Build-A-Bear's Nostalgia-Driven Leap: Adult Fans, Record Revenue and a Rising Stock

Build-A-Bear Workshop posted record revenue for the first half of its fiscal year 2025, reporting $252.6 million, up about 12% from a year earlier, and boosted its outlook following a strong second-quarter performance. The retailer said it was able to blunt tariff pressure by building inventory early in the year and signaled that prices may rise as input costs increase.

The results help the St. Louis-based chain stand out as many retailers grapple with tariff-related losses; Build-A-Bear’s stock has surged roughly 60% this year and is approaching a $1 billion market capitalization. CEO Sharon Price John told CNBC that the company’s success stems from deliberate planning across multiple scenarios and a flexible approach to pricing and supply.

The company has broadened its appeal by targeting adults who remember Build-A-Bear from childhood, expanding offerings and leaning into brand nostalgia. “Retail experience and personalization have been buzzwords for a long time. However, Build-A-Bear has lived these values for as long as it has been around,” said Neil Saunders, a retail expert at GlobalData, in a feature carried by the Daily Mail. The chain emphasizes experiences that resonate with both children and their parents.

A Build-A-Bear survey found that 92% of adults still own their childhood teddy bears, and all respondents said stuffed animals are for all ages. The brand’s nostalgia-driven pull has drawn adults back to its stores, including social-media-driven trips and birthday celebrations. TikTok posts highlighting adult visits have helped amplify the trend, with videos showing adults embracing the brand’s memories and some marketing material explicitly inviting adults to celebrate birthdays in-store. The company has also experimented with experiences such as an after-dark collection marketed to adults who want a humorous or more mature take on the brand.

The retailer has continued expanding into smaller formats and new experiences, including a line of “Mini Beans”—smaller, pre-stuffed bears—and international expansion efforts. Saunders noted that smaller trends like collectibles and nostalgia help explain Build-A-Bear’s resilience as mall traffic declines.

Sharon Price John has been at the helm since 2013 and has emphasized that the company planned ahead to weather tariffs, noting that it imports a vast majority of its products from China. “Success isn’t an accident, and it often takes years of planning to be able to weather difficult situations,” John told CNBC. She added that while tariff-related costs remain a factor, the company expects pricing adjustments as the supply chain stabilizes.

The Build-A-Bear surge comes amid broader retail turbulence. Other brands have faced headwinds, with accessories retailer Claire’s filing for bankruptcy in August and Forever 21 seeking relief twice in five years. Toys “R” Us, once a staple of the toy aisle, closed most U.S. stores after a 2017 bankruptcy filing, though Build-A-Bear has continued to grow through flagship locations, seasonal pop-ups and store-within-store formats at Macy’s.

Founded in 1991 by Maxine Clark in St. Louis, Build-A-Bear opened its first international franchise in England in 2003 and went public in 2004. Price John has led the company since 2013, steering a strategy built on an experiential, personalized shopping journey that remains central to its brand. The company’s emphasis on planning and adaptability has become a focal point for investors watching how retailers navigate tariffs and shifting consumer demand.

The company’s recent performance underscores a broader tension in the market: while inflationary pressure and tariff costs weigh on many retailers, Build-A-Bear has leveraged nostalgia and adult-targeted experiences to sustain growth, even as it remains exposed to the same macroeconomic forces affecting the broader sector.