Build-A-Bear cuts 2026 outlook as Q2 traffic, sales weaken

Build-A-Bear Workshop reported lower second-quarter revenue and profit as weaker store traffic and an underperforming summer trend assortment weighed on results.

The retailer cut its full-year revenue and pre-tax income outlook, the company said in its Aug. 27 earnings release.

The miss reflects softer footfall and a summer assortment that failed to resonate with shoppers, the company said. Specific revenue and earnings figures were not disclosed in the preliminary release.

The guidance reduction signals management expects demand softness to persist into the second half, pressuring the experiential retailer's growth trajectory.

Build-A-Bear, known for its make-your-own stuffed animal stores, generates most of its sales through its brick-and-mortar network, leaving it exposed to swings in foot traffic. The company's summer trend assortment, a key driver of seasonal demand, underperformed expectations, it said.

The results add to a cautious stretch for specialty retailers as consumers pull back on discretionary spending. Peers including Bath & Body Works and Five Below have flagged similar pressure on foot traffic and seasonal assortments, pointing to broader demand softness across the experiential and value retail segments.

Build-A-Bear's lowered pre-tax income guidance suggests the company sees margin pressure alongside the revenue shortfall. The retailer's next catalyst is the full earnings call, where management is expected to detail same-store sales trends and holiday-season expectations.

This article is for informational purposes only and does not constitute investment advice.