Build-A-Bear Workshop reported adjusted earnings per share of $0.70 for the second quarter ended August 1, exceeding the $0.67 consensus estimate among analysts. Revenue totaled $115.3 million, missing the $121.27 million forecast and declining 7.2% from $124.2 million a year earlier.
Net retail sales fell 7.1% to $106.5 million, while consolidated e-commerce demand dropped 15.6%. Pre-tax income decreased to $11.6 million, or 10.1% of revenue, from $15.3 million, or 12.3% of revenue, in the prior-year period. The company incurred approximately $1 million in tariffs and related costs during the quarter.
Despite the profit beat, shares of Build-A-Bear fell 15.6% in pre-market trading as guidance for the full fiscal year was lowered. Management now expects revenue between $500 million and $525 million, below the $538.8 million consensus. Pre-tax income is projected at $60 million to $68 million, which includes an estimated $13 million tariff refund.
CEO Chris Hurt noted that while fiscal 2026 was expected to be back-half weighted, second-quarter results fell short of expectations. He added that certain wholesale opportunities may take longer to materialize than previously anticipated.
The company returned $22.7 million to shareholders in the first half of fiscal 2026 through share repurchases and quarterly dividends. As of the quarter’s end, Build-A-Bear held $14.0 million in cash and had no borrowings under its revolving credit facility.
