Build-A-Bear Q2 Profit Falls 29% as Revenue Declines 7.2%
BBW is trading near its 52-week low of $27.5 (2.5% above the low).
Summary
Build-A-Bear reported Q2 FY2026 net income of $8.76M, down 29% year-over-year, on revenue of $115.3M (down 7.2%). Retail gross margin fell 360 bps to 54.0%, and cash dropped to $14.0M.
Key Events · Earnings and Guidance · BBW
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Q2 Net Income Falls 29%
Net income of $8.76M ($0.70 diluted EPS) vs $12.37M ($0.94) in Q2 FY2025, driven by lower sales and margin compression.
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Revenue Declines 7.2%
Total revenue of $115.3M vs $124.2M prior year. Net retail sales fell 7.1% to $106.5M on lower existing-store sales and e-commerce demand.
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Retail Gross Margin Compresses 360 bps
Retail gross margin rate fell to 54.0% from 57.6%, driven by occupancy cost deleverage and increased promotional activity.
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Cash Position Drops to $14.0M
Cash, cash equivalents and restricted cash fell to $14.0M from $26.8M at fiscal year-end, after $15.4M in capex and $17.0M in share repurchases.
Analysis · BBW · Trade & Services
Build-A-Bear's second quarter shows meaningful deterioration: net income dropped 29% to $8.76M on a 7.2% revenue decline, with retail gross margin compressing 360 basis points to 54.0%. The company is burning cash — down to $14.0M from $26.8M at fiscal year-end — while simultaneously spending $17.0M on buybacks. This comes just two weeks after the company cut full-year revenue guidance to $500M-$525M, confirming the weak Q2 that triggered that cut. The stock trades near its 52-week low at $28.18, down from a $75.85 high.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 30% of the 1963 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.14%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BBW was trading at $28.18 on NYSE in the Trade & Services sector, with a market capitalization of approximately $353.3M. The 52-week trading range was $27.50 to $75.85. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.