Buildabear Workshop, Inc. (BBW)
NYSE:BBW
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BuildABear Workshop
(NYSE:BBW)
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Rating:70Outperform
Price Target:
$42.00
▲(7.55% Upside)
Action:Upgraded
Date:05/28/26
Overall score reflects strong underlying financial performance (profitability and cash generation) as the primary support. Offsetting factors are a weaker longer-term technical trend and mixed near-term outlook from the earnings call (reduced revenue guidance and expected softer Q2), while valuation and shareholder returns provide additional support.
Positive Factors
High gross margins & steady profitability
Sustainably high gross and operating margins give Build‑A‑Bear structural earnings resilience. Strong product economics support reinvestment in experiential stores, fund dividends/buybacks, and absorb cost shocks, enabling durable profitability and high ROE over multiple years.
Negative Factors
Revenue volatility & lowered guidance
Management trimmed revenue outlook after Q1 softness, highlighting volatility in top‑line trends. Lower near‑term visibility and back‑half weighting complicate investment pacing and operational planning, increasing execution risk for expansion and margin targets over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins & steady profitability
Sustainably high gross and operating margins give Build‑A‑Bear structural earnings resilience. Strong product economics support reinvestment in experiential stores, fund dividends/buybacks, and absorb cost shocks, enabling durable profitability and high ROE over multiple years.
Read all positive factors
BuildABear Workshop (BBW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$451.89M
Dividend Yield1.52%
Average Volume (3M)381.35K
Price to Earnings (P/E)8.0
Beta (1Y)0.90
Revenue Growth3.26%
EPS Growth2.53%
CountryUS
Employees1,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)3.99
Shares Outstanding12,580,479
10 Day Avg. Volume492,287
30 Day Avg. Volume381,351
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 Cap1.26
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit1.92
Enterprise Value/Ebitda6.97
Forecast
1Y Price Target
$60.00Price Target Upside53.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.29
Revenue Forecast (FY)$542.08M
BuildABear Workshop Business Overview & Revenue Model
Company Description
Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various s...
How the Company Makes Money
BBW primarily makes money by selling customizable plush products and related merchandise through multiple channels. (1) Retail store sales: Company-operated locations generate revenue from in-store transactions where customers purchase a plush toy...
BuildABear Workshop Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational headwinds in traffic and e-commerce led to a modest revenue decline and prompted a downward revision to full-year revenue guidance, while the business showed important strengths — strong commercial (wholesale/franchise) growth, margin improvements, solid product/collection momentum, continued international expansion, and ongoing shareholder returns. Tariff accounting benefits lifted reported profitability but also introduced forecasting noise. Management is focused on strategic pillars and back-half initiatives, but near-term visibility is limited and Q2 is expected to be weaker.Positive Updates
Quarterly revenue and context
Total revenue of $125.3 million in Q1; described as the company's second-best first quarter in history. Revenue declined ~2.4% year-over-year but management noted a 9% increase over 2024 and positive seasonal results (best-ever North America Valentine's Day and solid Easter).
Negative Updates
Traffic and e-commerce weakness
Domestic store traffic declined ~7% YoY and transactions decreased in the direct-to-consumer channel. E-commerce demand fell sharply by 26.1%, with management attributing part of the web weakness to Google AI search changes and broader macro softness.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly revenue and context
Total revenue of $125.3 million in Q1; described as the company's second-best first quarter in history. Revenue declined ~2.4% year-over-year but management noted a 9% increase over 2024 and positive seasonal results (best-ever North America Valentine's Day and solid Easter).
