Build-A-Bear’s (BBW) Summer Stumble Tests A Brand Built On Loyalty

Build-A-Bear Workshop (BBW) experienced a challenging quarter in 2026, followed by a record-breaking sales week during Halloween, raising questions about the brand's future. At its second-quarter earnings call on August 27, the company cut guidance for the year after traffic slowed and a summer product launch underperformed. However, executives highlighted a strong performance in non-fourth quarter sales, particularly during Halloween, which generated the company's third-highest US e-commerce sales week ever.

CEO J. Christopher Hurt emphasized that the classic build-your-own concept resonated with customers, while CFO Vojin Todorovic attributed the shortfall to underperformance from summer products and macroeconomic challenges. Despite the downturn, direct-to-consumer revenue remained strong, and the company expects at least 50 new locations this year, including international partnerships and a multilevel store in Orlando.

The stock is currently trading at a forward P/E of 7.26, reflecting skepticism about future earnings growth.