Build-A-Bear Stock Plummets on Slashed Revenue Forecast, Loss of Walmart Partnership

Build-A-Bear Workshop (NYSE: BBW) shares plunged on Thursday, putting the stock on track for its largest single-day percentage decline on record after the company slashed its revenue forecast, announced the loss of a major partnership, and terminated a key executive.

Guidance Cut on Partnership Woes

Build-A-Bear lowered its fiscal 2026 revenue outlook to a range of $500 million to $525 million, down from its previous guidance of $530 million to $550 million. During an earnings call, the company disclosed it was unable to renew a multimillion-dollar partnership with Walmart and that other wholesale opportunities were progressing more slowly than anticipated.

The retailer's updated outlook also reflects $10 million to $11 million in ongoing costs related to tariffs. In a note following the report, analysts at D.A. Davidson & Co wrote that the new forecast is "below consensus on all line items" and that the company continues to face "incremental tariff cost pressure."

Market Reaction

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The market responded swiftly to the negative developments, with the company's stock falling more than 29% in afternoon trading to its lowest level in approximately two years. Including Thursday's dramatic session, the stock has now fallen about 55% year-to-date.

Broader Challenges and Leadership Changes

This marks the second time this year that Build-A-Bear has reduced its full-year revenue forecast, having previously done so in May, citing softer traffic at its stores. The announcement was compounded by news of corporate instability, with the company terminating the employment of Chief Growth Officer David Henderson, effective Wednesday. This follows the June retirement of longtime CEO Sharon Price John, who was succeeded by former COO Chris Hurt.