Build-A-Bear Q4 revenue rises 2.7% to record high, raises quarterly dividend

Overview

• US plush toy retailer's Q4 revenue rose 2.7% to record, full-year revenue up 6.7%

• Q4 diluted EPS fell to $1.26 from $1.62 on higher tariffs and labor costs

• Company raised quarterly dividend by 4.5% and continued share repurchases

Outlook

• Build-A-Bear sees fiscal 2026 total revenue growing in the mid-single-digit percentage range

• Company expects fiscal 2026 pre-tax income to range from a mid-single-digit decline to low-single-digit growth

• Outlook factors in tariffs, labor costs, freight expense, and ongoing inflationary challenges

Result Drivers

• TARIFFS AND COST INCREASES - Q4 profit was hurt by about $6 mln in tariffs and related costs, as well as higher medical and labor expenses, per company

• COMMERCIAL AND FRANCHISE GROWTH - Commercial and international franchising segment revenues rose 37.5% in Q4, supporting overall revenue growth

• HIGHER SG&A EXPENSES - SG&A expenses increased due to higher compensation, marketing, and inflationary pressures

Company press release: ID:nBw9yVxX1a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

• Wall Street's median 12-month price target for Build-A-Bear Workshop Inc is $70.00, about 61% above its March 11 closing price of $43.49

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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