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olivLaw · US equity research

Build-A-Bear Workshop, Inc. BBW

Retail-Hobby, Toy & Game Shops · SIC 5945 · Vertical: Miscellaneous retail (SIC 594x)

31.54USD+7.39% · 1 dayClose 04 Nov 2026

Build-A-Bear Workshop is a global experiential retailer where customers create personalized plush animals in its own stores, through franchises and through partners, operating 662 locations as of January 31, 2026. In the second quarter of fiscal 2026 total revenues fell to 115.3 million USD, and management lowered its full-year outlook.

At the close of 04 Nov 2026, Build-A-Bear Workshop, Inc. (BBW) stock was 31.54 USD (+7.39% on the day), with market capitalisation 388.6 m USD, P/E 7.8 on diluted EPS of 4.03 USD over the last 12 months, dividend yield 2.95%, beta 1.24, 52-week range 23.36–71.03 USD. Latest reported quarter (Q2 2027): revenue of 115.3 m USD (−7.2% YoY), net income of 8.8 m USD (−29.2% YoY), diluted EPS 0.70 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
388.6 m USD
shares as of 08 Sept 2026
P/E (TTM)
7.8
Diluted EPS TTM 4.03 · TTM to 01 Aug 2026
E/P (TTM)
12.78%
TTM to 01 Aug 2026
Dividend yield
2.95%
Beta (2y)
1.24
Volatility (1y) 59%
52-week range
23.3671.03

Price history

Loading chart…

Technical reading

RSI (14)
72.0
overbought (≥ 70)
Bollinger (20, 2)
21.64 – 30.12
above the upper band · %B 1.17 · band width 32.8%
SMA 50 / 200
26.77 / 36.70
mixed trend
MACD (12, 26, 9)
0.67 / -0.22
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+21.3%−1.1%+22.4 pp—
3 months−9.4%−0.5%−9.0 pp—
6 months−15.1%+4.4%−19.5 pp—
Year to date−48.5%+12.3%−60.8 pp—
1 year−38.3%+13.5%−51.9 pp−13.5%
3 years+22.0%+76.4%−54.4 pp+13.5%
5 years+96.3%+63.7%+32.6 pp—
Max drawdown (1y)
−67.1%
15 Jan 2026 → 21 Oct 2026
Max drawdown (5y)
−69.2%
15 Sept 2025 → 21 Oct 2026
Compound annual growth (5y)
+14.4%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2027 · 01 Aug 2026

Revenue
115.3 m USD
−7.2% YoY
Net income
8.8 m USD
−29.2% YoY
Diluted EPS
0.70
−25.5% YoY
net / operating
7.6% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27
Revenue119.4 m150.4 m128.4 m124.2 m122.7 m154.5 m125.3 m115.3 m
Cost of revenue54.8 m65.3 m55.4 m52.7 m56.9 m69.2 m45.4 m52.8 m
Gross profit64.6 m85.1 m73.0 m71.5 m65.8 m85.3 m79.9 m62.5 m
SG&A51.7 m57.8 m53.6 m56.4 m55.3 m63.9 m56.1 m51.4 m
Depreciation & amortisation3.7 m3.8 m3.7 m3.7 m3.7 m3.9 m4.0 m4.1 m
Pre-tax income13.1 m27.5 m19.6 m15.3 m10.7 m21.5 m23.9 m11.6 m
Income tax3.2 m5.8 m4.3 m3.0 m2.6 m5.2 m5.6 m2.9 m
Net income9.9 m21.7 m15.3 m12.4 m8.1 m16.4 m18.3 m8.8 m
Diluted EPS0.731.62 ≈1.170.940.621.26 ≈1.450.70
Operating cash flow15.2 m ≈19.5 m27.8 m4.2 m ≈8.2 m ≈24.8 m21.2 m4.9 m ≈
Capex3.9 m9.7 m2.9 m3.4 m6.5 m12.7 m6.9 m8.6 m ≈
Dividends paid2.7 m ≈2.7 m2.9 m2.9 m ≈2.9 m ≈2.8 m2.9 m2.9 m ≈
Share repurchases4.8 m ≈8.1 m4.2 m3.1 m ≈10.2 m ≈10.2 m11.5 m5.6 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 41 percentile of its own 27-quarter history (min 5.1, median 8.4, max 431.1; quarters with earnings only).

