Tariffs catch up to resurgent Build-A-Bear, overshadowing financial performance

Core Insights - Build-A-Bear Workshop experienced a strong quarter but faced challenges due to tariffs from the ongoing trade war, which are expected to impact performance into 2026 [1][2] - The company reported earnings of $8.1 million, or 62 cents per share, which was lower than the previous year's $9.9 million, or 73 cents per share, but exceeded analyst expectations of 59 cents per share [3] - Revenue increased by nearly 3% to $122.7 million, although it fell short of Wall Street's expectation of $124 million [3] Financial Performance - Build-A-Bear anticipates fiscal 2025 revenue growth in the mid-to-high single-digit percentage range [4] - The first nine months of the fiscal year have been the most profitable in the company's history, with shares closing at $57.40, a significant increase from under $3 five years ago [5] Market Dynamics - The company has benefited from a growing social media presence and a trend among "kidults," who are returning to purchase products they enjoyed in childhood [4] - CFO Voin Todorovic indicated that while the company has managed to mitigate some tariff impacts, the elevated level of impact is expected to continue into the next fiscal year [2]