Build-A-Bear Workshop Reports 11.1% Revenue Growth and 40.5% Increase in Net Income for Q2 Fiscal 2025

Build-A-Bear Workshop, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2025, with total revenues reaching $124.2 million, an 11.1% rise from $111.8 million in the same period last year. The growth was primarily driven by a 10.8% increase in net retail sales, which amounted to $114.6 million, up from $103.5 million. The company also saw a significant boost in commercial revenue, which rose 18% to $8.6 million, attributed to higher sales to wholesale customers, including new accounts from the opening of 50 partner-operated locations since the previous year.

In terms of profitability, Build-A-Bear's net income for the quarter was $12.4 million, compared to $8.8 million in the prior year, reflecting a 40.5% increase. This resulted in a diluted earnings per share of $0.94, up from $0.64. The company's gross profit also improved, increasing to $71.5 million, with a gross margin of 57.6%, up from 54.3% in the same quarter last year. The increase in gross margin was primarily due to improved merchandise margins.

Operationally, Build-A-Bear expanded its footprint, opening a net of 29 new retail experience locations in the first half of fiscal 2025, with plans for at least 60 new locations by the end of the fiscal year. As of August 2, 2025, the company operated 368 corporately-managed stores, 157 partner-operated locations, and 102 international franchised stores. The company’s direct-to-consumer segment accounted for 92% of total revenues, highlighting the importance of its retail and e-commerce operations.

The company’s cash position also strengthened, with cash and cash equivalents increasing to $39.1 million from $25.2 million a year earlier. Cash provided by operating activities surged to $32.0 million, a significant increase from $12.4 million in the prior year, driven by higher net income and improved working capital management. However, cash used in financing activities decreased significantly, reflecting a reduction in share repurchases compared to the previous year.

Looking ahead, Build-A-Bear aims to continue its growth trajectory by focusing on global expansion, enhancing its digital transformation, and driving profitable growth through strategic investments. The company remains committed to returning capital to shareholders while navigating ongoing inflationary pressures and market conditions. The management expressed confidence in the company's ability to adapt and thrive in the evolving retail landscape, leveraging its unique experiential offerings and strong brand presence.