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Build-A-Bear Workshop Reports Fourth and Record Fiscal 2025 Results; Increases Quarterly Dividend

businesswire.com

Build-A-Bear Workshop Reports Fourth and Record Fiscal 2025 Results; Increases Quarterly Dividend ST. LOUIS--( BUSINESS WIRE)--Build-A-Bear Workshop, Inc. (NYSE: BBW) today announced results for the fourth quarter of fiscal year 2025 ended January 31, 2026.

“We are pleased to report a year of solid revenue expansion, driven by growth across each of our three operating segments. This momentum, even amid external distractions, was further supported by the successful opening of more than 60 net new units across multiple geographies for the second year in a row,” commented Sharon Price John, President and Chief Executive Officer of Build-A-Bear Workshop. “Looking ahead, with a strong plan and key infrastructure in place, given we have now surpassed the half‑billion‑dollar milestone revenue mark this fiscal year, we are focused on further leveraging our success and the power of our brand to drive more incremental business,” concluded Ms. John.

Voin Todorovic, Chief Financial Officer of Build-A-Bear Workshop, added, “The company achieved its fifth consecutive year of record revenue and pre-tax income. These results reflect approximately $11 million in tariffs and related costs that we partially offset through continued operational excellence, strong store contribution margins, and actions to further diversify our business model. This consistent performance, together with solid cash flow generation, has enabled us to return more than $170 million to shareholders through stock repurchases and dividends over the past five years."

Fourth Quarter Fiscal 2025 Results

(13 weeks ended January 31, 2026, compared to the 13 weeks ended February 1, 2025)

Fiscal Year 2025 Results

(52 weeks ended January 31, 2026, compared to the 52 weeks ended February 1, 2025)

Store Activity

For the quarter, the Company had net new unit growth of 11 global experience locations, comprising 10 partner-operated and one franchise location. For the year, the Company had net new unit growth of 64 global experience locations, comprising seven corporately-managed, 40 partner-operated, and 17 franchise locations.

At the end of the fiscal year, Build-A-Bear had 662 locations, reflecting 375 corporately-managed, 178 partner-operated, and 109 franchise locations.

Balance Sheet

At fiscal year-end, cash and cash equivalents totaled $26.8 million, a decrease of $1.0 million, or 3.6%, compared with last year. The Company finished the quarter with no borrowings under its revolving credit facility.

For the fourth quarter and fiscal 2025, capital expenditures totaled $12.7 million and $25.5 million, respectively.

Inventory at fiscal year-end totaled $82.2 million, an increase of $12.4 million, or 17.8%, compared with last year, driven by higher tariffs and inventory levels required to support expected increased sales activity. The Company remains comfortable with the level and composition of its inventory.

Return of Capital to Shareholders

For the fourth quarter, the Company utilized $10.1 million in cash to repurchase 172,904 shares of its common stock and paid a quarterly cash dividend of $2.8 million to shareholders. For fiscal 2025, the Company utilized $27.5 million in cash to repurchase 508,945 shares of its common stock and paid $11.5 million in quarterly cash dividends to shareholders.

Since the end of the fourth quarter through March 11, the Company has utilized $6.7 million in cash to repurchase an additional 132,230 shares of its common stock. The Company has $55.0 million remaining under the board-authorized $100.0 million stock repurchase program adopted on September 11, 2024.

2026 Outlook

The Company issues the following fiscal 2026 outlook:

In addition, for fiscal 2026, the Company currently expects:

The Company’s outlook considers various factors, including tariffs, labor costs, changes in freight expense, and ongoing inflationary challenges. Separately, the Company’s outlook does not contemplate any further material changes in tariffs, the macroeconomic conditions, or relevant foreign currency exchange rates. Finally, the Company’s outlook does not take into account the potential impact of the current geopolitical environment arising from events in the Middle East.

Note Regarding Non-GAAP Financial Measures

In this press release, the Company’s financial results are provided both in accordance with generally accepted accounting principles (GAAP) and using certain non-GAAP financial measures. In particular, the Company provides historic income adjusted to exclude certain costs, which are non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the Company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the Company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measure later in this document.

Webcast and Conference Call Information

Today, at 9:00 AM ET, Build-A-Bear Workshop will host a conference call with investors and financial analysts to discuss its financial results. The call will be webcast on Build-A-Bear’s Investor Relations website, https://ir.buildabear.com.

The dial-in number for the live conference call is (877) 407-3982 or (201) 493-6780 for international callers. The access code is Build-A-Bear. The call is expected to conclude by 10 AM ET.

A replay of the conference call webcast will be available on the investor relations website for one year. A telephone replay will be available from approximately 1:00 p.m. ET on Thursday, March 12, 2026, until 11:59 p.m. ET on Thursday, March 26, 2026. The telephone replay is available by calling (412) 317-6671 (toll/international) or (844) 512-2921 (toll-free). The access code is 13758473.

About Build-A-Bear

Founded in 1997, Build‑A‑Bear is a leading global retailtainment brand on a mission to add a little more heart to life. At Build-A-Bear, guests are invited to create personalized furry friends through a unique stuffing, dressing, accessorizing and naming process, accentuated by a memorable "heart ceremony" that creates moments of connection for people of all ages.

Over the years, Build‑A‑Bear has grown into a multi‑generational phenomenon, positioned at the intersection of pop‑culture trends. Beyond its signature retail experience, the brand also offers pre‑stuffed plush, gifting, partnerships with best‑in‑class licensed and collectible characters, and original storytelling through Build‑A‑Bear Entertainment, LLC. Build‑A‑Bear’s current brand platform and message, “The Stuff You Love,” crosses ages and cultures while celebrating nearly 30 years of helping people mark life’s meaningful moments.

