Build‑A‑Bear pops on record Q2 earnings results

Build-A-Bear soared over 13% heading into Thursday’s trading after the toy maker delivered record second-quarter earnings and revenue and raised its outlook. 

Diluted earnings per share were $0.94, well beyond estimates of $0.66 from analysts polled by FactSet. Revenue jumped 11% to $124.2 million, ahead of the Street’s forecast of $116 million.

Build-A-Bear also raised its full-year guidance, with the company now expecting revenue to climb mid- to high single digits. That’s up from its previous forecast for mid-single-digit growth and puts the midpoint of management’s guidance ahead of analysts’ expectations of 5.4% growth.

The brand’s margins improved thanks largely, management said, to fewer promotions, selective price hikes, and a rise in e‑commerce demand outweighing a rise in expenses like retail employee pay and “general inflationary pressures.” The brand also opened 14 new global locations, and inventory levels climbed as a hedge against tariff risks.

Build-A-Bear shares were up 33% year to date prior to the results.