Why Build-A-Bear Stock Dropped Today

Core Viewpoint - Build-A-Bear Workshop's profits have been significantly impacted by tariffs, leading to a sharp decline in its stock price and earnings [1][4]. Financial Performance - Build-A-Bear's revenue increased by 2.7% year over year to $122.7 million in the fiscal third quarter ended November 1 [2]. - The company's pre-tax income fell by 18% to $10.7 million, primarily due to $4 million in tariff-related costs [4]. - Earnings per share decreased by 15% to $0.62 [4]. Expansion Plans - Build-A-Bear opened 24 net new stores during the quarter, bringing the total store count to 651 [2]. - The company plans to open at least 60 net new stores and aims for mid-to-high-single-digit revenue growth [5]. - The CEO emphasized the focus on global expansion and strategic initiatives despite the challenging economic environment [5]. Market Data - Build-A-Bear's current market capitalization is $1 billion, with a stock price decline of 15.54% to $48.48 [3]. - The stock has a 52-week range of $32.55 to $75.85 [4]. - The gross margin stands at 56.32%, and the dividend yield is 1.53% [4].