How Build-A-Bear went from a penny stock to a retail winner
Build-A-Bear Workshop's business plummeted during the pandemic, but under CEO Sharon Price John, the company has undergone a significant turnaround.
TL;DR
- Build-A-Bear Workshop experienced a significant turnaround under CEO Sharon Price John, starting in 2013.
- The company reported a $49 million loss in fiscal 2012 before the turnaround.
- Key strategies included investing in e-commerce and diversifying sales channels beyond malls.
- Virtually all of Build-A-Bear's stores are now profitable.
- The company's stock reached an all-time high in September, up over 125% in two years.
- Tariffs are projected to hit the business by roughly $11 million in fiscal 2025, as over 90% of products are imported from China and Vietnam.
- A government shutdown in October slowed traffic.
- Analyst Eric Beder lowered projections and price targets due to lighter-than-expected revenue and tariff impacts.
- Build-A-Bear expects to reach $500 million in annual revenue for the first time.
- The brand's unique interactive experience is highlighted as a key differentiator.