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Written by Haider Saleem
Journalist and Political Analyst | LinkedIn / X
Build-A-Bear Workshop has turned a nostalgic, hands-on experience into measurable growth in a year when many retailers cite weak traffic and tariff issues.
Over five years they have seen stocks grow >2,000% rise from 2020 lows to roughly $73. This beats the world’s biggest tech giants, like Nvidia (they surged by >1,300% in the past five years, with shares up over 30% year-to-date).
The company’s latest quarter showed rising sales and profits.
This article outlines:
1. What changed in August,
2. The operating levers driving results, and,
3. The near-term signposts to watch
What changed in August
The numbers
On 28 August 2025 the company reported:
· Second-quarter revenue of $124.2 million (up ~11% year on year) and diluted EPS of $0.94 (up ~47% year on year).
· First-half fiscal 2025 revenue reached $252.6 million (up ~11.5% year on year).
· Management raised full-year pre-tax income guidance to $62–$70 million.
The share price has been an outlier in 2025. As of late September, the stock was up more than 60% year-to-date and trading just under $72 per share. AP also reports first-half pre-tax income of $34.9 million, up 31.5% year on year.
How the model is scaling
Experiential core
The in-store ritual – selection, stuffing, a “heart ceremony,” customisation, and a birth certificate – anchors demand and differentiates the offer within toy retail. Recent reporting links resilience to this singular experience.
Channels beyond malls
Build-A-Bear has 627 stores globally across malls, tourist destinations, cruise ships and department stores. About 100 opened in the past two years, and the company expects to open 60 more in fiscal 2025. Almost all of its North America stores were profitable last year, according to company disclosures cited by the Washington Post.
Adult demand and licensing
Adults are now a material customer group. One analyst cited estimates about 40% of the business comes from “kidults.” The company has partnered with ~75 licenses over time and introduced the adult-oriented “After Dark” line, supported by website-only drops for collectors.
Assortment and pricing architecture
The Mini Beans line adds lower-price, pre-stuffed options. CNBC notes the brand can “discreetly” adjust pricing because constant newness limits direct like-for-like comparisons. The Washington Post documents a Mini Beans move from $9.50 to $10 as an example of selective price changes.
Vertical model and operations
A vertically integrated approach – designing, producing, distributing, and retailing its own product – supports store-fulfilled e-commerce, disciplined site renegotiations, and capital-light expansion via partners and franchises.
Tariffs and mitigation
Build-A-Bear sources heavily from China and Vietnam. On the 28 Aug earnings call, the CFO referenced 30% U.S. import duties on China and 20% on Vietnam. Management and wires place the 2025 tariff impact at under $11 million, with mitigation through front-loaded inventory and selective pricing.
Why this stands out in 2025
- Results and guidance: Revenue and EPS grew. Full-year pre-tax income guidance increased.
- Diversified distribution: Non-mall locations broaden exposure and add runway for new units.
- Adult segment at scale: “Kidulting” is quantified in recent reporting and supported by licensing cadence.
- Operational discipline: A vertical model and partner/franchise channels support capital-efficient growth.
What to watch next
- Holiday sell-through and margin mix: Velocity of seasonal and licensed drops, plus Mini Beans contribution.
- Unit growth outside malls: Execution toward the ~60 planned fiscal-year openings.
- Tariff passthrough: Any change to tariff rates or sourcing mix, and visibility of price changes at SKU level.
Digital engagement: Social-driven demand among adult collectors and timing of web-only drops.
Footnotes
[1] Press release (Aug 28, 2025): “Build-A-Bear Workshop Reports Record Second Quarter and First Half Fiscal 2025 Results and Increases Annual Guidance.”
[2] AP (late Sept 2025)
[3] Washington Post (Sep 28, 2025):
[4] CNBC (Sep 22, 2025)
[5] Mini Beans pricing example
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