Build-A-Bear reports higher Q1 profit despite revenue softness, updates FY guidance

Build-A-Bear Workshop (NYSE:BBW) today announced its financial results for the first quarter of fiscal year 2026 ended May 2, 2026, delivering expanded bottom-line profitability and improved margins despite experiencing a slight contraction in its top-line revenue.

The experiential retailer posted total first-quarter revenues of $125.3 million, representing a modest decline compared to the $128.4 million reported in the corresponding period of the prior fiscal year.

The drop in revenue points to a shifting retail environment, though operational efficiency helped protect corporate profitability.

The expansion in profitability trickled down to the company's net earnings performance.

Diluted earnings per share (EPS) for the first quarter totaled $1.45, climbing from the $1.17 reported in the first quarter of fiscal 2025.

On an adjusted basis, diluted EPS reached $1.03 for the three-month period.

Build-A-Bear maintained its active capital allocation strategy during the quarter, returning a total of $14.2 million to its shareholders.

This capital return was completed through a combination of open-market share repurchases and regular quarterly dividend payments, highlighting management's ongoing commitment to shareholder value.