
- Q3 2025 revenue reached $122.7 million, up 2.7% YoY, with pretax income of $10.7 million despite $4 million tariff impact.
- Full year guidance reaffirmed for >$500 million revenue, driven by 60+ new store openings and 20%+ growth in commercial segment.
- Mini Beans sales approached 3 million units, with 60% Q3 growth, expanding into independent retailers.
- Black Friday 2025 was the company's best ever, with strong holiday merchandising and marketing efforts.

**【COO Retail Expansion Update】
- 24 net new stores opened in Q3, 70% outside the U.S., bringing total to 651 locations across 33 countries.
- 375 corporately managed stores, 108 franchises, and 168 partner-operated locations, with partner-operated now 25% of total.
- Reentered Germany with 3 stores, and launched co-branded Hello Kitty & Friends workshops in Los Angeles, expanding to American Dream and Mall of America in 2026.

**【CEO Digital & Brand Initiatives】
- Appointed Senior VP of E-commerce to balance e-commerce and in-store experiences, leveraging AI for personalized interactions.
- Mini Beans expanded into thousands of new retail points, with 60% Q3 growth and 2025 sales exceeding 3 million units.
- Halloween collection saw double-digit growth, driven by exclusive Hello Kitty co-branded characters and the new Posable Bat.

**【CFO Financial Review】
- Q3 GAAP net income $10.7 million, down 18% YoY due to tariffs and higher SG&A expenses (45.1% of revenue vs. 43.3% last year).
- Commercial revenue up 15.3% YoY, with Q4 expected to grow >30% to meet >20% full year target.
- Returned $26.1 million to shareholders YTD through dividends and buybacks, with $70 million remaining under repurchase authorization.
- Inventory increased 17% to $83.3 million to mitigate tariff risks and support commercial growth.

**【Q&A Highlights】
- Tariff mitigation: 2026 tariffs on Chinese imports to drop from 30% to 20%, plus cost control and price adjustments.
- Mini Beans success: $10 collectibles driving repeat purchases, with 60% Q3 growth and expansion into independent retailers.
- Promotional strategy: Tight discount management maintained 53.7% gross margin despite tariffs, with focus on high-margin experiences.
- Digital transformation: E-commerce down 10.8% Q/Q due to licensing shifts, but YTD down <1% with focus on omnichannel engagement.
- Global expansion: 30%+ growth in international stores, with Germany re-entry and co-branded locations driving brand awareness.

Build-A-Bear Workshop, Inc. (BBW) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BBW

BBW fundamentals

You can ask Aime