Tariffs have fueled Build-A-Bear’s resurgence, which is weighing heavily on financial performance

A strong quarter for the retailer at Build-A-Bear Workshop was overshadowed by the increasing weight of tariffs in the ongoing trade war by the President. donald trump,

Mall Staples was able to outpace tariff impacts during the first half of the year through preemptive actions, but the levies caught up with the company in its most recent quarter and will continue to impact its performance in 2026, Chief Financial Officer von Todorovich said in a statement Thursday.

“We expect this elevated level of impact to continue into the fourth quarter and into the next fiscal year,” Todorovic said. “Nonetheless, we are confident in our guidance, which takes into account tariff impacts and our focus on disciplined expense management.”

Shares of Build-A-Bear fell 13% on Thursday.

Trump acknowledged in April that products could become less and more expensive as a result of his tariffs United States of AmericaIt was said at the time that American children “could have two dolls instead of 30.”

Many US companies have been able to avoid price increases through various tactics such as aggressively purchasing supplies before the tariffs are implemented. Many have absorbed some of the costs and pulled out of hiring rather than raise prices.

However, both importers and economists said those tactics have an expiration date.

For the period ended Nov. 1, Build-A-Bear earned $8.1 million, or 62 cents per share. A year earlier the St. Louis company earned $9.9 million, or 73 cents a share.

The performance topped the 59 cents a share that analysts polled by FactSet were looking for.

Revenue rose nearly 3% to $122.7 million, but down from $124 million wall Street expected.

Build-A-Bear still expects fiscal 2025 revenue to grow by a mid-to-high-single-digit percentage basis.

One reason for the retailer’s rebound is growing popularity on social media, especially among those referred to as “kids”, who may have developed Build-A-Bear purchases from them again. Those buyers spend more on products.

Todorovic said it had been the most profitable first nine months in the company’s history. And investors are getting good profits. shares It closed Wednesday at $57.40, a dramatic increase from five years ago, when the retailer’s stock was below $3.