Fiscal years

Fiscal year20172019202120222023202420252026
Revenue357.9 m336.6 m255.3 m411.5 m467.9 m486.1 m496.4 m529.8 m
Revenue YoY−1.7%unavailableunavailable+61.2%+13.7%+3.9%+2.1%+6.7%
Net income7.9 m-17.9 m-23.0 m47.3 m48.0 m52.8 m51.8 m52.2 m
Net income YoY+474.9%unavailableunavailableunavailable+1.5%+10.0%−1.9%+0.8%
Diluted EPS0.50-1.23-1.542.933.153.653.803.99
Diluted EPS YoY+455.6%unavailableunavailableunavailable+7.5%+15.9%+4.1%+5.0%
net %2.2%-5.3%-9.0%11.5%10.3%10.9%10.4%9.9%
Free cash flow3.3 m-1.7 m8.3 m19.9 m33.6 m46.0 m27.8 m39.5 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 31 Jan 2026

Cash
26.8 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
155.0 m USD
Total assets
345.5 m USD
Debt / equity
unavailable
Current ratio
1.55x
ROE
35.5%
ROA
16.4%
FCF margin
7.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
486.1 m
2025
496.4 m
2026
529.8 m

SEC (XBRL)· 16 Apr 2026verified

Cost of revenue
2024
221.7 m
2025
223.9 m
2026
234.2 m

SEC (XBRL)· 16 Apr 2026verified

Gross profit
2024
264.4 m
2025
272.5 m
2026
295.6 m

SEC (XBRL)· 16 Apr 2026verified

SG&A
2024
199.0 m
2025
206.2 m
2026
229.2 m

SEC (XBRL)· 16 Apr 2026verified

Depreciation & amortisation
2024
13.7 m
2025
14.8 m
2026
15.0 m

SEC (XBRL)· 16 Apr 2026verified

Pre-tax income
2024
66.3 m
2025
67.1 m
2026
67.2 m

SEC (XBRL)· 16 Apr 2026verified

Income tax
2024
13.5 m
2025
15.4 m
2026
15.0 m

SEC (XBRL)· 16 Apr 2026verified

Net income
2024
52.8 m
2025
51.8 m
2026
52.2 m

SEC (XBRL)· 16 Apr 2026verified

Diluted EPS
2024
3.65
2025
3.80
2026
3.99

SEC (XBRL)· 16 Apr 2026verified

Weighted average diluted shares
2024
14.5 m
2025
13.6 m
2026
13.1 m

SEC (XBRL)· 16 Apr 2026verified

Balance sheet · USD

Cash
2024
44.3 m
2025
27.8 m
2026
26.8 m

SEC (XBRL)· 16 Apr 2026verified

Inventories
2024
63.5 m
2025
69.8 m
2026
82.2 m

SEC (XBRL)· 16 Apr 2026verified

Current assets
2024
127.8 m
2025
126.3 m
2026
140.0 m

SEC (XBRL)· 16 Apr 2026verified

Property, plant & equipment, net
2024
55.3 m
2025
59.8 m
2026
70.9 m

SEC (XBRL)· 16 Apr 2026verified

Total assets
2024
272.3 m
2025
290.0 m
2026
345.5 m

SEC (XBRL)· 16 Apr 2026verified

Accounts payable
2024
16.2 m
2025
16.5 m
2026
15.3 m

SEC (XBRL)· 16 Apr 2026verified

Current liabilities
2024
83.7 m
2025
79.4 m
2026
90.6 m

SEC (XBRL)· 16 Apr 2026verified

Equity
2024
129.7 m †
2025
139.1 m †
2026
155.0 m †

SEC (XBRL)· 16 Apr 2026verified

Cash flow · USD

Operating cash flow
2024
64.3 m
2025
47.1 m
2026
65.1 m

SEC (XBRL)· 16 Apr 2026verified

Capex
2024
18.3 m
2025
19.3 m
2026
25.5 m

SEC (XBRL)· 16 Apr 2026verified

Free cash flow
2024
46.0 m ≈
2025
27.8 m ≈
2026
39.5 m ≈

SEC (XBRL)· 16 Apr 2026derived

Investing cash flow
2024
-18.3 m
2025
-19.3 m
2026
-25.5 m

SEC (XBRL)· 16 Apr 2026verified

Financing cash flow
2024
-43.9 m
2025
-44.2 m
2026
-40.7 m

SEC (XBRL)· 16 Apr 2026verified

Dividends paid
2024
22.1 m
2025
11.0 m
2026
11.5 m

SEC (XBRL)· 16 Apr 2026verified

Share repurchases
2024
20.5 m
2025
31.3 m
2026
27.7 m

SEC (XBRL)· 16 Apr 2026verified

Computed indicators

Growth

Revenue growth (YoY)
6.7%
computed by olivLawFY 2026
Revenue CAGR 3Y
4.2%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
15.7%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
0.8%
computed by olivLawFY 2026
Net income CAGR 3Y
2.8%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
5.0%
computed by olivLawFY 2026
EPS CAGR 3Y
8.2%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
42.3%
computed by olivLawFY 2026

