Toy retailer Build-A-Bear's Q2 revenue falls 7%, lowers 2026 outlook

Build-A-Bear Workshop

27/08/2026 11:54

Overview
U.S. toy retailer's fiscal Q2 revenue fell 7%, with EPS also down yr/yr
Company lowered fiscal 2026 revenue and pre-tax income outlook
Build-A-Bear returned $22.7 mln to shareholders in H1 via buybacks and dividends

Outlook
Build-A-Bear lowers fiscal 2026 revenue outlook to $500 mln-$525 mln
Company expects fiscal 2026 pre-tax income of $60 mln-$68 mln, including tariff refund
Build-A-Bear anticipates net new unit growth of at least 50 experience locations in 2026

Result Drivers
PROMOTIONAL ACTIVITY - Co said increased promotional activity contributed to lower gross margin in Q2
WHOLESALE DELAYS - Co said certain wholesale opportunities may take longer to realize than previously anticipated, impacting Q2 results
STORE OPENINGS - Co said it continues to execute on strategic growth initiatives, including planned acceleration in experience location openings during the remainder of the year

Company press release: ID:nBw8X9BB6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Retail Sales
 
$106.54 mln
 
Q2 EPS
 
$0.70
 
Q2 Net Income
 
$8.76 mln
 
Q2 Gross Profit
 
$62.49 mln
 
Q2 Pretax Profit
 
$11.63 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Build-A-Bear Workshop, Inc. is $60.00, about 53.5% above its August 26 closing price of $39.10
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 26 - Toy maker Dream International's H1 revenue rises 12% on higher order volumes
Aug 25 - Toy maker Matrix Holdings returns to profit on U.S. OEM demand
Aug 26 - Bath & Body Works forecasts wider-than-expected third quarter sales decline on weak store traffic

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)