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Build-A-Bear's $11M Tariff Hit Amidst Retail Comeback
20 Dec, 2025
Summary
- Build-A-Bear faced near collapse before a successful turnaround.
- Tariffs are projected to cost the company $11 million in fiscal 2025.
- The company expects to reach $500 million in annual revenue for the first time.
Over the past decade, Build-A-Bear has executed a significant turnaround, shifting from a struggling business to a profitable enterprise. CEO Sharon Price John took the helm in 2013, recognizing the brand's strong public connection despite financial difficulties, which included a $49 million loss in fiscal 2012.
The company strategically invested in e-commerce and diversified sales beyond traditional malls. This pivot has led to virtually all stores becoming profitable, with the stock price surging significantly, reaching an all-time high earlier in the year. Despite these successes, the business faces challenges, including tariffs on over 90% of its imported products.
Build-A-Bear anticipates an $11 million impact from tariffs in fiscal 2025 and has also noted a slowdown in customer traffic during a recent government shutdown. Nevertheless, the company is expected to achieve $500 million in annual revenue for the first time, outperforming many retail competitors by offering a unique, personalized toy-making experience.
