
BuildABear (BBW) Stock Forecast & Price Target
BuildABear (BBW) Analyst Ratings
Bulls say
Build-A-Bear Workshop Inc. experienced a 4.7% increase in net retail sales, driven by successful product lines and a positive response to online trends, while the higher-margin commercial segment's revenue contribution rose to 7.2%, reflecting effective revenue mix management. The company reported a 20.5% year-over-year revenue increase in its commercial and international franchising segments, supported by a significant expansion of third-party store locations, which rose 45% year-over-year. Additionally, Build-A-Bear's EBITDA reached $31.1 million, up 13.5% year-over-year, with margins improving to a record 20.7% due to reduced discounting and strategic cost control measures.
Bears say
Build-A-Bear Workshop Inc. is expected to face significant challenges due to reliance on China for product manufacturing, which will incur material tariffs that are projected to negatively impact pre-tax income by at least $5 million, resulting in a low single-digit decline to a low single-digit increase for the fiscal year 2025. Despite lowering the earnings per share (EPS) estimate for FY25 to $3.82 and projecting a modest revenue increase to $515.7 million, the company's dependence on China continues to pose risks, influenced by potential declines in mall and tourist activity affecting store sales. Although Build-A-Bear holds a strong balance sheet with no debt and high margins, the unfavorable economic conditions related to its manufacturing and sales channels contribute to a negative overall outlook for the stock.
This aggregate rating is based on analysts' research of BuildABear and is not a guaranteed prediction by Public.com or investment advice.
BuildABear (BBW) Analyst Forecast & Price Prediction
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