BUILD-A-BEAR WORKSHOP INC has recently released its 10-Q report. The company is a mall-based specialty retailer founded in 1997 and headquartered in Saint Louis, Missouri. It operates through three segments—Direct-to-Consumer, Commercial, and International Franchising—and sells plush products, accessories, and related merchandise through stores, e-commerce sites, and third-party marketplaces.
Management said the quarter was shaped by tariff developments and continued uncertainty around trade policy. On February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act, and on March 4, 2026, the Court of International Trade ordered U.S. Customs and Border Protection to begin refunding those duties. Build-A-Bear said it expects a refund of about $13.2 million, which it recorded in receivables, net, and it recognized a $10.4 million benefit from tariffs in cost of merchandise sold-retail during the thirteen weeks ended May 2, 2026; $7.0 million of that related to prior fiscal year costs.
The company also reduced inventory carrying value by $2.8 million as of May 2, 2026, and said the related tariffed inventory is expected to be substantially sold in the second fiscal quarter of 2026. Management said the ultimate availability, timing, and amount of any remaining tariff refunds remain uncertain, while new tariffs and possible retaliatory actions continue to create uncertainty around costs and margins. Build-A-Bear said it imports the vast majority of its products from vendors outside the U.S. and has shifted sourcing primarily to Vietnam, but still faces substantial exposure to tariff-related cost pressure.
As of May 2, 2026, the company had 669 global locations, including 376 corporately managed stores, 181 partner-operated locations, and 112 international franchise locations. That total included 334 stores in the U.S. and Canada and 42 in the U.K. and Republic of Ireland. For the 2026 fiscal year to date, net new unit growth was 7 experience locations, consisting of 1 corporately managed location, 3 partner-operated locations, and 3 international franchise locations. Today the company's shares have moved -0.49% to a price of $33.635. For more information, read the company's full 10-Q submission here.
