Tariffs catch up to resurgent Build-A-Bear, overshadowing financial performance

A strong quarter at Build-A-Bear Workshop in a bounce back year for the retailer was overshadowed by the growing weight of tariffs in an ongoing trade war waged by President Donald Trump.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.

"Nevertheless, we remain confident in our guidance, which accounts for tariff impacts and our focus on disciplined expense management.” Build-A-Bear shares tumbled 13% Thursday.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.Popular ReadsTrump admin live updates: Trump pardons former entertainment exec indicted by own DOJDec 4, 6:23 AMFamily of fisherman killed in US boat strike files complaint alleging he was murderedDec 3, 5:08 AMTeen on cruise ship possibly died by asphyxiation resulting from bar hold: SourceNov 21, 2:20 PMThe 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...