Build-A-Bear Workshop (NYSE: BBW) saw its shares plunge 12.4% during intraday trading following the release of its third-quarter fiscal 2025 results, which revealed a revenue shortfall and significant tariff-related costs.
The company reported Q3 revenue of $122.7 million, up 2.7% year-over-year but missing the consensus estimate of $124 million. Pre-tax income fell 18% to $10.7 million, with $4 million attributed to tariffs and related costs. While diluted EPS of $0.62 beat estimates, it declined from $0.73 in the prior-year period. CFO Voin Todorovic warned that tariff impacts would persist into the next fiscal year.
Despite reaffirming its annual guidance for mid-to-high-single-digit revenue growth, the market reacted negatively to the earnings miss and ongoing margin pressures, driving the sharp intraday decline.
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