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Here are a few analogies to describe Build-A-Bear Workshop:

• Build-A-Bear is like the **Chipotle for stuffed animals**.
• Build-A-Bear is like **American Girl, but for customizable plush animals**.

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• Customizable Stuffed Animals: Customers select an unstuffed plush, participate in the stuffing process, and personalize it with sounds, scents, and accessories to create a unique toy.
• Stuffed Animal Apparel and Accessories: A wide range of clothing, shoes, glasses, and other adornments are sold to dress and further personalize the plush creations.
• Birthday Party Packages and Group Events: Build-A-Bear stores offer facilitated party experiences for children and groups, allowing attendees to create their own bears as part of the celebration.
• Pre-made Stuffed Animals and Gift Sets: The company also sells ready-to-purchase stuffed animals, often themed or pre-dressed, and curated gift sets both in stores and through its e-commerce platform.

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Build-A-Bear Workshop (symbol: BBW) primarily sells to **individuals** (Business-to-Consumer or B2C model) rather than other companies. Its core business revolves around direct sales through its retail stores and e-commerce platform, offering customers the interactive experience of creating personalized stuffed animals.

Based on this, here are the three primary categories of individual customers Build-A-Bear Workshop serves:

1. Children and Families

   This is the foundational customer base for Build-A-Bear Workshop. Children, typically between the ages of 3 and 12, are the primary enthusiasts who enjoy the hands-on experience of building a stuffed animal, choosing outfits, and participating in the "heart ceremony." Parents, guardians, and other family members facilitate these visits, often for birthdays, special occasions, school holidays, or as a family outing. The brand's family-friendly atmosphere and focus on creating memorable experiences directly appeal to this demographic.

2. Adult Collectors and Pop Culture Enthusiasts

   In recent years, Build-A-Bear has significantly expanded its appeal to adult customers through strategic licensing partnerships with popular media franchises. This category includes adults who collect merchandise related to franchises like Disney, Star Wars, Pokémon, Harry Potter, Marvel, Animal Crossing, and various anime. These customers are often keen to acquire limited-edition or exclusive plush characters, viewing them as collectible items rather than just children's toys. The nostalgia factor also plays a significant role for older consumers.

3. Gift-Givers for All Ages

   Build-A-Bear products are a popular choice for individuals looking to give personalized and unique gifts for a wide array of occasions. This category encompasses people buying gifts for newborns, graduations, anniversaries, Valentine's Day, Mother's Day, or even as comfort items during difficult times. The ability to customize the stuffed animal, add personalized sounds, and dress it in specific outfits makes it an appealing and thoughtful present for recipients of any age, including adults, teenagers, and, of course, children.

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Sharon Price John, President & Chief Executive Officer

Sharon Price John became President and CEO of Build-A-Bear Workshop in 2013, leading a strategic evolution and diversification of the business model that included an initial financial turnaround. Before joining Build-A-Bear, she served as President of the Stride Rite Children's Group, a division of Wolverine Worldwide. Her background also includes senior roles at Hasbro, such as SVP/General Manager of the Global Preschool Business Unit and SVP/General Manager of the U.S. Toy division, overseeing brands like Transformers and My Little Pony. She also worked at Mattel, including as VP of International for the Disney business unit, and at Vtech Toys. Ms. John founded Checkerboard Toys in 2000, serving as its CEO before joining Hasbro in 2002. She currently serves on the board of directors for Jack in the Box.

Voin Todorovic, Chief Financial Officer

Voin Todorovic joined Build-A-Bear Workshop as Chief Financial Officer in September 2014. Prior to this, he was employed at Wolverine Worldwide, Inc., where he was the head of finance and operations for its Lifestyle Group, which included brands such as Sperry Top-Sider, Hush Puppies, Keds, and Stride Rite. From 2011 to 2013, Mr. Todorovic was Vice President—Finance and Administration of the Stride Rite Children's Group. His earlier career included positions of increasing responsibility at Collective Brands, Inc. and Payless ShoeSource. He previously worked with Sharon Price John at Stride Rite Children's Group.

