How Build-A-Bear Thrives Amidst Tariffs and Declining Mall Traffic: Discover Their Secrets to Success!

NEW YORK (AP) — The toy industry has faced challenges recently, but Build-A-Bear Workshop is thriving. The company’s shares have soared over 60% since the beginning of 2025, currently near $72 each. This is impressive compared to the S&P 500’s growth of just 13%. Just five years ago, Build-A-Bear stocks were hovering below $3.

Neil Saunders, a managing director at GlobalData, notes that while the overall toy market has been “reasonably soft,” some segments, like craft-focused products, are booming. This is crucial for Build-A-Bear’s unique model of allowing customers to create their own plush toys in stores. Unlike many shops in malls that struggle for foot traffic, Build-A-Bear attracts consumers who specifically plan visits.

“The mall may not be a destination, but people often make a beeline for Build-A-Bear,” says Saunders. This customer loyalty has helped the brand stand out, even as mall traffic declines.

Despite some economic pressures, Build-A-Bear is reporting record profits. In the first half of its 2025 fiscal year, revenues hit $252.6 million, with pre-tax income rising 31.5% to $34.9 million. The company attributes its success to strong store performance and strategic expansion.

During the recent earnings call, Chief Financial Officer Voin Todorovic acknowledged that tariffs are a challenge. High import tax rates, such as 30% on goods from China, affect costs. However, he mentioned that the impact is manageable due to previous inventory preparations. Build-A-Bear typically sources materials, which means they can adapt better to tariff pressures compared to companies that rely solely on finished goods.

According to Todorovic, the company expects tariffs to cost them under $11 million for the 2025 fiscal year, but they are still aiming to meet last year’s earnings. Their guidance projects a pre-tax income between $62 million and $70 million, slightly above the $67 million reported the previous year.

User reactions online reflect excitement for Build-A-Bear’s innovative approach. Many parents share positive experiences, emphasizing the joy and creativity involved in making custom stuffed animals.

As Build-A-Bear continues its journey, it stands as a bright spot in the toy industry amid challenges. With a focus on consumer experience and flexibility in operations, the future looks promising for this beloved brand.



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Neil Saunders, Build-A-Bear Workshop, toy industry