Profitability

Gross margin
56.7%
computed by olivLawTTM to 01 Aug 2026
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
10.0%
computed by olivLawTTM to 01 Aug 2026
FCF margin
4.7%
computed by olivLawTTM to 01 Aug 2026

Returns

ROE
32.8%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
ROA
15.8%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
46.7%
computed by olivLawTTM to 01 Aug 2026

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
1.6x
computed by olivLawbalance sheet at 01 Aug 2026
Quick ratio
0.5x
computed by olivLawbalance sheet at 01 Aug 2026
Cash ratio
0.2x
computed by olivLawbalance sheet at 01 Aug 2026

Cash

Operating cash flow
59.2 m USD
computed by olivLawTTM to 01 Aug 2026
Capital expenditure
34.6 m USD
computed by olivLawTTM to 01 Aug 2026
Free cash flow
24.5 m USD
computed by olivLawTTM to 01 Aug 2026
FCF conversion
47.6%
computed by olivLawTTM to 01 Aug 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
133 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Days payables outstanding
27 days
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
388.6 m USD
computed by olivLawbalance sheet at 01 Aug 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
7.5x
computed by olivLawTTM to 01 Aug 2026
P/E (TTM)
7.8x
computed by olivLawTTM to 01 Aug 2026
Earnings yield
12.8%
computed by olivLawTTM to 01 Aug 2026
P/B
2.4x
computed by olivLawbalance sheet at 01 Aug 2026
P/S
0.8x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
15.8x
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
FCF yield
6.3%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Dividend yield
3.0%
computed by olivLawTTM to 01 Aug 2026
Shareholder yield (distributions)
12.6%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 69 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

31.54 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 388.6 m USD

Key indicators

Market capitalisation
388.6 m USD
computed by olivLawbalance sheet at 01 Aug 2026
P/E (TTM)
7.8x
computed by olivLawTTM to 01 Aug 2026
P/B
2.4x
computed by olivLawbalance sheet at 01 Aug 2026
EV/EBITDA
unavailable
input data missing
ROE
32.8%
computed by olivLawTTM to 01 Aug 2026 · balance sheet at 01 Aug 2026
Net margin
10.0%
computed by olivLawTTM to 01 Aug 2026
Revenue growth (YoY)
6.7%
computed by olivLawFY 2026
Dividend yield
3.0%
computed by olivLawTTM to 01 Aug 2026

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 01 Aug 2026
Latest balance sheet date: 01 Aug 2026
Share count (cover of the latest filing), as of: 08 Sept 2026
Source: SEC (XBRL)published 10 Sept 2026
verified 2114derived 170

Score by group

  • Valuation81
  • Returns100
  • Quality56
  • Balance sheet67
  • Growth45

Estimated value range

Low
47.85
USD per share
Mid
57.14
USD per share
High
62.81
USD per share
Price: 31.54 USD
The price is below the range
Potential to the central value: 81.2% (value / price − 1)
Margin of safety: 44.8% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 47.85 – 62.81 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/E47.85 – 62.81 (Mid 57.14)
    6 companies used · median multiple 14.2x · quartiles 11.9x – 15.6x
    ASO, BNED, DKS, ELA, HERE, SIG
  • Dividend discount (DDM)unavailable · input data missing
Multiple comparisons use the SIC vertical: Miscellaneous retail (SIC 594x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 69/100

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality10.0%88 (vs peers)10%
FCF conversion · Quality47.6%25 (on a fixed band)10%
Revenue CAGR 3Y · Growth4.2%35 (on a fixed band)13%
EPS CAGR 3Y · Growth8.2%55 (on a fixed band)13%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet1.6x67 (on a fixed band)7%
P/E (TTM) · Valuation7.8x83 (vs peers)17%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation6.3%79 (on a fixed band)13%
Shareholder yield (distributions) · Returns12.6%100 (on a fixed band)10%
Payout ratio (FCF) · Returns46.7%100 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial67/100 · 1/3 factors with a value
  • Growth45/100 · 2/2 factors with a value
  • Quality56/100 · 2/3 factors with a value
  • Returns100/100 · 2/2 factors with a value
  • Valuation81/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

BUILD-A-BEAR WORKSHOP INC (BBW). Latest full fiscal year: 2026; data up to 2026-08-01.

