Build-A-Bear Workshop Shares Plummet After Disappointing Earnings and Outlook Cut
Specialty retailer Build-a-Bear Workshop (BBW) saw its stock fall nearly 18% in early trading on August 27, following a disappointing second-quarter report. The company cut its full-year revenue guidance for the second time this year to $500 million–$525 million and reduced pre-tax income expectations to $60 million–$68 million. Q2 results showed a 7% drop in revenue to $115.3 million, missing analyst forecasts of $120.8 million. The stock has now fallen 46% since the start of 2026 and its five-year returns have dropped from over 4,600% to just 122%, a sharp contrast with AI leader Nvidia (NVDA), which recently reported record revenue growth and is up more than 800% in the same period. Build-A-Bear faces challenges including leadership changes, slowing store traffic due to economic uncertainty, and rising tariff costs.
Topics: quarterly_results retail stock_performance