Build-A-Bear stock falls 15% as it reveals the real hit from tariffs, at last | Fortune

"The mall staple was able to get ahead of tariff impacts during the first half of the year through preemptive actions, Chief Financial Officer Voin Todorovic said in a statement Thursday, but the levies caught up to the company in its most recent quarter and will continue to weigh on its performance into 2026. "We expect this elevated level of impact to continue through the fourth quarter and into the next fiscal year," Todorovic said."

"Trump acknowledged in April that his tariffs could result in fewer and costlier products in the United States, saying at the time that American kids might "have two dolls instead of 30 dolls." Many U.S. companies have been able to avoid price hikes through various maneuvers like aggressively buying supplies before tariffs kicked in. Many have absorbed some of the costs and pulled back on hiring instead of raising prices. Both importers and economists, however, said that those tactics have an expiration date."

"For the period ended Nov. 1, Build-A-Bear earned $8.1 million, or 62 cents per share. A year earlier the St. Louis company earned $9.9 million, or 73 cents per share. The performance topped the 59 cents per share that analysts polled by FactSet were looking for. Revenue rose nearly 3% to $122.7 million, but came in below the $124 million that Wall Street expected."

Build-A-Bear posted a strong quarter but tariff levies have begun to erode results and are expected to continue into 2026. The company used preemptive actions to blunt early tariff impacts, but the levies caught up in the most recent quarter. Management states guidance already factors in tariff impacts and disciplined expense management. Shares declined 15% on the news. Earnings were $8.1 million, or $0.62 per share, down from $9.9 million, or $0.73 a year earlier, and revenue rose nearly 3% to $122.7 million, below expectations. Fiscal 2025 revenue is still forecast to grow mid-to-high-single-digits, helped by growing social-media popularity among "kidults."

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