Figures computed from the financial statements: revenue 529.8 m USD in 2026; YoY growth 6.7%; net margin 10.0%; ROE 32.8%.

The estimated value range is 47.85–62.81 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 57.14 USD, the price of 31.54 USD leaves a potential of 81.2% (value / price − 1) and a margin of safety of 44.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 69/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 10.0%
  • P/E (TTM): 7.8x
  • FCF yield: 6.3%
  • Shareholder yield (distributions): 12.6%
  • Payout ratio (FCF): 46.7%
  • The price is below the estimated value range

What contradicts it

  • FCF conversion: 47.6%

Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.

Versus the vertical median

Miscellaneous retail (SIC 594x) · same industry group (3-digit SIC) · compared with 8 companies

Multiples and returns vs the median

P/E
7.8x
vertical median 14.2x
below median (−44.8%)
EV/EBITDA
—
vertical median 8.4x
P/S
0.8x
vertical median 0.7x
above median (+11.5%)
P/B
2.4x
vertical median 1.6x
above median (+48.6%)
ROE
32.8%
vertical median 13.8%
above median (+137.9%)
Net margin
10.0%
vertical median 4.6%
above median (+117.6%)
EBIT margin
—
vertical median 4.0%
Revenue YoY
6.7%
vertical median 2.8%
above median (+140.7%)
Net debt/EBITDA
—
vertical median 0.9x
Dividend yield
3.0%
vertical median 2.2%
above median (+34.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SIGSignet Jewelers Limited4.9 bn14.819.9%5.2%+1.6%+28% / +56%
ASOAcademy Sports and Outdoors, Inc.4.2 bn11.318.6%6.4%+2.0%+40% / +33%
BNEDBarnes & Noble Education, Inc.457.9 m20.68.3%1.3%+6.5%+41% / −88%
BBWBuild-A-Bear Workshop Inc388.6 m7.832.8%10.0%+6.7%−38% / +22%
ELAEnvela Corporation303.8 m13.632.4%7.6%+33.6%+1% / +167%
HEREHere Group Limited72.2 m7.79.1%10.6%−76.9%−70% / −22%
PEWGrabAGun Digital Holdings Inc.59.9 m—-13.7%-7.0%+3.6%−42% / unavailable
SPWHSportsman’s Warehouse Holdings, Inc.45.4 m—-25.8%-3.9%+1.0%−48% / −76%
DKSDICK'S Sporting Goods, Inc.—15.918.5%4.0%+28.1%−29% / +13%

1- and 3-year price returns: for BBW from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
19.31
Total return -39% · Per year -39%
34.15
Total return 8% · Per year 8%
51.44
Total return 63% · Per year 63%
3 years
18.64
Total return -41% · Per year -16%
37.10
Total return 18% · Per year 6%
61.37
Total return 95% · Per year 25%
5 years
17.99
Total return -43% · Per year -11%
40.30
Total return 28% · Per year 5%
73.22
Total return 132% · Per year 18%
What moves the 3-year price the most
  • Exit P/E± 9.27
  • Net margin± 6.49
  • Annual revenue growth± 5.34
  • Annual dilution± 0.55

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Build-A-Bear Workshop is a global experiential retailer where customers create personalized plush animals in its own stores, through franchises and through partners, operating 662 locations as of January 31, 2026 1. In the second quarter of fiscal 2026 total revenues fell to 115.3 million USD 3, and management lowered its full-year outlook 3.

SWOT

Strengths

  • The brand has high awareness and positive affinity, and the interactive experience builds emotional connection 1.
  • The partner-operated and franchise models are relatively capital light and easier to expand 1.
  • The company has kept profitability and returned capital to shareholders through buybacks and dividends 3.

Weaknesses

  • Sales depend heavily on mall and tourist traffic, which the company does not control 1.
  • Quarterly results fell short of expectations and gross margin declined from occupancy deleverage 3.
  • Liquidity has thinned and capital expenditures rose compared with last year 3.

Opportunities

  • Expansion in wholesale, licensing and non-plush categories could add revenue 1.
  • The market for personalized gifts and special occasions offers room for brand growth 1.
  • Planned openings in new locations and international territories could restart growth 3.

Threats

  • New tariffs and uncertain trade policy could raise costs and compress margins 1.
  • Consumer discretionary spending could decline if the economy weakens 1.
  • Larger competitors with bigger resources could take share, especially in prime locations 1.

