Build-A-Bear stock has soared 1,020% over the past five years.
In a challenging retail environment, Build-A-Bear just had its most profitable first half.
A diversified retail business model has accelerated revenue and earnings growth.
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In this age of e-commerce, a brick-and-mortar retail chain making customized stuffed animals might sound like a business model that’s barely hanging by a thread. But that couldn’t be further from reality for Build-A-Bear Workshop (NYSE: BBW).
Build-A-Bear is flourishing, the business is growing, and long-term investors have enjoyed plush returns. Over the past five years, Build-A-Bear stock has outperformed the likes of Alphabet, Apple, Meta Platforms, Palantir, and Tesla by a wide margin, delivering a total return of 1,250%.
Data by YCharts.
Thinking of starting a position in Build-A-Bear? Here are three things you should know.
Build-A-Bear just notched its most profitable second quarter and first half in company history. Revenue for the first half of fiscal 2025, which ended Aug. 2, hit an all-time high of $252.6 million, an 11.5% year-over-year increase. First-half pre-tax income jumped 31.5% to nearly $35 million, and diluted earnings per share (EPS) catapulted 44.5% to $2.11 — both company records.
Build-A-Bear’s first-half momentum prompted management to raise its full-year guidance for revenue, pre-tax income, and new store growth. This wasn’t an outlier, either. Build-A-Bear has posted four consecutive years of record results, and management is expecting fiscal 2025 to be another record-setting year, assuming no dramatic shifts in tariff policy or the economy.
Image source: Getty Images.
Expanding beyond its traditional retail model of corporately managed, mall-based stores has given Build-A-Bear multiple levers to accelerate revenue and earnings growth. For example, partner-operated stores like those at Great Wolf Lodge, Kalahari Resorts, and Girl Scouts Shops now comprise 25% of Build-A-Bear’s total store count….
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