Build-A-Bear Workshop lowers annual outlook as Q2 revenue and profits fall

Build-A-Bear Workshop reported a decline in second-quarter financial results, characterized by a 7.2% year-over-year drop in total revenue to $115.3 million. Pre-tax income also fell 24.1% to $11.6 million. The company attributed the downturn to lower store traffic and a summer trend merchandise collection that failed to resonate with consumers.

In response to the performance, the retailer has lowered its full-year outlook. Total revenue guidance was reduced to a range of $500 million to $525 million, down from the previous estimate of $530 million to $550 million. Pre-tax income guidance was also adjusted downward to between $60 million and $68 million.

Alongside the financial results, Build-A-Bear announced the termination of Chief Growth Officer David Henderson. CEO Chris Hurt noted that while the company anticipated a difficult first half of the fiscal year, the second-quarter results were lower than projected due to macroeconomic pressures and underperforming product lines.