Build-A-Bear Cuts Outlook, Fires Executive

Build-A-Bear Workshop said on Aug. 27, 2026, that it lowered its fiscal 2026 revenue and pre-tax income guidance after reporting weaker second-quarter results and disclosed the termination of its chief growth officer.

Second-Quarter Results and Guidance Cut

Build-A-Bear Workshop Inc. (NYSE: BBW) reported fiscal second-quarter 2026 revenue of $115.3 million, down 7.2% from $124.2 million a year earlier. Pre-tax income fell to $11.6 million from $15.3 million, while diluted earnings per share declined to $0.70 from $0.94.

The company lowered its full-year fiscal 2026 revenue guidance to a range of $500 million to $525 million from $530 million to $550 million and trimmed pre-tax income guidance to $60 million to $68 million from $72 million to $78 million. This marked the second guidance reduction in 2026 and placed the sales outlook below consensus estimates.

Management attributed the revision to weaker store traffic, an underperforming summer product assortment, and wholesale-timing issues, including the non-repeat of a prior-year multi-million-dollar Walmart program. The outlook also factored in roughly $10 million to $11 million in ongoing tariff-related costs and about $13 million linked to tariff-refund items within the pre-tax income framework.

Executive Change and Filing

The company disclosed in an Aug. 27 filing that it terminated Chief Growth Officer David Henderson without cause, effective Aug. 26, 2026. The separation package includes cash severance, health-care continuation, and vesting and forfeiture provisions. No replacement has been identified.