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.
In Item 2, management said the quarter was shaped by tariff developments and ongoing trade uncertainty. After U.S. court rulings on tariffs imposed under the International Emergency Economic Powers Act, the company said it recorded an approximately $13.2 million tariff refund receivable, recognized a $10.4 million benefit in cost of merchandise sold-retail for the 13 weeks ended May 2, 2026, and reduced inventory by $2.8 million. Of that $10.4 million benefit, $7.0 million related to prior fiscal year costs.
Management said the company’s business depends heavily on imported merchandise, with the vast majority of products sourced from vendors outside the U.S. It said it has shifted sourcing primarily to Vietnam to reduce China exposure, but still faces tariff pressure on cost structure and product margins. The company also said it is monitoring the timing and amount of any remaining tariff refunds, as well as possible new tariffs and retaliatory actions.
The filing also highlighted the company’s operating footprint. As of May 2, 2026, Build-A-Bear had 669 global locations, including 376 corporately managed locations, 181 partner-operated locations, and 112 international franchise locations. During the 2026 fiscal year to date, it added 7 net new experience locations: 1 corporately managed, 3 partner-operated, and 3 international franchise locations.
Build-A-Bear said its Direct-to-Consumer segment covers corporately managed stores in the U.S., Canada, Puerto Rico, the U.K., Ireland, and two e-commerce sites. The Commercial segment includes wholesale product sales and licensing, while International Franchising generates royalties plus product and fixture sales under franchise agreements. Following these announcements, the company's shares moved -0.64%, and are now trading at a price of $33.585. For the full picture, make sure to review BUILD-A-BEAR WORKSHOP INC's 10-Q report.
