Overview

• US toy retailer's fiscal Q1 revenue fell 2.4% yr/yr

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company cut full-yr revenue outlook but raised pre-tax income guidance due to tariff refund

Outlook

• Build-A-Bear sees fiscal 2026 revenue of $530 mln to $550 mln

• Company expects fiscal 2026 pre-tax income of $72 mln to $78 mln

• Build-A-Bear expects net new unit growth of at least 50 experience locations in 2026

Result Drivers

• LOWER CONSUMER TRAFFIC - Co said uncertain economic environment and weaker consumer traffic led to lower-than-expected results

• TARIFF REFUND - $7 mln IEEPA tariff refund boosted gross margin and pre-tax income

• E-COMMERCE DECLINE - Consolidated e-commerce demand fell 26.1% yr/yr

Company press release: ID:nBwbnPLlha

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Retail Sales		$113.47 mln
Q1 Adjusted EPS	Beat	$1.03	$0.75 (4 Analysts)
Q1 Gross Profit		$79.87 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Build-A-Bear Workshop Inc is $61.50, about 62.7% above its May 27 closing price of $37.80

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 15 three months ago

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