Chris Hurt, Chief Operations Officer

Chris Hurt became Chief Operations Officer of Build-A-Bear Workshop in April 2015. Before joining Build-A-Bear, Mr. Hurt held various senior leadership roles at American Eagle Outfitters, Inc. from 2002 to 2015, including Senior Vice President, North America. His professional experience also includes positions at Polo Ralph Lauren and The Procter & Gamble Company.

Yevgeny Fundler, Chief Legal Officer and Secretary

Yevgeny Fundler was appointed Chief Legal Officer and Secretary of Build-A-Bear Workshop, effective August 4, 2025. In this role, he is responsible for the company's legal, corporate governance, and disclosure matters. Mr. Fundler previously led the law departments of publicly traded companies such as Benson Hill, Inc. and American Railcar Industries, Inc. He also served as General Counsel of WestPoint Home LLC and as in-house counsel with Icahn Enterprises L.P. and Icahn Associates.

David Henderson, Chief Revenue Officer

David Henderson joined Build-A-Bear Workshop as Chief Revenue Officer in September 2024. He has over twenty years of global experience in driving growth and innovation for leading consumer brands. Prior to Build-A-Bear, Mr. Henderson served as Chief Commercial Officer at Melissa & Doug. He also held senior global leadership positions at prominent companies like Newell Brands (Global Baby Gear, Graco & Baby Jogger) and Hasbro.

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The public company Build-A-Bear Workshop (BBW) faces several key risks to its business operations and financial performance.

The most significant risk is a **weakening economy and its impact on consumer discretionary spending**. A continued economic downturn, higher-for-longer inflation, and potential increases in unemployment could lead to declining net retail sales and pre-tax income for Build-A-Bear Workshop. The company's performance is significantly tied to broader economic trends and consumer sentiment, as its products are often considered discretionary purchases.

Another key risk is **changing consumer interests and a potential decline in demand for its interactive experience and products**. Build-A-Bear Workshop's business relies on the continued appeal of its "make-your-own stuffed animal" experience and related merchandise. A decline in demand, or a misjudgment of consumer preferences, fashion trends, or the demand for licensed products, could negatively affect the business.

Finally, **tariffs and supply chain disruptions** pose a considerable risk to Build-A-Bear Workshop. The company purchases most of its merchandise from foreign countries, primarily China and Vietnam. Tariffs have already had a material financial impact, influencing cost of goods and profit margins. Any event causing a disruption in imports, including increased import restrictions or other supply chain challenges, could adversely affect the business.

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One clear emerging threat for Build-A-Bear Workshop (BBW) is the increasing engagement of children with virtual worlds and digital companionship platforms. As technologies like augmented reality (AR) and virtual reality (VR) become more mainstream, and platforms like Roblox, Minecraft, and Fortnite continue to evolve, children are able to create, customize, and interact with digital avatars, virtual pets, and companions within these digital environments. This trend directly competes with Build-A-Bear's core offering of customizable physical companions and experiential retail. The digital alternatives often offer continuous interaction, boundless customization possibilities, and social connectivity, potentially diverting children's attention, screen time, and parental discretionary spending from physical toys and in-store experiences.

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Build-A-Bear Workshop's primary products and services are centered around interactive experiential retail for stuffed animals and plush toys.

Stuffed Animals and Plush Toys Market

• Globally, the stuffed animals and plush toys market was valued at approximately USD 12.65 billion in 2024, with projections to reach USD 26.23 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.35% from 2025 to 2033. Another estimate places the global market size at USD 12.01 billion in 2025, expanding to USD 24.02 billion by 2034 with an estimated CAGR of 8%.
• In the U.S., the stuffed animals and plush toys market was estimated at USD 3.40 billion in 2023 and is expected to grow to USD 5.13 billion by 2030, with a CAGR of 6.1% from 2024 to 2030. The U.S. market is projected to be USD 4.11938 billion in 2025. North America holds the dominant share in the global stuffed animals and plush toys market, with the U.S. being a significant contributor.

