Build-A-Bear Workshop(US:BBW) The Motley Fool·2025-12-14 05:30Core Insights - Build-A-Bear Workshop has experienced a total return of nearly 15% in 2023, with shares reaching an all-time high of $75.85 in mid-September before declining to just under $53 by December 10 [1] - Over the past five years, Build-A-Bear has rewarded shareholders with a total return of 1,300%, driven by a successful business strategy focused on expansion and diversification [2] - The company reported mixed third-quarter results, with diluted earnings per share (EPS) of $0.62 exceeding analyst expectations, but revenue of $122.7 million fell short of the anticipated $124 million [4][5] Financial Performance - Build-A-Bear's pre-tax income decreased by 18% to $10.7 million, attributed to a $4 million impact from tariffs and related costs [5] - The company expects to incur an $11 million hit from tariffs in fiscal year 2025, which has already been factored into its guidance [7] - Despite the challenges, Build-A-Bear reaffirmed its full-year outlook, aiming for a fifth consecutive year of record revenue and profitability [7] Strategic Focus - CFO Voin Todorovic indicated that the third quarter marked the first significant expenses from tariffs, with expectations for continued elevated impacts into the next fiscal year [6] - The company plans to manage tariff impacts by working with suppliers to reduce costs, adjusting prices strategically, and managing promotions more stringently [8] - Build-A-Bear is diversifying its business model, exemplified by the success of its Mini Beans collection, which has sold nearly 3 million units [8]