By Adriano Marchese

Build-A-Bear Workshop lowered its full-year revenue forecast after seeing a decline in first-quarter revenue, even as profit rose.

The specialty retailer on Thursday said it now expects revenue of $530 million to $550 million, with pretax income of $72 million to $78 million for fiscal 2026. Analysts expect revenue for the year of $553.9 million.

Previously, the company expected revenue growth to be in the mid-single-digit percentage from the previous year's $529.8 million, with pretax income down by a mid-single-digit percentage, which included $16 million toward tariffs.

While the outlook also includes about $10 million of Section 122 tariffs and related costs, the company said the pretax expectation also includes a $13 million tariff refund, but is partially offset by lower-than-expected operating performance.

For the three months ended May 2, Build-A-Bear had net income of $18.3 million, or $1.45 a share, up from $15.3 million, or $1.17 a share, in the same quarter a year ago.

According to FactSet, analysts were expecting 76 cents a share.

Revenue fell to $125.3 million from $128.4 million, missing analyst forecasts for a rise to $129.4 million.

Chief Executive Sharon Price John said that the quarter was marked by fewer customers coming to its stores, namely due to a more uncertain economic environment.

"While we are taking steps to address this, our focus remains on executing the strategic initiatives designed to leverage the power of the Build-A-Bear brand," Price John said.

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

(END) Dow Jones Newswires

May 28, 2026 07:46 ET (11:46 GMT)

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