Build-A-Bear

BBW

Market cap $913M

Build-A-Bear Workshop is rated a "Buy," driven by revived brand momentum and a compelling valuation amid retail sector rotation. BBW has successfully diversified its customer base, with 40% now teens and adults, effectively doubling its addressable market. Strategic content licensing with major franchises and sports leagues, plus a 110% online sales CAGR since 2019, underpin growth.

Agree Realty and Build-A-Bear Workshop are high-quality, long-term holdings but currently trade at or above fair value. I target ADC as a nibble under $70, a buy under $65, and a strong buy under $60, emphasizing margin of safety. BBW is attractive for nibbling under $55, buying under $50, and loading up under $45, given its growth and debt-free balance sheet.

Build-A-Bear Workshop has been quietly waging a comeback since CEO Sharon Price John came on board in 2013. During this time, the company doubled its sales among teens and adults, invested heavily in e-commerce and expanded internationally.

Build-A-Bear Workshop's business plummeted during the pandemic, but under CEO Sharon Price John, the company has undergone a significant turnaround. Price John led the company to invest in e-commerce, diversify its sales beyond malls and invest in international franchises, boosting growth.

Group of Adorable Stuffed Animal Friends Promote "PAWsitivity" and Kindness ST. LOUIS , Dec. 17, 2025 /PRNewswire/ -- Build-A-Bear, the beloved brand and iconic retail experience known for its mission of "adding a little more heart to life," is launching a new original animated series, KABU, based on a fun group of stuffed animal friends endowed with endless "PAWsitivity.

Build-A-Bear Workshop reported a decline in third-quarter profitability due to tariffs and related costs. The retailer expects to take an $11 million hit from tariffs in fiscal 2025.

Build-A-Bear Workshop remains a high-conviction long-term holding, with recent price weakness offering an attractive entry point. Despite a mixed Q3—EPS beat but revenue miss—BBW reaffirmed full-year guidance, highlighting resilient fundamentals and record year-over-year growth. Rapid expansion, a debt-free balance sheet, and aggressive buybacks underpin BBW's investment case and support expectations for high-single-digit growth.

Build-A-Bear stock has outperformed the S&P 500 over multiple time horizons since 2020. The company's diversified business model has helped produce record revenue and profits.

Build-A-Bear Workshop CEO Sharon Price John says the overseas stuffed-teddy market is a “bear market."

Build-A-Bear is expanding into new markets. Sales are rising, but costs are growing faster.