Overview
- Build-A-Bear posted diluted EPS of $0.62, topping forecasts, on revenue of $122.7 million that missed expectations.
- About $4 million in tariffs and related costs reduced third-quarter pre-tax income, with roughly $11 million expected from July through year-end.
- The company reiterated its fiscal 2025 outlook for mid-to-high-single-digit revenue growth and $62 million to $70 million in pre-tax income.
- Inventory rose 17.7% to $83.3 million due to tariff-related costs and product pull-forwards, while retail sales grew and e-commerce demand declined 10.8%.
- Shares fell roughly 13% Thursday as the company added a net 24 locations to reach 651 stores, continued buybacks, and ended the quarter with $27.7 million in cash and no revolver borrowings.