BBW earnings analysis
What we found in BBW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Build-A-Bear Workshop reported Q1 2026 with revenues of $125.3 million, slightly below estimates of $129.7 million, but delivered a robust EPS of $1.03, exceeding expectations of $0.75. The company experienced a decrease in net retail sales, alongside a boost in commercial revenue due to new wholesale customers, while retail margin benefited from a significant tariff refund.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS Exceeds Expectations
- Actual EPS stood at $1.03, surpassing the estimated $0.75 by 37.33%.
- Tariff Refund Boosts Margins
- Retail gross margin increased to 64.4%, up 750 basis points year-over-year, driven by a $7 million tariff refund.
- Commercial Revenue Growth
- Commercial revenue rose 44% to $10.9 million from $7.6 million year-over-year.
- Strong Free Cash Flow
- Free cash flow increased significantly to $25 million in Q1 2026 compared to only $11 million in Q3 2025.
- Localization of Expansion
- 7 new experience locations opened, indicating a continued focus on international and non-traditional formats.
- Increased Capital Expenditures
- $6.9 million spent on capital projects in Q1 2026, up from $2.9 million year-over-year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Retail Sales
- Net retail sales decreased by 5.1%, down to $113.5 million from $119.6 million year-over-year.
- Higher SG&A Costs
- Selling, general and administrative expenses rose to 44.8% of total revenue, up from 41.7% in the prior year.
- Inventory Levels Concerns
- Total inventory increased by 8% to $77.8 million, raising concerns about excess inventory affecting cash flow.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.03
- Gross margin
- 64.4%
- Operating margin
- 15.1%
- Segment
- Direct to Consumer
- Segment
- Commercial
- Segment
- International Franchising
What they said about what is next.
Fiscal 2026 revenue guidance set to $530M-$550M; pre-tax income adjusted to $72M-$78M.
The filing reads about the same as the one before it.
What came before.
- 10-K · April 16, 2026
- Build-A-Bear positions itself as a multi-generational "retailtainment" brand with an omnichannel model and a four-pillar growth strategy emphasizing organic growth, location expansion, wholesale/licensing, and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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