Build-A-Bear Workshop has continued to see significant gains in the stock market, even as the broader toy industry faces challenges from tariffs and declining mall traffic. Since the beginning of 2025, Build-A-Bear’s shares have risen by more than 60%, reaching just under $72 per share as of Tuesday afternoon. This performance stands out against the S&P 500’s increase of about 13% over the same period. Five years ago, Build-A-Bear’s stock was trading below $3.
The toy industry has experienced a slowdown in recent years, according to Neil Saunders, managing director at GlobalData. However, he notes that craft-oriented products have performed well since the COVID-19 pandemic, which aligns with Build-A-Bear’s business model that invites customers into stores to create their own plush toys.
“The mall may not be a destination, but Build-A-Bear often is — because it’s often a planned trip,” Saunders said. “It’s a store within a mall that many consumers make a beeline for.”
While malls have struggled with lower foot traffic over time, Build-A-Bear stores continue to attract visitors. The company has reported record profits in recent quarters. In August, executives announced what they described as the best second quarter and first half results in company history since its founding in 1997.
For the first half of fiscal year 2025, Build-A-Bear reported revenues of $252.6 million and pre-tax income of $34.9 million—an increase of 11.5% and 31.5%, respectively, compared to last year.
Despite concerns about rising costs due to tariffs imposed on imports from China and Vietnam—where much of its merchandise is sourced—the company raised its financial outlook for the full year.
“Tariffs are a real cost that we are facing,” Voin Todorovic, chief financial officer at Build-A-Bear, said during an earnings call on August 28. He cited current U.S. import tax rates of 30% on Chinese goods and 20% on Vietnamese goods as having already impacted product costs in North America and expected further effects later this year.
Todorovic explained that preparations such as increasing inventory levels have helped reduce some tariff impacts and said consumer price increases would remain limited.
Saunders noted that most of what Build-A-Bear purchases are materials rather than finished goods or labor-intensive items: “what Build-A-Bear generally buys is materials.” This approach can help offset some tariff-related costs by allowing greater sourcing flexibility and reducing labor expenses.
However, Saunders also pointed out that all companies will feel some effect from tariffs: “everyone is going to be affected by tariffs and Build-A-Bear isn’t an exception.” He added that customers might accept higher prices because they value the experience offered by making their own stuffed animals: consumers will probably “eat that extra cost because they’re paying for the entertainment value.”
Todorovic estimated during August’s earnings call that tariffs would cost less than $11 million for fiscal year 2025 but expressed confidence that overall earnings would match or slightly exceed those from last year.