Read all positive updates
Company Guidance
The company revised full‑year guidance to $530–$550 million in revenue (essentially flat to +4% YoY) while raising GAAP pretax income guidance to $72–$78 million (or $65–$71 million adjusted excluding a $7 million prior‑year tariff refund), and reiterated expectations to open at least 50 net new locations and to grow commercial segment revenue by at least 20% for the year; management assumes roughly $10 million of ongoing tariff‑related costs and a 10% tariff rate for the remainder of fiscal 2026 (they booked a $13 million tariff refund receivable, $7 million of which relates to prior year), flagged $3 million of longer‑range investments, and said Q2 will likely be weaker with second‑quarter profitability down YoY and the year being back‑half weighted. For context they reported Q1 revenue of $125.3 million (‑2.4% YoY), gross margin of 63.8% (+700 bps, including a 560‑bp benefit from the $7M tariff refund and +140 bps from higher AUR), ecommerce down 26.1%, domestic traffic down 7%, commercial/franchise growth +34.1%, Q1 pretax income $23.9M ($16.9M adjusted), EPS $1.45 ($1.03 adjusted), cash $26.2M, inventory $77.8M (+$5.6M), returned $14.3M to shareholders in Q1 ($45.9M TTM) and repurchased ~650k shares (~5% fewer shares YTD) with $47M remaining on a $100M buyback.BuildABear Workshop Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 529.83M | 496.40M | 486.11M | 467.94M | 411.52M |
| Gross Profit | 295.63M | 272.52M | 264.39M | 245.87M | 217.96M |
| EBITDA | 79.58M | 81.05M | 79.06M | 75.03M | 62.98M |
| Net Income | 52.20M | 51.78M | 52.80M | 47.98M | 47.27M |
Balance Sheet | |||||
| Total Assets | 345.45M | 289.96M | 272.32M | 280.79M | 266.32M |
| Cash, Cash Equivalents and Short-Term Investments | 26.75M | 27.76M | 44.33M | 42.20M | 32.84M |
| Total Debt | 127.30M | 97.00M | 83.57M | 86.52M | 97.76M |
| Total Liabilities | 190.43M | 150.87M | 142.66M | 161.68M | 175.27M |
| Stockholders Equity | 155.03M | 139.08M | 129.66M | 119.12M | 93.68M |
Cash Flow | |||||
| Free Cash Flow | 39.51M | 27.77M | 46.02M | 33.64M | 19.95M |
| Operating Cash Flow | 65.05M | 47.09M | 64.31M | 47.28M | 28.08M |
| Investing Cash Flow | -25.55M | -19.32M | -18.30M | -13.63M | -8.13M |
| Financing Cash Flow | -40.71M | -44.16M | -43.90M | -25.06M | -22.46M |
BuildABear Workshop Technical Analysis
Negative
39.05
Price Trends
37.42
Negative
45.20
Negative
51.58
Negative
Market Momentum
-0.41
Positive
40.89
Neutral
20.63
Neutral
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 39.05 is above the 20-day moving average (MA) of 36.78, above the 50-day MA of 37.42, and below the 200-day MA of 51.58, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 40.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, 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 3 New Risks
1.
The market price of our common stock has been and may continue to be volatile. Q4, 2025
2.
Our use of artificial intelligence technologies presents operational, reputational, data security and legal risks that could adversely affect our business and financial performance, and any failure to effectively leverage artificial technologies in our business could negatively impact our customer engagement and competitive position. Q4, 2025
3.
Because our business is largely based on a vertical retail model, labor-related matters, ranging from union formation to labor disputes, may adversely affect our operations. Q4, 2025
BuildABear Workshop Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $451.89M | 8.04 | 35.60% | 1.52% | 3.26% | 2.53% | |
62 Neutral | $1.20B | 6.35 | 22.86% | ― | 0.77% | 2.73% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $580.69M | -27.18 | -36.11% | ― | 10.25% | 70.25% | |
52 Neutral | $324.76M | -16.29 | -2.64% | ― | 32.03% | 76.28% | |
50 Neutral | $372.46M | -36.12 | -3.56% | ― | 10.09% | 99.49% | |
46 Neutral | $300.94M | -2.06 | -55.53% | ― | -9.53% | 20.64% |
* Consumer Cyclical Sector Average
BBW
BuildABear Workshop
35.27
-10.10
-22.25%
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BuildABear Workshop Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Build-A-Bear Workshop Announces Planned CEO Leadership Transition
Positive
Mar 12, 2026
On March 12, 2026, Build-A-Bear Workshop announced a planned CEO transition in which longtime President and Chief Executive Officer Sharon Price John will retire from her executive role on June 11, 2026, coinciding with the 2026 annual shareholder...
DividendsFinancial Disclosures
Build-A-Bear Raises Quarterly Dividend, Signals Ongoing Confidence
Positive
Mar 12, 2026
On March 11, 2026, Build-A-Bear Workshop, Inc.’s board declared a quarterly cash dividend of $0.23 per share, up $0.01 from the prior payout, for holders of record as of March 26, 2026. The dividend is scheduled to be paid on April 9, 2026, ...
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.