Key facts
- Build-A-Bear shares were down more than 29% in afternoon trading, on pace for a record daily percentage drop.
- The company lowered its fiscal 2026 revenue outlook to $500 million-$525 million from $530 million-$550 million.
- Build-A-Bear was unable to renew a multimillion-dollar partnership with Walmart.
- Chief Growth Officer David Henderson's employment was terminated.
- The company had already cut its full-year revenue forecast in May.
Build-A-Bear Workshop shares experienced a significant decline, heading for a record daily percentage drop, following a reduced revenue outlook and the termination of its chief growth officer. The company cited the failure to renew a substantial partnership with Walmart and slower-than-anticipated progress on other wholesale opportunities as key factors.
In response to these challenges, Build-A-Bear lowered its fiscal year 2026 revenue forecast to a range of $500 million to $525 million, down from the previously guided $530 million to $550 million. Analysts at D.A. Davidson & Co. noted that the updated outlook falls below consensus estimates across all line items and incorporates anticipated weaker profitability in the latter half of the year, partly due to ongoing tariff cost pressures.
The company's fiscal year outlook also accounts for $10 million to $11 million in ongoing tariff-related expenses. In addition to the financial revisions, Build-A-Bear terminated the employment of Chief Growth Officer David Henderson, effective Wednesday. This follows a previous reduction in the company's full-year revenue forecast in May, attributed to softer store traffic. The company also announced in March that its long-time CEO, Sharon Price John, would retire in June, with Chris Hurt set to succeed her.