US Stock Market: Build-A-Bear shares plunge after retailer cuts revenue outlook, fires growth chief

Shares of Build-A-Bear Workshop plunged 27.3% on Thursday, marking their biggest one-day percentage decline on record after the customized stuffed-animal retailer cut its revenue outlook for the second time this year and terminated its chief growth officer, according to a report by Reuters.

The stock closed at $28.44 after falling to its lowest level in about two years. Including Thursday’s decline, Build-A-Bear shares have lost about 54% so far this year.

According to the report, the company said on an earnings call that it had been unable to renew a multimillion-dollar partnership with Walmart, while other wholesale opportunities were taking longer than expected to develop.


Build-A-Bear lowered its fiscal 2026 revenue forecast to between $500 million and $525 million, compared with its previous guidance of $530 million to $550 million.

Analysts at D.A. Davidson, which maintains a buy rating on the stock, said the revised outlook was below consensus expectations across all major financial metrics. The analysts also pointed to weaker profitability in the second half of the year, partly because of continued pressure from tariffs.

Build-A-Bear said its fiscal-year outlook includes between $10 million and $11 million in ongoing tariffs and related costs.

The company also terminated Chief Growth Officer David Henderson without cause, effective Wednesday, adding to concerns surrounding its growth prospects.

Build-A-Bear had already lowered its full-year revenue forecast in May, citing weaker store traffic. The retailer also announced in March that longtime Chief Executive Officer Sharon Price John would retire in June.

Chris Hurt, who previously served as the company's chief operations and experience officer, succeeded Price John as CEO.