Build-A-Bear Workshop Posts Mixed Q2 Results Amidst Challenging Comparisons
Build-A-Bear Workshop Inc., a leading creator of personalized products for children, reported mixed second-quarter 2026 results amidst challenging comparisons and macroeconomic pressures. Despite the company's strong brand and long-term strategy, the quarter's performance fell short of its projections.
In a conference call on August 27, 2026, Chris Hurt, Build-A-Bear's Chief Executive Officer, attributed the weaker-than-expected results to continued traffic challenges due to the performance of their summer trend collection, as well as macroeconomic conditions. As a result, the company has moderated its direct-to-consumer expectations for the balance of the year and reduced its full-year guidance.
The second quarter saw a particularly strong performance last year, with DTC revenue increasing 11% and web demand growing 15%. This was driven by several successful summer collections, including trend product featuring innovative designs such as Fruit Stand assortment, exclusive licensed offerings like Sanrio Sweet Shop, and movie-related items highlighted by the How to Train Your Dragon launch. However, this year's assortment did not resonate as strongly with customers, contributing to weaker performance compared to last year.
Despite the challenges, the quarter also reinforced an important insight – guests continue to respond positively to products that highlight Build-A-Bear's signature customization experience. The company's dressable Chummy Shark, one of the key characters in their Make Your Own Summer collection, sold out during the quarter, demonstrating the appeal of personalized products. Promise Pets, Build-A-Bear's own intellectual property, also continues to be a meaningful growth platform, driving higher-than-average DPT due to strong attachment rates of clothing and accessories.
The company reported second-quarter revenue of $115.3 million, with pre-tax income standing at $11.6 million. For the first half of fiscal 2026, revenue reached $240.6 million, and pre-tax income was $35.5 million. Adjusted pre-tax income for the period, excluding the IEEPA tariff refund related to 2025, was $28.5 million.
Notably, Build-A-Bear's Halloween launch delivered the highest non-fourth-quarter sales week in the company's history and the third-highest U.S. e-commerce sales week behind only Black Friday weeks of 2020 and 2025. The company's early third-quarter results have improved over the first half, reinforcing its view that guests continue to respond strongly to trend-right product offerings and beloved characters like their recently redesigned Harry Potter bear.
As Build-A-Bear moves forward, it remains confident in the strength of its brand, long-term strategy, and ability to execute against opportunities ahead. The company is expected to continue innovating and refining its approach to meet customer demands while maintaining its commitment to personalized products and customization experience.
