Build-A-Bear Workshop, Inc. functions as a multi-channel vendor specializing in stuffed toys and their complementary merchandise. The business organizes its operations across ...
Build-A-Bear Workshop, Inc. (NYSE: BBW) is a leading multi-channel retailer in the specialty retail industry, known for its interactive 'make-your-own' stuffed animal experience. Founded by Maxine Clark on October 27, 1997, in St. Louis, Missouri, the company has grown into a beloved global brand with a mission to 'add a ...Build-A-Bear Workshop, Inc. (NYSE: BBW) is a leading multi-channel retailer in the specialty retail industry, known for its interactive 'make-your-own' stuffed animal experience. Founded by Maxine Clark on October 27, 1997, in St. Louis, Missouri, the company has grown into a beloved global brand with a mission to 'add a little more heart to life.' The company operates through three primary segments: Direct-to-Consumer (retail stores and e-commerce), Commercial (wholesale and licensing), and International Franchising. As of early 2024, Build-A-Bear operates over 525 stores worldwide, including company-owned locations in the US, Canada, UK, and Ireland, and franchised stores internationally. The company offers a diverse range of plush animals, apparel, accessories, and personalized elements like sounds and scents. Financially, the company reported total revenues of $486.1 million in fiscal 2023, with a strong gross profit margin of 57.4% and a net profit margin of 10.5% (TTM). The company has demonstrated solid operational efficiency with an inventory turnover of 2.88 and a return on equity of 35.6% (TTM). Key leadership includes CEO J. Christopher Hurt, who assumed the role in June 2026 after 11 years with the company, and founder Maxine Clark, who stepped down as CEO in 2013 but remains involved as a board member emeritus. Build-A-Bear is committed to innovation, expanding its digital presence, and enhancing the customer experience through initiatives like the online Bear Builder and experiential retail. The company also focuses on community engagement and philanthropy, aligning with its heart-centered brand philosophy.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$529.8M
+6.7%
-8.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$52.2M
+0.8%
-52.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+55.8%
+1.6%
-15.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+12.2%
-8.6%
-49.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+9.9%
-5.6%
-48.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$39.5M
+42.3%
+18.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.5%
+33.3%
+28.7%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
82.1%
+17.7%
-0.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.55x
-2.9%
+4.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Build-A-Bear Workshop Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Gary Schnierow, Vice President, Investor Relations.
Gary Schnierow: Thank you. Good morning, everyone, and welcome to Build-A-Bear's second quarter 2026 earnings conference call. With us today are Chris Hurt, Build-A-Bear's Chief Executive Officer, and Voin Todorovic, our Chief Financial Officer and Chief Administrative Officer. During this call, we'll refer to forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the Risk Factors section. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release, which is distributed and available to the public through our Investor Relations website. And now I'll turn the call over to Chris.
J. Christopher Hurt: Thank you, Gary, and good morning, everyone. I appreciate you joining us today for Build-A-Bear's second quarter fiscal 2026 earnings call. As we communicated earlier this year, we expected fiscal 2026 to be a tale of 2 halves, with more difficult comparisons impacting the first half, followed by less challenging comparisons and anticipated improved performance in the back half of the year. Although we continue to expect a stronger second half than the first, second quarter results fell short of our projections, driven mainly by continued traffic challenges due to the performance of our summer trend collection and in addition to macroeconomic conditions. As a result, we have moderated our direct-to-consumer expectations for the balance of the year, and together with our updated outlook for our commercial segment, we reduced our full-year guidance. Voin will discuss the updated guidance in more detail in his remarks. Second quarter was up against a particularly strong performance last year, when DTC revenue increased 11% and web demand increased 15%. These results were driven by a number of strong summer collections, including trend products with our innovative fruit stand assortment, exclusive licensed offerings such as the Sanrio Sweet Shop, and a selection of movie-related items, highlighted by the How to Train Your Dragon launch featuring a new Toothless, which through the years has proven to be one of our most successful movie characters. Following the success of Summer 2025, we used this year's assortment to push even further into product innovation, including novel designs such as Slushie Plushies and Beary Goods. While these less customizable concepts did not resonate as strongly as anticipated and contributed to weaker performance than last year, the quarter also reinforced an important insight. …