Experiential Retail Market

• The global experiential retail market, which involves creating immersive and memorable shopping experiences, reached approximately USD 132 billion in 2025. This market is experiencing rapid growth, with projections to surpass USD 543 billion by 2035, at a CAGR of around 15.2% between 2025 and 2035.
• In North America, the experiential retail market is projected to grow from USD 17.224 billion in 2024 to an estimated USD 26.6345 billion by 2032, with a CAGR of 5.6%. The United States leads the North American market, accounting for nearly 75% of its share.

Broader Toy Market

As Build-A-Bear Workshop operates within the broader toy industry, these market sizes provide additional context:

• The global toy market size was estimated at USD 114.4 billion in 2024 and is expected to grow to USD 203.1 billion by 2034, at a CAGR of 6%. Another source values the global toys market at USD 113.94 billion in 2024, projected to reach USD 196.3 billion by 2033, growing at a CAGR of 6.2% during 2025-2033. For the broader "toys and games" market, the global size was estimated at USD 324.66 billion in 2023 and is projected to reach USD 439.91 billion by 2030, with a CAGR of 4.3% from 2024 to 2030.
• The U.S. toy market was valued at USD 29.8 billion in 2024 and is estimated to reach USD 55.9 billion by 2033, exhibiting a CAGR of 7.2% from 2025-2033. Other estimates for the U.S. toy market indicate a size of approximately USD 40.09 billion in 2024, projected to reach USD 55.105 billion by 2032 with a CAGR of 3.78% from 2025 to 2032. The total U.S. toy industry market size for 2024 was approximately USD 42.0 billion.

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Build-A-Bear Workshop (BBW) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. Expansion of Retail Footprint, Particularly International and Partner-Operated Locations: The company plans aggressive global expansion, focusing on "asset-light," partner-operated stores in high-traffic tourist destinations and international markets. Build-A-Bear aims to open at least 60 new locations in fiscal year 2025, an increase from its previous target of 50. A significant new multi-level experiential store is slated to open in Orlando's ICON Park by the first half of 2026. This expansion strategy allows the company to scale its presence with reduced capital intensity.
2. Growth in the Commercial Segment and Wholesale Business: Build-A-Bear anticipates substantial growth from its commercial segment, with expectations of at least a 20% increase in revenue for 2025. This includes leveraging the brand's power for multi-channel expansion into additional points of sale through a wholesale business model, extending its reach beyond traditional retail locations.
3. Introduction of New Product Categories and Targeting the "Kidult" Market: The company is focused on introducing new product categories, evidenced by the continued success of lines such as the Mini Beans collection and a broader collectibles plush line. A significant growth area involves extending consumer appeal to the "growing over 18 kidult segment," which includes higher-value collectors and gift-givers.
4. Enhanced Digital Transformation and Omnichannel Engagement: Digital initiatives and strategic partnerships are crucial for extending customer engagement beyond physical stores and addressing challenges in traditional retail traffic. The company’s experiential model, combined with e-commerce and licensing channels, continues to drive resilience and customer engagement through these digital efforts.

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Share Repurchases

• Build-A-Bear Workshop utilized $31 million to repurchase over 1 million shares in fiscal 2024.
• For the first half of fiscal 2025, the company used $7.3 million to repurchase 167,585 shares of its common stock.
• A new $100 million share repurchase program was authorized in September 2024, with approximately $80.3 million remaining as of August 27, 2025, and is authorized through September 30, 2028.

Capital Expenditures

• Capital expenditures were $19.3 million in fiscal 2024 and $18.3 million in fiscal 2023.
• For fiscal 2025, Build-A-Bear has guided for capital expenditures in the range of $20 million to $25 million.
• The primary focus of capital expenditures includes investments in growth and technology, store maintenance, and expanding its global retail footprint, with an emphasis on "asset-light," partner-operated models in high-traffic areas and tourist destinations.