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BuildABear Workshop
(NYSE:BBW)
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Rating:67Neutral
Price Target:
$27.00
▼(-31.42% Downside)
Action:Reiterated
Date:09/12/26
BBW’s score is driven by strong underlying profitability and an attractive valuation (low P/E with a solid dividend yield). Offsetting these positives are weak technicals (price far below key moving averages with negative MACD) and a mixed-to-negative near-term outlook from the earnings call, including lowered revenue and profit guidance alongside margin and demand pressure.
Positive Factors
Strong Profitability
Build-A-Bear continues to generate strong profitability for specialty retail, indicating that its differentiated customization model and add-on sales support attractive economics. Healthy operating margins and returns provide internal resources for expansion, marketing, and product development over the next several quarters.
Negative Factors
Revenue and Demand Weakness
Broad weakness across revenue, digital demand, and store traffic suggests that recent pressure extends beyond a single product or channel. If customer visits and online conversion remain subdued, lower transactions could constrain sales growth and reduce the operating leverage that supports profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Build-A-Bear continues to generate strong profitability for specialty retail, indicating that its differentiated customization model and add-on sales support attractive economics. Healthy operating margins and returns provide internal resources for expansion, marketing, and product development over the next several quarters.
Read all positive factors
BuildABear Workshop (BBW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$302.56M
Dividend Yield3.9%
Average Volume (3M)477.81K
Price to Earnings (P/E)5.8
Beta (1Y)0.99
Revenue Growth-0.91%
EPS Growth-9.66%
CountryUS
Employees5,500
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)4.04
Shares Outstanding12,319,335
10 Day Avg. Volume288,134
30 Day Avg. Volume477,808
Financial Highlights & Ratios
PEG Ratio2.99
Price to Book (P/B)5.02
Price to Sales (P/S)1.47
P/FCF Ratio19.71
Enterprise Value/Market Cap1.76
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit1.82
Enterprise Value/Ebitda6.47
Forecast
1Y Price Target
$38.50Price Target Upside-2.21% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.45
Revenue Forecast (FY)$510.27M
BuildABear Workshop Business Overview & Revenue Model
Company Description
Build-A-Bear Workshop, Inc. functions as a multi-channel vendor specializing in stuffed toys and their complementary merchandise. The business organizes its operations across three primary divisions: Direct-to-Consumer sales, Commercial activities...
How the Company Makes Money
Build-A-Bear makes money primarily by selling merchandise tied to its customizable plush experience. Its core revenue stream is the sale of plush toys and the attach-rate of higher-margin add-ons—such as outfits, accessories, and customization fea...
BuildABear Workshop Earnings Call Summary
Earnings Call Date:Aug 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Negative
The call presented a mixed-to-negative near-term picture: solid strategic progress (record seasonal performance, product successes, international expansion, brand partnerships, and improved sequential e-commerce trends) is offset by notable operational and financial headwinds (Q2 revenue down 7.2%, e-commerce down 15.6%, gross margin contraction of 340 bps, pre-tax income down 24.1%, reduced full-year revenue and profit guidance, slower-than-expected wholesale development, and tariff-driven cost pressure). Management emphasized confidence in long-term brand strength and strategic initiatives but acknowledged that the company has moderated near-term expectations and faces ongoing traffic and macroeconomic challenges.Positive Updates
Second Quarter and First Half Revenue and Key Figures
Q2 revenue of $115.3 million; first half revenue of $240.6 million. Despite challenges, Q2 represented the company's second-highest second-quarter DTC sales performance in history.
Negative Updates
Year-over-Year Revenue Decline
Total revenues for Q2 declined 7.2% YoY, primarily driven by weakness in direct-to-consumer sales versus a particularly strong prior-year period.
Read all updates
Q2-2026 Updates
Positive
Negative
Second Quarter and First Half Revenue and Key Figures
Q2 revenue of $115.3 million; first half revenue of $240.6 million. Despite challenges, Q2 represented the company's second-highest second-quarter DTC sales performance in history.
