Small Cap Consu Has Negative Outlook of BBW FY2027 Earnings

Key Points

• Small Cap Consu lowered Build-A-Bear’s FY2027 EPS estimate to $3.75 from $3.92, below the $3.96 consensus forecast. The firm projects $1.35 EPS for Q4 2027 and $3.95 for FY2028.
• Build-A-Bear’s latest quarter showed mixed results: EPS of $0.70 beat expectations of $0.64, but revenue fell 7.2% year over year to $115.3 million and missed estimates of about $120.8 million.
• Management cut full-year revenue guidance to $500 million–$525 million from $530 million–$550 million, while DA Davidson reduced its price target from $60 to $37 but maintained a “buy” rating. The stock opened at $29.88, near its 52-week low.

Build-A-Bear Workshop, Inc. (NYSE:BBW - Free Report) - Analysts at Small Cap Consu decreased their FY2027 earnings per share estimates for Build-A-Bear Workshop in a research report issued on Thursday, August 27th. Small Cap Consu analyst E. Beder now expects that the specialty retailer will post earnings of $3.75 per share for the year, down from their previous forecast of $3.92. The consensus estimate for Build-A-Bear Workshop's current full-year earnings is $3.96 per share. Small Cap Consu also issued estimates for Build-A-Bear Workshop's Q4 2027 earnings at $1.35 EPS and FY2028 earnings at $3.95 EPS.

Other equities research analysts have also recently issued research reports about the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Build-A-Bear Workshop in a research report on Monday, August 17th. DA Davidson dropped their target price on shares of Build-A-Bear Workshop from $60.00 to $37.00 and set a "buy" rating for the company in a research report on Friday. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $53.50.

Build-A-Bear Workshop Price Performance

BBW stock opened at $29.88 on Monday. Build-A-Bear Workshop has a 1-year low of $27.50 and a 1-year high of $75.85. The company has a market capitalization of $374.70 million, a price-to-earnings ratio of 7.41 and a beta of 1.10. The business has a 50 day simple moving average of $34.28 and a two-hundred day simple moving average of $37.88.

Build-A-Bear Workshop (NYSE:BBW - Get Free Report) last released its earnings results on Thursday, August 27th. The specialty retailer reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.64 by $0.06. The firm had revenue of $115.29 million during the quarter, compared to analysts' expectations of $120.81 million. Build-A-Bear Workshop had a return on equity of 29.85% and a net margin of 9.96%.

Hedge Funds Weigh In On Build-A-Bear Workshop

Several institutional investors have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Build-A-Bear Workshop in the 2nd quarter worth $245,000. California State Teachers Retirement System raised its position in shares of Build-A-Bear Workshop by 61,511.8% during the 2nd quarter. California State Teachers Retirement System now owns 414,031 shares of the specialty retailer's stock valued at $13,526,000 after buying an additional 413,359 shares in the last quarter. AXQ Capital LP raised its position in shares of Build-A-Bear Workshop by 26.1% during the 2nd quarter. AXQ Capital LP now owns 8,167 shares of the specialty retailer's stock valued at $250,000 after buying an additional 1,692 shares in the last quarter. Wellington Management Group LLP lifted its holdings in shares of Build-A-Bear Workshop by 108.9% in the 2nd quarter. Wellington Management Group LLP now owns 21,100 shares of the specialty retailer's stock valued at $646,000 after acquiring an additional 11,000 shares during the last quarter. Finally, Cannell Capital LLC bought a new position in shares of Build-A-Bear Workshop in the 2nd quarter valued at about $3,155,524. Institutional investors own 79.30% of the company's stock.

Insider Buying and Selling

In other news, Director George Carrara sold 3,000 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $34.52, for a total transaction of $103,560.00. Following the sale, the director directly owned 11,277 shares of the company's stock, valued at $389,282.04. This represents a 21.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sharon Price John sold 6,818 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $40.03, for a total value of $272,924.54. Following the sale, the director directly owned 181,653 shares in the company, valued at $7,271,569.59. This trade represents a 3.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.00% of the company's stock.

Build-A-Bear Workshop Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 25th were paid a $0.23 dividend. The ex-dividend date of this dividend was Thursday, June 25th. This represents a $0.92 dividend on an annualized basis and a yield of 3.1%. Build-A-Bear Workshop's payout ratio is presently 22.83%.

Key Stories Impacting Build-A-Bear Workshop

Here are the key news stories impacting Build-A-Bear Workshop this week:

• Positive Sentiment: Build-A-Bear reported fiscal second-quarter EPS of $0.70, ahead of the $0.64 analyst consensus. The company also generated $115.3 million in revenue and returned $22.7 million to shareholders through share repurchases during the first half. Build-A-Bear Workshop Reports Fiscal Second Quarter 2026 Results
• Positive Sentiment: DA Davidson maintained a “buy” rating while lowering its price target from $60 to $37. The revised target still implies potential upside from recent trading levels, although the reduction reflects more cautious expectations. Benzinga analyst price target report
• Positive Sentiment: The launch of an exclusive Sanrio Halloween collection, including Lloromannic plush characters Berry and Cherry, could support seasonal demand, customer engagement and licensing-related sales. Build-A-Bear Sanrio Halloween Collection
• Neutral Sentiment: Rosen Law Firm announced an investigation into potential securities claims, alleging that Build-A-Bear may have issued materially misleading business information. The announcement does not establish wrongdoing, but it adds legal and reputational uncertainty for investors. Rosen Law Firm investigation announcement
• Negative Sentiment: Second-quarter revenue fell 7.2% year over year to $115.3 million, below estimates near $121 million, while EPS declined from $0.94 a year earlier to $0.70. Build-A-Bear Q2 earnings and traffic report
• Negative Sentiment: Management cut fiscal-year revenue guidance to $500 million-$525 million from $530 million-$550 million, below consensus expectations of approximately $535.6 million. The company also fired its chief growth officer, intensifying concerns about execution and weakening customer traffic. Reuters Build-A-Bear outlook report

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc operates a specialty retail business focused on interactive “workshop” experiences that allow customers to create customized stuffed animals. Through its in-store and online platforms, the company offers a wide range of plush toys, apparel, accessories and sound modules, enabling guests to personalize each creation. In addition to its core bear products, Build-A-Bear has expanded its portfolio to include licensed characters from leading entertainment and media franchises.

Founded in 1997 by Maxine Clark and headquartered in St.

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