Build-A-Bear shares drop most ever on weak annual revenue outlook

Build-A-Bear Workshop's stock plummeted 27.3% on Thursday, marking its most significant daily decline ever. The decline was triggered by the retailer's decision to revise its revenue outlook for the second time this year. The company's shares closed at $28.44, marking their lowest level in nearly two years. The stock has fallen 54% so far this year following disappointing earnings.

During an earnings call, Build-A-Bear revealed it had severed ties with a multimillion-dollar partnership with Walmart and noted that other wholesale opportunities were progressing more slowly than anticipated. The company reduced its fiscal 2026 revenue outlook to a range of $500 million to $525 million, down from its previous guidance of $530 million to $550 million.

Analysts at D.A. Davidson & Co. expressed concern, stating that the updated outlook falls below consensus on all line items and now accounts for weaker back half profitability. The analysts cited incremental tariff cost pressure as a factor that still affects Build-A-Bear. The company also cited ongoing tariffs and related costs in its fiscal year outlook, estimating the impact to be between $10 million and $11 million.

Amid the turmoil, Build-A-Bear terminated the employment of its Chief Growth Officer, David Henderson, effective Wednesday, without cause. The retailer had previously cut its full-year revenue forecast in May due to softer traffic at its stores. In March, Build-A-Bear announced that its CEO, Sharon Price John, was retiring in June and would be succeeded by Chris Hurt, who was then the company’s chief operations and experience officer.