Read all positive updates
Company Guidance
Management lowered full‑year revenue guidance to $500–$525 million (from $530–$550M) and cut pre‑tax income guidance to $60–$68 million (from $72–$78M); excluding an approximately $7M IEEPA tariff refund, adjusted pre‑tax income is now expected at $53–$61M. The outlook reflects $10–$11M of tariff‑related costs based on a 12.5% tariff rate, roughly $3M of longer‑term investments, and the decision not to anniversary a multimillion‑dollar Walmart program. They still expect to open at least 50 net new locations this year (12 net added through H1; 674 locations across 37 countries at Q2 end) and see Q3 improving sequentially with Q4 as the strongest quarter. Key trailing metrics disclosed: Q2 revenue $115.3M (−7.2% YoY), H1 revenue $240.6M; Q2 pre‑tax income $11.6M (vs. $15.3M LY), H1 pre‑tax income $35.5M (adjusted H1 pre‑tax $28.5M excl. $7M refund); Q2 gross margin 54.2% (−340 bps); SG&A $51.4M (44.6% of revenue vs 45.4% LY); e‑commerce demand −15.6% YoY while total DTC revenue was +3% vs 2024; cash $14M at quarter end; inventory $81.1M (down ~$0.6M YoY); $8.5M returned to shareholders in the quarter, >5% reduction in share count over 12 months, and $43.2M remaining under the $100M buyback authorization.BuildABear Workshop Financial Statement Overview
Summary
Income Statement
79
Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 517.75M | 529.83M | 496.40M | 486.11M | 467.94M | 411.52M |
| Gross Profit | 293.49M | 295.63M | 272.52M | 264.39M | 245.87M | 217.96M |
| EBITDA | 82.41M | 79.58M | 81.05M | 79.06M | 75.03M | 62.98M |
| Net Income | 51.58M | 52.20M | 51.78M | 52.80M | 47.98M | 47.27M |
Balance Sheet | ||||||
| Total Assets | 334.10M | 345.45M | 289.96M | 272.32M | 280.79M | 266.32M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 26.75M | 27.76M | 44.33M | 42.20M | 32.84M |
| Total Debt | 125.51M | 127.30M | 97.00M | 83.57M | 86.52M | 98.55M |
| Total Liabilities | 175.10M | 190.43M | 150.87M | 142.66M | 161.68M | 172.64M |
| Stockholders Equity | 159.00M | 155.03M | 139.08M | 129.66M | 119.12M | 93.68M |
Cash Flow | ||||||
| Free Cash Flow | 24.54M | 39.51M | 27.77M | 46.02M | 33.64M | 19.95M |
| Operating Cash Flow | 59.18M | 65.05M | 47.09M | 64.31M | 47.28M | 28.08M |
| Investing Cash Flow | -34.64M | -25.55M | -19.32M | -18.30M | -13.63M | -8.13M |
| Financing Cash Flow | -49.66M | -40.71M | -44.16M | -43.90M | -25.06M | -22.46M |
BuildABear Workshop Technical Analysis
Negative
39.37
Price Trends
28.92
Negative
31.00
Negative
38.16
Negative
Market Momentum
-1.03
Negative
33.68
Neutral
9.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBW, the sentiment is Negative. The current price of 39.37 is above the 20-day moving average (MA) of 25.26, above the 50-day MA of 28.92, and above the 200-day MA of 38.16, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 33.68 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBW.
BuildABear Workshop Risk Analysis
BuildABear Workshop disclosed 29 risk factors in its most recent earnings report. BuildABear Workshop reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BuildABear Workshop Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $12.32B | 19.96 | 27.73% | ― | 25.56% | 126.16% | |
67 Neutral | $302.56M | 5.78 | 33.08% | 3.90% | -0.91% | -9.66% | |
66 Neutral | $8.02B | 41.15 | -17.67% | ― | 0.73% | 44.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $3.10B | 16.29 | 11.79% | 6.75% | 30.43% | -44.33% | |
47 Neutral | $69.02M | -2.12 | -39.54% | ― | -21.25% | -5.40% | |
43 Neutral | $172.66M | -1.26 | -63.92% | ― | -10.81% | 33.07% |
* Consumer Cyclical Sector Average
BBW
BuildABear Workshop
23.36
-31.29
-57.26%
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BuildABear Workshop Corporate Events
DividendsFinancial Disclosures
Build-A-Bear Declares Quarterly Dividend, Signals Ongoing Strength
Positive
Sep 9, 2026
On September 9, 2026, Build-A-Bear Workshop, Inc.’s board declared a quarterly cash dividend of $0.23 per share on its common stock, reinforcing the company’s ongoing practice of returning capital to shareholders. The dividend will be ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Build-A-Bear Workshop Terminates Chief Growth Officer Henderson
Negative
Aug 27, 2026
On August 26, 2026, Build-A-Bear Workshop terminated Chief Growth Officer David Henderson’s employment without cause, ending his June 2026 employment and noncompete agreement and offering a separation package that includes cash severance, he...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.