Build-A-Bear (BBW) Delivers Mixed Q3 Results With Earnings Beating But Revenue Missing

Build-A-Bear Workshop (BBW) reported third-quarter earnings of $0.62 per share, delivering an upside versus the Zacks Consensus Estimate of $0.55 per share—a positive variance of 12.73%. However, year-over-year, the toy retailer saw EPS decline from $0.73 a year prior. On the revenue front, the picture proved less encouraging: the company posted $122.68 million in sales for the quarter ended October 2025, which fell 1.28% short of consensus expectations. This compares to $119.43 million in the prior-year period.

A Track Record of Beat-and-Miss Performance

The earnings beat represents a continuation of BBW’s mixed execution pattern. In the previous quarter, the company exceeded estimates more dramatically—posting $0.94 in EPS against an expected $0.67, marking a 40.3% upside. Over the trailing twelve months, Build-A-Bear has surpassed consensus EPS estimates on four occasions, though revenue performance has been more uneven, topping projections in just three of the last four quarters.

Market Performance Outpacing Broader Indices

Build-A-Bear shares have appreciated approximately 24.7% year-to-date, outpacing the S&P 500’s gain of 16.5%. This outperformance positions the stock ahead of the broader market, though investor focus now turns to whether this momentum can be sustained.

Industry Headwinds and Rank Assessment

The Retail - Miscellaneous sector, to which BBW belongs, currently ranks in the bottom 29% of 250+ Zacks industries. Historical data shows that the top-ranked 50% of industries outperform the bottom tier by more than 2 to 1—a meaningful structural disadvantage. This industry positioning represents a key risk factor for the stock’s forward trajectory.

Earnings Guidance and Forward Outlook

The question of sustainability hinges largely on management’s commentary during the earnings call. Current consensus expectations project $1.37 in EPS on $156.37 million in revenues for the next quarter, with full fiscal-year guidance of $4.03 per share on $533.26 million in total revenues.

Looking ahead, estimate revisions will prove critical. Empirical research demonstrates a strong correlation between near-term stock price movements and the direction of earnings forecast adjustments. The current Zacks Rank assignment of #3 (Hold) reflects a mixed revision backdrop, suggesting the stock is positioned to perform in line with market averages in the near term.

Comparative Sector View

Among retail operators, Cracker Barrel Old Country Store (CBRL), another Retail-Wholesale sector participant, is expected to report Q3 results on December 9. The consensus calls for a quarterly loss of $0.68 per share—a sharp deterioration of -251.1% year-over-year—with revenues projected to decline 5.2% to $801.06 million. This context underscores the sector’s broader challenges, making Build-A-Bear’s ability to maintain profitability noteworthy by comparison.

What Comes Next

The path forward for BBW depends on how analysts revise earnings estimates in the coming weeks. The stock’s intermediate performance will largely reflect whether management can stabilize margins and drive revenue growth despite industry headwinds. For investors tracking the Retail - Miscellaneous space, Build-A-Bear remains a stock worth monitoring, particularly as the earnings forecast picture becomes clearer in the quarters ahead.