Build‑A‑Bear Workshop saw its shares tumble 27.3% to $28.44 on Thursday, marking the steepest daily percentage decline in the company's history and pushing the price to a two‑year low. The decline left the stock down about 54% for the year.
The sell‑off followed the company's revision of its fiscal 2026 revenue outlook to a range of $500 million‑$525 million, down from the prior $530 million‑$550 million estimate. This represents the second forecast cut this year, the first having been announced in May after weaker store traffic.
Management said the updated outlook incorporates $10 million‑$11 million of ongoing tariff and related costs. In addition, Build‑A‑Bear confirmed it could not renew a multimillion‑dollar wholesale partnership with Walmart, and that other wholesale initiatives are progressing more slowly than expected.
Personnel changes were also disclosed. Chief Growth Officer David Henderson was terminated without cause effective Wednesday. The company reiterated the succession plan announced in March, with longtime CEO Sharon Price John set to retire in June and be succeeded by chief operations and experience officer Chris Hurt.
Analysts at D.A. Davidson & Co, who maintain a buy rating, noted that the revised guidance falls below consensus across all line items and reflects weaker profitability in the back half of the year due to incremental tariff pressures.
