Build-A-Bear Reports Q2 Earnings with Revenue Decline
Build-A-Bear (BBW) posted total revenues of $115.3 million for the second quarter, a 7.2% decrease compared to last year due to lower traffic and underperforming summer products. Pre-tax income fell by 24.1%, from $15.3 million in Q2 2025 to $11.6 million this year, with diluted earnings per share dropping to $0.70 from $0.94 a year ago. The company also lowered its full-year revenue guidance to between $500 million and $525 million, down from the previous range of $530 million to $550 million. This revision reflects weaker first-half performance and ongoing traffic challenges in domestic stores. Gross margin declined by 340 basis points year-over-year due to occupancy cost deleverage and increased promotions. Build-A-Bear plans capital expenditures of approximately $25 million for the full fiscal year, with a focus on strategic initiatives and store expansion. The company also repurchased shares worth $8.5 million in Q2.
Tickers: $BBW
Topics: diluted eps guidance net retail sales pre-tax income revenue