Risks

  • Dependence on mall traffichigh

    The company relies on anchor tenants and the popularity of malls, which it cannot control 1.

  • Tariffs and cost of goodshigh

    Imports from Asia expose the company to tariffs that could reduce margins, and refunds remain uncertain 1.

  • Decline in online salesmedium

    E-commerce fell sharply in the second quarter, which could affect the omnichannel strategy 3.

  • Labor costsmedium

    Wage inflation and unionization at some stores could raise operating costs 1.

  • Liquidity and shareholder returnslow

    Buybacks and dividends have reduced cash, and lower profitability could limit these returns 3.

Investment thesis

What would need to be true (bull case)

  • A strong brand and a unique experience could support a sales recovery if traffic stabilizes 1.
  • If wholesale and licensing produce revenue, the company could reduce its dependence on physical stores 1.
  • Profitability has remained solid enough to support buybacks and dividends 3.

What would break the thesis

  • Falling revenue and a lowered outlook suggest demand could stay weak 3.
  • Tariffs and wage pressures could compress margins for an extended period 1.
  • Thin liquidity and higher capital spending could limit financial flexibility 3.

What to watch

  • Trends in online sales and mall trafficQ3 2026
  • Effect of tariffs and IEEPA refunds on cost of goods soldQ3 2026
  • Pace of location openings and performance of the Orlando flagship2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Founded in 1997 as a mall-based specialty retailer, the company sells through three models: corporately managed stores, partner-operated locations and international franchises, all under the Build-A-Bear Workshop brand 1. The core experience involves stuffing, dressing, accessorizing and naming a bear, followed by a Heart Ceremony 1. According to the company, its e-commerce site remains its single largest store 1.

Segments

Direct to consumer (DTC)

The DTC segment covers corporately managed stores in the U.S., Canada, the U.K. and Ireland, plus two e-commerce sites 1. At the end of fiscal 2025 there were 375 corporate stores, and the Discovery format made up 54% of the store base 1.

International franchising

The franchise segment earns royalties and sells furniture and supplies to partners under master agreements by country 1. The network stood at 109 locations on January 31, 2026 1.

Market context

The company operates in the market for personalized gifts and plush toys, which the source describes as multi-billion-dollar 1. Its revenue depends on traffic in malls and tourist destinations 1. Consumer discretionary spending remains a key sensitivity 1.

Demand cooled in the second quarter of fiscal 2026, with total revenues falling to 115.3 million USD 3. The company says it could accelerate location openings if traffic and promotions stabilize 3.

Trends

  • Tariffs on importsheadwind

    The company imports most products from China and Vietnam, and tariffs raise its cost of goods sold 1. Investors can watch whether IEEPA tariff refunds offset these costs 3.

  • Inflation and labor cost pressureheadwind

    Inflation weighed mainly on store labor costs in fiscal 2025, and the company expects these pressures to continue 1. Selective price increases could reduce demand 1.

  • Retailtainment experiencestailwind

    The interactive, personalized concept is being adapted to smaller formats, tourist locations and shop-in-shop partnerships 1. The planned Orlando flagship could show the direction of expansion 3.

  • Shifting shopping behaviormixed

    Online and multichannel sales matter more, yet e-commerce demand fell 15.6% in the second quarter 3. If the omnichannel strategy succeeds, it could offset weaker mall traffic 1.

Competitive position

The sources show that BBW competes with toy stores and large retailers, with apparel and footwear mall retailers, and with movie theaters and amusement parks that compete for guests' time and money 1. Small firms also offer similar make-your-own experiences 1.

Many competitors have longer histories and greater financial and marketing resources, which could reduce the company's market share 1. Online competition with fast, low-cost delivery pressures margins 1.

  • Toy stores and large retailers

    Sell plush and toys and compete for the same gift budget 1.

  • Apparel, footwear and specialty mall retailers

    Compete for the same prime mall locations 1.

  • Plush toy manufacturers

    Sell directly or through retailers, competing in the plush category 1.

  • Small make-your-own bear operators

    Run kiosks or stores offering similar but smaller experiences 1.

News & filings

In the press

The latest news item in our archive is from 01 Sept 2026; the newest SEC filing is from 10 Sept 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / Build-A-Bear Workshop, Inc. · 16 Apr 2026
  2. [2] Form 10-Q, quarter ended 2026-08-01 · SEC / Build-A-Bear Workshop, Inc. · 10 Sept 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Build-A-Bear Workshop, Inc. · 27 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.