Build-A-Bear Workshop (BBW) opened Q1 2027 with revenue of US$125.3 million, Basic EPS of US$1.45 and net income of US$18.3 million, while trailing 12 month figures show revenue of US$526.7 million, Basic EPS of US$4.27 and net income of US$55.2 million. This gives investors a clear read on both the latest quarter and the broader run rate. Over the past six reported quarters, the company has seen quarterly revenue move between US$122.7 million and US$154.5 million and Basic EPS range from US$0.62 to US$1.63, pairing those headline results with trailing net margins that have softened slightly even as earnings quality has been characterised as high.

See our full analysis for Build-A-Bear Workshop.

With the numbers on the table, the next step is to see how this earnings profile lines up with the widely held stories about Build-A-Bear Workshop and where those narratives might need an update.

10.5% net margin shows solid profitability

• On a trailing 12 month basis, Build-A-Bear Workshop converted US$526.7 million of revenue into US$55.2 million of net income, which works out to a 10.5% net margin compared with 10.9% a year earlier.
• Analysts' consensus view highlights the push into international, partner-operated stores and higher value "Kidult" customers as key supports for margins, while the slight margin dip and rising labor and tariff costs show how those efforts are partly offset by headwinds.
  • The consensus narrative points to expanded overseas reach across 32 countries and more personalized, experiential retail as drivers that can support profitability alongside the 10.5% margin currently in the numbers.
  • At the same time, identified cost pressures such as expected tariff and wage headwinds underline why margins sit below last year's 10.9% level, even with these initiatives in place.

Five year earnings growth meets slower forecasts

• Over the last five years, earnings grew 10.8% per year, yet the most recent trailing year shows weaker earnings and forward estimates point to much lower annual growth of 2.1% for earnings and 4.4% for revenue.
• Bulls point to international expansion and new product lines as reasons earnings can remain resilient, while the slower 2.1% earnings growth forecast and modest 4.4% revenue growth projection show why others question how far that bullish view can stretch.
  • Supportive data for the bullish case includes the expansion into underpenetrated regions and the push into higher value adult collectors, which sit alongside trailing 12 month earnings of US$55.2 million.
  • In contrast, the forecast growth rates that lag the broader US market and the recent margin slip from 10.9% to 10.5% are the concrete figures bears point to when arguing growth may be more limited than the long term 10.8% rate suggests.

On this growth versus forecast picture, many bullish investors will want to see how the detailed arguments stack up against the numbers in the full narrative 🐂 Build-A-Bear Workshop Bull Case

Low 8.7x P/E versus peers

• The trailing P/E of 8.7x sits well below both the peer average of 37.3x and the US Specialty Retail industry average of 21.7x, while the provided DCF fair value of US$71.70 and a US$62.00 analyst price target are both above the current share price of US$38.90.
• Bears argue that the discounted multiples and wide gap to the US$71.70 DCF fair value and US$62.00 target reflect concerns about slower 2.1% earnings growth and the dip in net margin, not a clear mispricing.
  • The forecast revenue growth of 4.4% per year versus the higher 11.9% market forecast is one concrete reason skeptics give for why the stock might trade at an 8.7x P/E instead of nearer the 21.7x industry level.
  • The recent deterioration in margin from 10.9% to 10.5% and the weaker trailing year earnings compared with the 10.8% five year earnings growth rate are also specific data points bears lean on when questioning how quickly the share price could move toward US$62.00 or the DCF fair value.

If you want to see how cautious investors tie these growth and margin figures into a more skeptical view of the stock, it is worth reading the bear case in full 🐻 Build-A-Bear Workshop Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Build-A-Bear Workshop on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of optimism and caution in this article feels familiar, that is the signal to review the figures yourself and move quickly while opinions are still forming. To see what current market optimism is focusing on, take a closer look at the 3 key rewards.

See What Else Is Out There

Build-A-Bear Workshop faces slower forecast earnings and revenue growth, softening net margins, and a P/E that reflects concerns about how quickly sentiment could improve.

If that growth and margin picture feels tight, it is worth scanning the 46 high quality undervalued stocks right now to find companies where current pricing and future potential look better aligned.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.