Build-A-Bear Workshop Inc. (NYSE:BBW) reported fourth-quarter results on Thursday that came in slightly below analyst expectations.
Despite the miss, the company’s shares surged about 23.5% in premarket trading as investors focused on the retailer’s record full-year performance and its growth outlook for fiscal 2026.
For the fourth quarter ended January 31, the specialty retailer posted adjusted earnings per share of $1.26, missing the consensus estimate of $1.28. Revenue reached a quarterly record of $154.5 million, rising 2.7% year-over-year but falling short of analyst forecasts of $156.33 million.
Results for the quarter were affected by roughly $6 million in tariff-related and associated costs. Net retail sales totaled $139.5 million, remaining largely unchanged from the prior year, while combined revenue from commercial partnerships and international franchising increased 37.5% to $15.1 million.
For the full fiscal year 2025, Build-A-Bear delivered record performance, reporting revenue of $529.8 million, up 6.7% from the previous year. Adjusted earnings per share also reached a record $3.99, compared with $3.80 in fiscal 2024. During the year, the company absorbed approximately $11 million in tariff-related costs while maintaining solid profitability.
“We are pleased to report a year of solid revenue expansion, driven by growth across each of our three operating segments,” said Sharon Price John, President and Chief Executive Officer. “Looking ahead, with a strong plan and key infrastructure in place, given we have now surpassed the half-billion-dollar milestone revenue mark this fiscal year, we are focused on further leveraging our success and the power of our brand to drive more incremental business.”