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Build-A-Bear cuts guidance after weaker traffic, then posts Halloween surge
Management said the Halloween launch delivered the company’s third-highest US e-commerce sales week ever, following a softer summer that led to lower full-year guidance.
Build-A-Bear says it tempered expectations for the fiscal year after its summer product push underperformed and store traffic softened, prompting management to cut full-year guidance on its second-quarter fiscal 2026 earnings call on August 27, according to Yahoo Finance.
The company, however, pointed to a recent counter-signal from a Halloween launch, saying the assortment generated its third-highest US e-commerce sales week ever, trailing only Black Friday weeks in 2020 and 2025. CEO J. Christopher Hurt also highlighted the reintroduced Poseable Bat and a new Jumping Spider, along with strength from core products such as the dressable Chummy Shark, which sold out during the quarter, and higher dollars per transaction supported by clothing and accessory attachment.
Beyond direct-to-consumer, Build-A-Bear ended the quarter with 674 locations across 37 countries and expects at least 50 net new openings this year, mostly via international partners. The company also cited an Orlando ICON Park multilevel location planned for third-quarter opening, plus a McDonald’s Happy Meal collaboration launching in the United Kingdom.
Build-A-Bear also returned cash to shareholders, buying back $8.5 million in stock during the quarter and reducing its share count by more than 5% over the trailing twelve months, as it tries to balance a disappointing quarter with momentum from later seasonal releases.