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Here are a couple of brief analogies for Build-A-Bear Workshop:

• The Chipotle for plush toys.

• A LEGO Store, but for customizable stuffed animals.

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• Plush Products to be Stuffed: Unstuffed plush animals that customers can personalize and fill in-store.
• Pre-Stuffed Plush Products: Ready-made stuffed animals available for immediate purchase.
• Sounds and Scents: Customizable additions that can be inserted into stuffed animals for enhanced personalization.
• Clothing, Shoes, and Accessories: A range of apparel and items designed to dress up the stuffed animals.
• Other Toy and Novelty Items: Additional merchandise beyond plush animals and accessories.

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Build-A-Bear Workshop (BBW) primarily sells its products directly to individuals through its retail stores and e-commerce platforms. The company serves the following major categories of individual customers:

• Children and Families: This is the core demographic, comprising children who engage in the interactive experience of creating a plush animal in-store, along with their parents, grandparents, and guardians who facilitate these purchases or buy products as gifts. The company's experiential retail model is largely designed to appeal to this segment.

• Gift-Givers: Individuals purchasing personalized plush animals and related accessories as gifts for birthdays, holidays, celebrations, or special occasions. While often for children, these gifts can also be for teenagers or adults looking for a unique and sentimental present.

• Adult Collectors and Pop Culture Enthusiasts: Build-A-Bear collaborates with popular entertainment franchises (such as Disney, Marvel, Star Wars, Pokémon, and Animal Crossing) to create licensed plush characters. This attracts adult fans and collectors of these franchises, as well as long-time Build-A-Bear enthusiasts who collect special edition or themed items for themselves.

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Sharon Price John, President and Chief Executive Officer

Sharon Price John has served as President and CEO of Build-A-Bear Workshop, Inc. since June 2013. She has over 30 years of experience, primarily in the children's sector, where she has been recognized as a turnaround and change agent. Before joining Build-A-Bear, she was President of the Stride Rite Children's Group LLC at Wolverine World Wide from 2010 to 2013. Her extensive toy industry experience includes senior management roles at Hasbro, where she served as General Manager and Senior Vice President of Global Preschool and the U.S. Toy Division, and at Mattel, working with the Barbie brand and in the Disney licensing division. Ms. John also founded and served as CEO of Checkerboard Toys. Her early career involved advertising at agencies such as DDB Worldwide and Bates USA. She currently serves on the board of directors for Jack in the Box. It has been announced that Ms. John intends to retire effective June 11, 2026.

Voin Todorovic, Chief Financial Officer

Voin Todorovic joined Build-A-Bear Workshop in September 2014 as Chief Financial Officer. Prior to his role at Build-A-Bear, Mr. Todorovic was at Wolverine Worldwide, Inc., a global footwear and apparel company. There, he served as the head of finance and operations for its Lifestyle Group, which includes brands like Sperry Top-Sider, Hush Puppies, Keds, and Stride Rite. From 2011 to 2013, he was Vice President—Finance and Administration of the Stride Rite Children's Group business, and from 2010 to 2011, he was Vice President of the Performance + Lifestyle Group. Mr. Todorovic's career also includes positions of increasing responsibility at Collective Brands, Inc. and Payless ShoeSource.

J. Christopher Hurt, Chief Operations and Experience Officer (Incoming Chief Executive Officer on June 11, 2026)

J. Christopher Hurt joined Build-A-Bear Workshop in April 2015 as Chief Operations Officer, and effective June 2020, he holds the title of Chief Operations and Experience Officer. It has been announced that Mr. Hurt will succeed Sharon Price John as Chief Executive Officer on June 11, 2026, as part of a multi-year planned succession process. Before joining Build-A-Bear, Mr. Hurt was at American Eagle Outfitters, Inc. from 2002 to 2015, holding various senior leadership roles including Senior Vice President, North America. He also held positions at Polo Ralph Lauren and The Procter & Gamble Company.

Jenn Kretchmar, Chief Digital and Merchandising Officer

Jenn Kretchmar joined Build-A-Bear Workshop in August 2014 as Chief Product Officer and Innovation Bear. In March 2016, she was named Chief Merchandising Officer, and effective June 2020, she assumed the role of Chief Digital and Merchandising Officer. Prior to Build-A-Bear, Ms. Kretchmar served as Senior Vice President of Product and Brand Management with the Stride Rite Children's Group of Wolverine Worldwide, Inc., where she was responsible for global product creation strategy for a diverse portfolio of children's footwear brands. Her experience also includes roles at The Timberland Company, Goldbug, and the United States Department of Agriculture Foreign Service. Ms. Kretchmar is also a member of the Board of Directors of Mace Security International, Inc..

