BuildABear (BBW) Stock Forecast & Price Target

Build-A-Bear Workshop has demonstrated a positive financial trajectory, with a notable 25% year-over-year increase in commercial revenue, fueled by international expansion and the potential for wholesale relationships, particularly with products like Mini Beans. The company's third-quarter financial performance indicated a significant 9.2% rise in EBITDA, reaching record levels, while earnings per share (EPS) also showed robust growth at 18.1%. With no changes to its annual guidance for mid to high single-digit revenue growth and projected pre-tax revenue of $62 to $70 million, Build-A-Bear Workshop is positioned to meet or exceed market expectations in the coming quarter.

Build-A-Bear Workshop's financial outlook appears challenging due to anticipated fluctuations in pre-tax income, which could decline up to 18.9% year-over-year in 4QFY25 when excluding tariff impacts, alongside persistent pressure on selling, general, and administrative expenses. Despite reporting record results in 3QFY25, the company experienced a top-line miss attributed to tough comparisons against the prior year's launch of the Blue’s Clues license, indicating potential difficulties in maintaining revenue growth amid aggressive market expectations. Moreover, a year-over-year decline of 7.2% in EPS, coupled with broader concerns regarding consumer spending during the holiday season and the adverse effects of rising tariffs, contributes to a negatively pressured stock sentiment, exacerbated by a significant drop of over 35% since reaching its 52-week high following 2Q earnings.