Build-A-Bear Workshop, Inc. (NYSE:BBW) reported mixed first-quarter fiscal 2026 results, with earnings beating expectations, but revenue missing estimates as softer store traffic and weaker e-commerce demand pressured sales.

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Revenue Misses, Earnings Beat

Revenue fell 2.4% year over year to $125.3 million, below the analyst estimate of $129.6 million.

Adjusted EPS came in at $1.03, ahead of the 75-cent estimate, while GAAP diluted EPS rose to $1.45 from $1.17 a year earlier.

The company lowered its fiscal 2026 revenue outlook to $530 million to $550 million, below the $554.1 million estimate, citing weaker direct-to-consumer trends and a more uncertain consumer environment.

However, Build-A-Bear raised its pre-tax income forecast to $72 million to $78 million, helped by an approximately $13 million tariff refund.

Pre-tax income rose to $23.9 million from $19.6 million, with margin expanding to 19% from 15.3%. Adjusted pre-tax income was $16.9 million, excluding a $7 million tariff refund, while adjusted EBITDA was $20.8 million.

Store Traffic and E-Commerce Pressure Sales

Net ...