By Adriano Marchese

Build-A-Bear Workshop's profit rose in its first quarter as positive momentum helped drive revenue growth.

The retailer, which sells teddy bears, stuffed animals and other characters, on Thursday posted net income of $15.3 million, or $1.17 a share for the period ended May 3, compared with $11.5 million, or 82 cents a share, in the same quarter a year ago.

Shares traded nearly 11% higher in premarket trading.

Revenue for the quarter rose 12% to $128.4 million, beating expectations of a more modest rise to $119.1 million.

For the quarter, Build-A-Bear opened 15 net new store locations, made up of one corporately-managed location, ten partner-operated locations, and four franchise locations, bringing its total to 604 stores at the end of the quarter.

Looking ahead, the company said it still expects revenue to grow on a mid-single-digit percentage basis in fiscal 2026, but now expects pretax income in the range of $61 million to $67 million. Previously, pretax income was expected in a range of low-single-digit percentage decline to low-single-digit growth.

Chief Executive Sharon John said the company has seen positive momentum continue into the second quarter, while the company is also working toward managing through a more dynamic environment, while balancing long-term strategic initiatives, particularly related to broadening the company's global retail footprint.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 29, 2025 07:21 ET (11:21 GMT)

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