Julia Fitzgerald, Chief Marketing Officer

Julia Fitzgerald was appointed Chief Marketing Officer of Build-A-Bear Workshop in March 2023. She brings more than 20 years of experience in creating and implementing marketing strategy, communications, and brand development, with a proven track record of driving digital transformations. Her previous experience includes serving as Chief Marketing Officer at the American Lung Association, and senior-level marketing positions at companies such as Sylvan Learning, Sears, VTech, and Hallmark.

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Key Risks to Build-A-Bear Workshop

1. External Cost Pressures (Tariffs, Inflation, and Labor Costs): Build-A-Bear Workshop is significantly exposed to external cost pressures, including tariffs and inflation, which directly impact its cost of goods sold and overall profitability. Management has explicitly noted that tariffs are anticipated to result in substantial cost headwinds, with an estimated impact of nearly $11 million for fiscal year 2025 and a reduction of approximately $0.65 in earnings per share (EPS) for the full year. Additionally, rising operational costs, such as increased labor and medical expenses, further contribute to margin pressure and can influence consumer discretionary spending.
2. E-commerce Challenges and Evolving Digital Landscape: The company faces challenges in its e-commerce segment due to evolving consumer preferences for digital entertainment and disruptions in the digital advertising landscape. Build-A-Bear Workshop has experienced delays in planned e-commerce advancements, largely attributable to ongoing IT work to upgrade a legacy inventory management system. Furthermore, changes in digital advertising dynamics and the rollout of AI-driven search alterations by platforms like Google have led to declining e-commerce visibility and suppressed traffic to buildabear.com. This resulted in a decrease in e-commerce demand by 13.6% for Q4 and 5.5% for the full year.
3. Intense Competition and Reliance on Discretionary Consumer Spending: Build-A-Bear Workshop operates in a highly competitive market with low barriers to entry. It faces competition from direct rivals offering personalized toy experiences, traditional toy manufacturers, online retailers, and smaller independent operators. The company's business model relies heavily on discretionary consumer spending, making it susceptible to macroeconomic conditions, economic downturns, and shifts in consumer confidence, which can impact sales of non-essential items like toys and entertainment.

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The clear emerging threat to Build-A-Bear Workshop is the increasing shift of children's play and engagement towards digital platforms, virtual worlds, and online communities where they can create, customize, and interact with virtual avatars and digital pets. This trend, exemplified by platforms like Roblox and Minecraft, offers an alternative, often more interactive and persistent, form of companionship and customization that directly competes with the physical, in-store experiential creation of a plush animal.

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Build-A-Bear Workshop (BBW) anticipates several key drivers for future revenue growth over the next two to three years:

1. International Expansion and New Locations: The company plans to significantly expand its global footprint by adding at least 50 net new experience locations in 2026, with the majority expected to be international partner-operated stores. Build-A-Bear has already doubled its global presence to 36 countries over the past two years. This expansion is expected to accelerate revenue growth as the year progresses.
2. Growth in Wholesale Channel: Build-A-Bear is scaling its wholesale business, with a notable expansion of its "Mini Beans" product line into approximately 1,500 Walmart stores. The Mini Beans line has already sold over 3 million units since its launch, indicating strong potential for further wholesale growth.
3. New Product Launches and Intellectual Property (IP) Development: The company is focused on introducing new products and developing its intellectual property and content. An example is the "Kabu series," which has generated over 1 million views and more than $1 million in plush sales, showcasing the potential for new offerings to drive revenue.
4. Commercial Segment Expansion: Build-A-Bear projects substantial growth in its Commercial segment, with an expected revenue increase of at least 20% for the year, heavily weighted towards the second half. This indicates a strategic focus on expanding revenue streams beyond direct-to-consumer retail.
5. Digital and E-commerce Enhancements: Despite facing recent challenges in e-commerce, the company is reinvesting in its digital infrastructure and plans to implement consumer-facing upgrades, such as the online digitization of its "Record Your Voice" offering. These efforts are aimed at optimizing digital marketing capabilities and improving the online shopping experience to drive future e-commerce demand.

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Share Repurchases

• Build-A-Bear Workshop adopted a new share repurchase program of up to $100 million on September 11, 2024, authorized through September 30, 2028.
• Under a previous $50 million program authorized in August 2022, approximately $44 million was utilized to repurchase over 1.9 million shares by September 11, 2024.
• For fiscal year 2025, which ended January 31, 2026, the company utilized $27.5 million in cash to repurchase 508,945 shares. As of March 12, 2026, $55.0 million remained under the $100 million authorization.

Capital Expenditures

• For fiscal year 2025, ended January 31, 2026, capital expenditures totaled $25.5 million.
• Build-A-Bear Workshop projects capital expenditures for fiscal year 2026 to be in the range of $22 million to $25 million.
• The primary focus of these expenditures for 2026 is strategic growth and expansion, including the addition of at least 50 net new experience locations, predominantly internationally.