Build-A-Bear Workshop, Inc. (BBW)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
$28.20-3.23%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
Intact: The reason to own it still holds.
Build-A-Bear aims for $530M to $550M revenue in 2026. Profit before tax target is $72M to $78M. New CEO and CFO roles may improve growth and strategy. The stock trades cheap with a PE of 7.76.
Revenue guidance was lowered, showing growth challenges. Profit targets may be missed. The recent sharp stock selloff shows investor doubts. Management has been volatile.
The price is about 16% below our fair value near $36. The market expects weak growth or risks ahead.
Breaks if: Leadership fails to improve revenue or profit trends
Breaks if: Pre-tax income falls below $72M in FY26
Breaks if: Revenue falls below $530M in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with some volatility in management execution. The current thesis state is intact, supported by strong recent financial performance despite a challenging environment.
The market appears to price in a low level of fragility due to weak execution quality, suggesting that expectations are not overly optimistic. BBW is currently valued as cheap compared to its peers, indicating that there may be room for improvement if management execution stabilizes.
Management has lowered revenue and pre-tax income guidance, reflecting a cautious approach amid challenging sales trends. However, capital expenditures remain consistent, showing ongoing investment in the business.
The long-term thesis hinges on management's ability to meet or exceed lowered guidance and the broader Consumer Discretionary sector's performance. Key triggers include potential inflation impacts and the performance of sector leaders like AMZN and BABA.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. The company lowered its fiscal 2026 revenue guidance to $500 million–$525 million. This cut breaks the growth thesis for 2026. Analysts also expect weaker profitability in the second half due to tariff pressure.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: PE rises above 15 without profit growth
In the next 1 to 3 years, BBW's performance will depend on effective management execution and external economic factors. Not investment advice.