While many retailers continue to struggle in today’s uncertain economy, one surprising company is proving resilient.
Build-A-Bear Workshop, the beloved store where shoppers can design their own stuffed animals, has reported record revenue and impressive growth over the past year.
Record Revenue and Rising Stock Prices
In its second-quarter earnings report released at the end of August, Build-A-Bear raised its financial outlook, citing proactive planning to manage tariffs and rising costs.
By boosting inventory early in the year, the company was able to anticipate price increases without losing momentum.
The results speak for themselves: Build-A-Bear’s stock has surged nearly 60 percent this year, edging toward a $1 billion market cap.
Meanwhile, other retailers continue to grapple with tariff-related losses and slow consumer spending.
For the first half of fiscal 2025, the company reported $252.6 million in revenue—an almost 12 percent increase from the same period last year.
CEO Attributes Success to Careful Planning
CEO Sharon Price John told CNBC that Build-A-Bear’s ability to plan for multiple scenarios has been crucial to its success.
By anticipating challenges and thinking ahead, the company has been able to thrive when others are struggling.
Attracting Adults and Leveraging Nostalgia
Part of Build-A-Bear’s growth comes from appealing to adults who grew up with the brand. The store has expanded offerings aimed at older customers and tapped into the powerful pull of nostalgia.
“Retail experience and personalization have been buzzwords for years, but Build-A-Bear has actually lived these values since its founding,” said retail analyst Neil Saunders.
“Now that these trends are mainstream, the company continues to attract shoppers and drive sales.
Nostalgia and collectible trends also play a big role.”
Targeting young adults makes strategic sense, Saunders added.
Many adults who grew up with Build-A-Bear now have higher spending power and are the parents of the next generation, helping to reinforce the brand’s longevity.
Adults Returning to the Toy Shop
Surveys show that 92 percent of adults still own their childhood teddy bears, and 100 percent of respondents believe stuffed animals are for all ages.
Adults are increasingly returning to Build-A-Bear to relive fond childhood memories.
Social media has reflected this trend. TikToker Mereyah Cage documented a birthday trip to Build-A-Bear, declaring, “you’re never too old to play and pretend.”
Actor Jessica Howell also recommended celebrating her 29th birthday at the store, highlighting its appeal across generations.
New Collections and Birthday Experiences for Adults
Build-A-Bear has leaned into the adult market with offerings like the “after dark” teddy bear collection, featuring humorous and unique designs specifically for grown-ups.
The brand encourages adults to celebrate birthdays in-store, creating an inclusive, fun experience for all ages.
Marketing experts emphasize the importance of nostalgia in driving sales.
University of Pennsylvania professor Americus Reed told CNBC, “Nostalgia is a huge factor—it can transform a simple retail visit into an emotional, memorable experience.”
Adapting Amid the Retail Apocalypse
Build-A-Bear’s success is even more remarkable given the challenges facing U.S. retail.
Many malls report declining foot traffic, and several brands, such as Claire’s and Forever 21, have filed for bankruptcy.
Even larger toy stores like Toys “R” Us have struggled, closing most of their U.S. locations after 2017.
In contrast, Build-A-Bear has expanded internationally, launched smaller “Mini Beans” toys, and opened seasonal pop-ups and in-store locations within Macy’s, keeping its unique experience accessible to a wider audience.
Planning Ahead Makes All the Difference
CEO Sharon Price John emphasized that Build-A-Bear’s careful planning has been essential to weather economic challenges, including tariffs on imported goods from China.
“Success isn’t an accident—it often takes years of preparation to navigate difficult situations,” she said.
The combination of strategic planning, a focus on nostalgia, and a personalized retail experience has allowed Build-A-Bear to not only survive but thrive, standing out in a retail landscape where many others continue to falter.