Build-A-Bear Workshop, Inc. NYSE: BBW

What we're investigating

Henzel Law is investigating potential securities claims on behalf of shareholders of Build-A-Bear Workshop, Inc. ("Build-A-Bear" or the "Company") (NYSE: BBW), following a steep stock decline after the Company's second-quarter fiscal 2026 results and reduced full-year outlook. No lawsuit has been filed yet in this matter, and no specific misrepresentation has yet been identified — the investigation centers on whether the Company's prior public statements adequately reflected the risks that materialized in its second-quarter results.

Background

On August 28, 2026, Build-A-Bear reported fiscal second-quarter 2026 revenue of $115.3 million for the 13 weeks ended August 1, down 7.2% from $124.2 million a year earlier — short of analyst estimates near $121 million. Net retail sales fell 7.1% to approximately $106.5 million, and consolidated e-commerce demand fell 15.6%. Pre-tax income declined to $11.6 million from $15.3 million, and diluted earnings per share fell to $0.70 from $0.94. The Company also disclosed it had been unable to renew a multimillion-dollar wholesale partnership with Walmart, and that other wholesale opportunities were progressing more slowly than expected.

Build-A-Bear cut its fiscal 2026 revenue guidance to a range of $500–525 million, down from a prior range of $530–550 million, and lowered its expected pre-tax income to $60–68 million. The outlook cut followed an earlier guidance reduction issued earlier in fiscal 2026 citing softer store traffic.

What happened on August 27–28, 2026

On this news, Build-A-Bear shares fell 27.3%, closing at $28.44 on August 27, 2026 — the largest one-day percentage decline in the Company's history, and its lowest share price in roughly two years. Following the decline, shares were down approximately 54% for 2026. The disclosures came during a leadership transition: longtime CEO Sharon Price John retired earlier in 2026, with Chris Hurt succeeding her in June, and the Company separately terminated its Chief Growth Officer, effective August 26, 2026.

Who this may affect

Shareholders who purchased or otherwise acquired Build-A-Bear Workshop, Inc. (NYSE: BBW) securities and held them through this disclosure may have been affected. If you have questions about your Build-A-Bear holdings, you are welcome to submit your information below for a free, no-obligation review.