Build-A-Bear fires chief growth officer as earnings, sales fall; opening 50 stores
Build-A-Bear Workshop reported disappointing results for its second quarter amid declines in online and store traffic and weak performance from summer trend products.
In the SEC filing of its second-quarter results, the experiential retailer revealed that it had terminated David Henderson — “without cause” — effective Aug. 26. Henderson, who previously served as Build-a-Bear’s finance officer, was named to the role in June.
Build-A-Bear's total revenues decreased 7.2% to $115.3 million in the quarter ended Aug. 1. Net retail sales fell 7.1% to $106.5 million. Consolidated e-commerce demand (online orders fulfilled from either the company’s warehouses or its stores) decreased 15.6%
Earnings per share were $0.70, down from $0.94 in the year-ago period.
"While we expected fiscal 2026 to be back-half weighted, second-quarter results fell short of our expectations, and certain wholesale opportunities may take longer to realize than previously anticipated,” said Chris Hurt, who took the reins as CEO in June. “That said, we continue to execute against our long-term strategic growth initiatives, including the planned acceleration in experience location openings during the remainder of the year. “
The company continues to expect net new unit growth of at least 50 locations through a combination of corporately-managed, partner-operated, and franchise business models.
On the earnings call, Hurt said that the company is looking forward to the opening of its “highly immersive, multi-level, largest retail-tainment destination” at Icon Park in Orlando. Opening in the third quarter, it will include the brand’s first-ever design studio, described as a high-touch, appointment-based experience where customers can work one-on-one with a design consultant to create a truly one-of-a-kind furry friend. It will also include a bake shop, and a scent bar, where guests can personalize a scent to be added to their stuffed creation.
“We intend to apply relevant successes and learnings from our Icon Park location to evolve other offerings within our store portfolio,” Hurt said on the company's earnings call.
The company lowered its full-year outlook. It now expects total revenues of $500 million to $525 million, down from its previous guidance of $530 million to $550 million.
At the end of the quarter, Build-A-Bear had 674 global locations, comprised of 379 corporately-managed locations, 177 partner-operated locations and 118 franchise locations.
