Build-A-Bear Workshop, Inc. (NYSE:BBW) reported third-quarter fiscal 2025 results ended November 1, 2025, with diluted EPS of 62 cents, beating the 58 cents estimate. Revenue rose 2.7% to $122.679 million, but missed the $124.282 million estimate.
Pre-tax income fell to $10.7 million, or 8.7% of revenue, from $13.1 million, or 11.0%, which the company said reflected “approximately $4 million in tariffs and related costs.” Net income declined to $8.1 million from $9.9 million.
Net retail sales increased 2.5% to $112.3 million, while consolidated e-commerce demand decreased 10.8%. Commercial and international franchising revenue rose 4.9% to $10.4 million.
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Build-A-Bear posted net new unit growth of 24 locations in the quarter and ended the period with 651 total locations. The company returned $26.1 million to shareholders through the first nine months and stated that it repurchased an additional $2.1 million of shares after quarter-end through December 3, leaving $69.7 million under its $100.0 million authorization adopted on September 11, 2024.
Build-A-Bear ended the quarter with $27.7 million in cash and cash equivalents and no borrowings under its revolving credit facility.
Inventory rose 17.7% to $83.3 million, which the company attributed to “the added cost of tariffs and the pull-forward of products aligned with our tariff-mitigation plans.”
CEO Sharon Price John said, “We are pleased to report record third-quarter and first-nine-months revenue,” and said the company is “reaffirming guidance for the year.”
CFO Voin Todorovic said, “While the company preemptively mitigated significant tariff impacts during the first half of the year, the third quarter marked the first meaningful expenses from tariffs and related costs. We expect this elevated level of impact to continue through the fourth quarter and into the next fiscal year. Nevertheless, we remain confident in our guidance, which accounts for tariff impacts and our focus on disciplined expense management.”
Outlook
Build-A-Bear reaffirmed fiscal 2025 guidance for mid-to-high-single-digit revenue growth and pre-tax income of $62 million to $70 million, “reflecting approximately $11 million of tariffs and related costs” from July through fiscal year-end, as well as net-new-unit growth of at least 60 locations.
BBW Price Action: Build-A-Bear Workshop shares were down 6.13% at $53.88 during premarket trading on Thursday, according to Benzinga Pro data.
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