Today, Build‑A‑Bear operates more than 650 company-owned, partner-operated and franchise experience locations across more than 30 countries, complemented by buildabear.com. Build‑A‑Bear Workshop, Inc. (NYSE: BBW) reported $529.8 million in total revenues for fiscal 2025, representing the company's 5th consecutive year of record results. Learn more at the Investor Relations section of buildabear.com.

Forward-Looking Statements

This press release contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “future,” “potential” or “continue,” the negative or any derivative of these terms and other comparable terminology. All the information concerning our future liquidity, future revenues, margins and other future financial performance and results, achievement of operating of financial plans or forecasts for future periods, sources and availability of credit and liquidity, future cash flows and cash needs, success and results of strategic initiatives and other future financial performance or financial position, as well as our assumptions underlying such information, constitute forward-looking information.

These statements are based only on our current expectations and projections about future events. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements, including those factors discussed under the caption entitled “Risks Related to Our Business” and “Forward-Looking Statements” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 18, 2024 and other periodic reports filed with the SEC which are incorporated herein.

All our forward-looking statements are as of the date of this Press Release only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or other risks and uncertainties referred to in this Press Release or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to the SEC could materially and adversely affect our continuing operations and our future financial results, cash flows, available credit, prospects, and liquidity. Except as required by law, the Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

All other brand names, product names, or trademarks belong to their respective holders.

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(dollars in thousands, except share and per share data)

13 Weeks

13 Weeks

Ended

Ended

January 31,

% of Total

February 1,

% of Total

2026

Revenues (1)

2025

Revenues (1)

139,464

90.3

139,499

92.7

13,558

8.8

9,529

6.3

1,489

1.0

1,418

1.0

154,511

100.0

150,446

100.0

61,328

44.0

60,062

43.1

6,655

49.1

4,229

44.4

1,218

81.8

1,011

71.3

69,201

44.8

65,302

43.4

85,310

55.2

85,144

56.6

63,935

41.4

57,796

38.4

(174

)

(0.1

)

(138

)

(0.1

)

21,549

13.9

27,486

18.3

5,154

3.3

5,808

3.9

16,395

10.6

21,678

14.4

1.26

1.63

1.26

1.62

12,978,854

13,297,099

13,021,011

13,355,474

(1)

52 Weeks

52 Weeks

Ended

Ended

January 31,

% of Total

February 1,

% of Total

2026

Revenues (1)

2025

Revenues (1)

485,956

91.7

460,325

92.8

38,750

7.3

31,387

6.3

5,126

1.0

4,692

0.9

529,832

100.0

496,404

100.0

213,229

43.9

207,200

45.0

17,199

44.4

13,439

42.8

3,775

73.6

3,247

69.2

234,203

44.2

223,886

45.1

295,629

55.8

272,518

54.9

229,203

43.3

206,238

41.5

(801

)

(0.2

)

(861

)

(0.2

)

67,227

12.7

67,141

13.5

15,024

2.8

15,356

3.1

52,203

9.9

51,785

10.4

4.00

3.81

3.99

3.80

13,045,394

13,578,587

13,083,436

13,621,075

(1)

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(dollars in thousands, except per share data)

January 31,

February 1,

February 3,

2026

2025

2024

ASSETS

$

26,755

$

27,758

$

44,327

82,203

69,775

63,499

21,459

16,096

8,569

9,603

12,669

11,377

140,020

126,298

127,772

$

121,129

90,200

73,443

70,926

59,761

55,262

7,370

7,596

8,682

6,008

6,101

7,166

$

345,453

$

289,956

$

272,325

LIABILITIES AND STOCKHOLDERS' EQUITY

15,318

$

16,538

$

16,170

26,104

16,209

19,954

28,651

26,841

25,961

15,289

15,791

18,134

5,264

4,015

3,514

90,626

79,394

83,733

98,647

70,155

57,609

1,152

1,325

1,321

128

133

142

60,821

61,987

66,330

(10,760

)

(12,554

)

(12,082

)

104,839

89,516

75,272

155,028

139,082

129,662

$

345,453

$

289,956

$

272,325

BUILD-A-BEAR WORKSHOP, INC. AND SUBSIDIARIES

Unaudited Selected Financial and Store Data

(dollars in thousands)

13 Weeks

13 Weeks

52 Weeks

52 Weeks

Ended

Ended

Ended

Ended

January 31,

February 1,

January 31,

February 1,

2026

2025

2026

2025

78,136

79,437

272,727

253,125

56.0

%

56.9

%

56.1

%

55.0

%

12,674

9,746

25,545

19,317

3,885

3,790

14,952

14,772

333

328

42

40

375

368

109

83

178

138

743,733

733,972

58,166

56,542

801,899

790,514

(1)

Retail gross margin represents net retail sales less cost of merchandise sold - retail. Retail gross margin percentage represents retail gross margin divided by net retail sales. Store impairment is excluded from retail gross margin.

(2)

Capital expenditures represents cash paid for property, equipment, and other assets.

(3)

Excludes e-commerce. North American stores are located in the United States and Canada. In Europe, stores are located in the United Kingdom and Ireland. Seasonal locations not included in store count.

(4)

Square footage for stores located in North America is leased square footage. Square footage for stores located in Europe is estimated selling square footage. Seasonal locations not included in the store count.

Quarter

Quarter

Year

Year

Ended

Ended

Ended

Ended

January 31,

February 1,

January 31,

February 1,

2026

2025

2026

2025

$

21,549

$

27,486

$

67,227

$

67,141

(174

)

(138

)

(801

)

(861

)

3,885

3,790

14,952

14,772

$

25,260

$

31,138

$

81,378

$

81,052