Build-A-Bear Plunges 29% After Cutting Guidance, Losing Walmart Deal, Firing CGO
BBW is trading near its 52-week low of $27.5 (4.1% above the low) on elevated volume (9.8× avg).
Summary
Build-A-Bear shares are down over 29% in afternoon trading, on pace for their biggest one-day drop ever, after the company cut full-year revenue guidance to $500M-$525M from $530M-$550M and disclosed it could not renew a multimillion-dollar partnership with Walmart. The company also terminated Chief Growth Officer David Henderson without cause and said its outlook includes $10M-$11M in ongoing tariff costs. This follows the earlier guidance cut reported this morning, but the new details—the Walmart loss, the CGO firing, and the magnitude of the stock decline—make this a materially worse picture. The stock is now trading near its 52-week low and is down about 55% year-to-date. The loss of the Walmart partnership removes a key wholesale growth driver, and the CGO termination suggests deeper strategic problems. Watch for further analyst downgrades and any update on wholesale partnerships in the next earnings call.
At the time of this announcement, BBW was trading at $28.63 on NYSE in the Trade & Services sector, with a market capitalization of approximately $358.9M. The 52-week trading range was $27.50 to $75.85. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.