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Build-A-Bear Beats on EPS but Warns Tariff Hit Will Persist Into 2026 as Shares Slide

Management says costs tied to U.S. import levies have begun denting margins after earlier mitigation.

Overview

  • Third-quarter EPS came in at $0.62, topping estimates, on revenue of $122.7 million that rose 2.7% but missed Wall Street expectations.
  • Roughly $4 million in tariffs and related costs hit the quarter, and the CFO expects the elevated impact to continue through the fourth quarter and into next fiscal year.
  • Full-year guidance was reaffirmed for mid-to-high-single-digit revenue growth and $62 million to $70 million in pre-tax income, incorporating about $11 million in tariff costs from July through year-end.
  • Profitability fell year over year, with pre-tax income at $10.7 million and net income at $8.1 million, and shares dropped about 13% Thursday.
  • Retail store sales increased as e-commerce demand declined, inventory rose 17.7% to $83.3 million due to pull-forward actions, and the company added 24 net new locations while continuing share repurchases.