Build-A-Bear Workshop Reports $52.2 Million Net Income and $529.8 Million Revenue for Fiscal Year 2026

Build-A-Bear Workshop, Inc. reported a net income of $52.2 million for the fiscal year ending January 31, 2026, a slight increase from $51.8 million in the previous fiscal year. The company's total revenues reached $529.8 million, up from $496.4 million in fiscal 2025, marking a 6.7% increase year-over-year. This growth was primarily driven by a 5.6% rise in net retail sales, which amounted to $486 million, alongside a significant 23.5% increase in commercial revenue, which reached $38.8 million. The company attributed its financial performance to a combination of increased store traffic, the opening of new locations, and a successful omnichannel strategy.

In terms of operational developments, Build-A-Bear expanded its global footprint, ending the fiscal year with 662 locations, including 375 corporately-managed stores, 178 partner-operated locations, and 109 international franchise locations. The company opened a net total of 64 new experience locations during the year, which included seven corporately-managed stores and 40 partner-operated locations. The average net retail sales per store for North American locations remained stable at approximately $1.2 million, reflecting the brand's strong market presence.

The company also faced challenges, particularly from inflationary pressures that impacted labor and merchandise costs. Selling, general, and administrative expenses rose to $229.2 million, accounting for 43.3% of total revenues, compared to 41.5% in the previous year. Despite these challenges, Build-A-Bear managed to maintain a gross profit margin of 55.8%, an increase from 54.9% in fiscal 2024, due to lower merchandise and freight costs, which partially offset higher occupancy and tariff-related expenses.

Looking ahead, Build-A-Bear is focused on continuing its strategic initiatives, including expanding its retail footprint and enhancing its digital capabilities. The company plans to invest in new store formats and further develop its e-commerce platform to capture a broader customer base. However, it remains cautious about potential economic uncertainties, including ongoing inflation and changes in trade policies, which could affect consumer spending and operational costs. The company is committed to monitoring these factors closely and adjusting its strategies as necessary to sustain growth and profitability.