1 week ago
Build-A-Bear Shares Plunge After Weak Revenue Outlook
Build-A-Bear makes stuffed animals that customers can customize.
Its stock price dropped sharply after the company lowered its sales forecast.
The company now expects fiscal 2026 revenue of $500 million to $525 million.
It previously expected revenue of $530 million to $550 million.
Build-A-Bear said it could not renew an important partnership with Walmart.
Other wholesale business opportunities are also taking longer than expected.
The company said tariffs will cost it about $10 million to $11 million.
It also dismissed Chief Growth Officer David Henderson and had previously blamed weaker store traffic for an earlier forecast cut.
Build-A-Bear shares fell more than 29% and were on track for their largest daily percentage decline.
The stock reached its lowest level in about two years and was down roughly 55% year to date.
The company cut its fiscal 2026 revenue forecast to $500 million-$525 million from $530 million-$550 million.
Build-A-Bear said it could not renew its multimillion-dollar partnership with Walmart, while other wholesale deals are progressing slowly.
The company terminated Chief Growth Officer David Henderson without cause and cited $10 million-$11 million in ongoing tariff-related costs.
- Who
- Build-A-Bear Workshop, its investors, Walmart, and company executives including David Henderson, Sharon Price John, and Chris Hurt.
- What
- Build-A-Bear shares plunged after the company reduced its fiscal 2026 revenue outlook and disclosed the loss of its Walmart partnership.
- Where
- The trading was reported in New York, while the company’s store and wholesale operations were affected.
- When
- Thursday, August 27; the company’s fiscal 2026 outlook was discussed after its results.
- Why
- The company cited the nonrenewal of its Walmart partnership, slower wholesale opportunities, weaker store traffic, and tariff-related costs.
Company and Analyst View
Market Concerns
Business outlook
Company and Analyst View
Build-A-Bear said it is continuing to pursue wholesale opportunities, while D.A. Davidson & Co analysts maintained a buy rating.
Market Concerns
Investors pushed the stock down sharply after the company lowered its revenue forecast and lost its Walmart partnership.
Future profitability
Company and Analyst View
The company’s updated outlook incorporates expected tariff and related costs of $10 million-$11 million.
Market Concerns
D.A. Davidson & Co analysts said the outlook was below consensus across all line items and included weaker profitability in the second half.
Key facts
- Share decline
- More than 29% during Thursday afternoon trading
- Year-to-date performance
- Down about 55%, including Thursday’s decline
- Fiscal 2026 revenue outlook
- $500 million-$525 million
- Previous revenue outlook
- $530 million-$550 million
- Walmart partnership
- Build-A-Bear said it was unable to renew the multimillion-dollar partnership
- Tariff-related costs
- The company expects $10 million-$11 million in ongoing tariffs and related costs
- Leadership change
- Chief Growth Officer David Henderson’s employment was terminated without cause, effective Wednesday
Quotes
D.A. Davidson & Co analysts
Analysts at D.A. Davidson & Co covering Build-A-Bear Workshop
“The updated outlook is below consensus on all line items and now bakes in weaker back half profitability as we think BBW still faces some incremental tariff cost pressure”
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Sources
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