Story perspectives

Build-A-Bear Slashes FY2026 Revenue Guidance After Miss

8/27/2026

Summary

Story summary

Build-A-Bear reported Q2 FY2026 earnings per share of $0.70.
Revenue fell 7.2% year-over-year to $115.3 million, missing the $121.1 million estimate.
Shares dropped 25.83% to $29 after the earnings release.
CEO Chris Hurt said the summer collection failed to resonate, prompting a FY2026 revenue guidance cut to $500-$525 million.
The company terminated Chief Growth Officer David Henderson and opened five new experience locations, raising the global total to 674.

History

Historical Context

The 2008 global financial crisis, which peaked in 2008, slashed discretionary spending and triggered a 10% decline in U.S. toy sales. Mattel reported a $1.2 billion revenue drop that year, while Hasbro’s profit fell 15%, prompting widespread store closures across North America. Similarly, Build-A-Bear’s 2026 Q2 earnings missed forecasts, with revenue down 7.2% to $115.3 million and its share price plunging 25.83% after CEO Chris Hurt blamed launch. The pattern forces toy makers to restructure leadership, as Build-A-Bear terminated Chief Growth Officer David Henderson and to expand experiential locations to chase growth.

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Story summary

Build-A-Bear reported Q2 FY2026 earnings per share of $0.70.
Revenue fell 7.2% year-over-year to $115.3 million, missing the $121.1 million estimate.
Shares dropped 25.83% to $29 after the earnings release.
CEO Chris Hurt said the summer collection failed to resonate, prompting a FY2026 revenue guidance cut to $500-$525 million.
The company terminated Chief Growth Officer David Henderson and opened five new experience locations, raising the global total to 674.

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