Build-A-Bear Workshop Stock (BBW) Finds Support Ahead of Earnings: What to Expect

Build-A-Bear Workshop's stock price (NYSE: BBW) has been on the move recently, trading at $58.13 in the pre-market. The stock has gained 1.27% so far in the session, adding to an impressive 8.96% surge during yesterday’s regular trade. This upward movement reflects investor optimism ahead of the company's earnings report, scheduled for release before market open today.

Analysts are projecting an earnings per share (EPS) of $0.59 for the quarter, a 19% decrease compared to the same quarter last year ($0.73). Revenue expectations will also be a key area of focus, with analysts keen to see if Build-A-Bear can maintain its growth trajectory amid evolving consumer spending patterns. The street expects revenue to come in at $124.2 million, for a 4.06% increase year-over-year.

Prior to the recent bounce, BBW had fallen more than 35% from September's high, into the end of November. Support, and buyers stepped in around the $47 level, with the stock adding 21% from there.

Build-A-Bear's recent performance has been bolstered by several positive developments. The company reported record-breaking second quarter fiscal 2025 results, with total revenues climbing to $124.2 million, an 11.1% increase year-over-year. Pre-tax income saw a significant rise of 32.7% to $15.3 million, while diluted EPS jumped by 46.9% to $0.94. This strong performance prompted the company to increase its full-year guidance, projecting mid to high single-digit revenue growth and pre-tax income between $62 million and $70 million.

The company's financial strength has also enabled it to enhance shareholder returns. Build-A-Bear announced a new $100 million share repurchase program and declared a quarterly cash dividend of $0.20 per share, signaling its commitment to returning value to investors.

Operationally, the company is also focused on strategic expansion, with plans to open a multi-level retail experience in Orlando, Florida, during the first half of 2026. This innovative store, located at ICON Park, aims to attract both children and adult collectors, who represent a significant portion of the company's sales.

From a technical analysis perspective, Build-A-Bear's stock has moved back above its 50-day simple moving average (SMA) of $56.51 following yesterday's rally, and significantly above its 200-day SMA of $49.58. This is a potentially bullish move, with traders likely to keep an eye on these levels.

With the stock currently trading with some bullish momentum, the earnings report will serve as a critical test of market confidence and the company's ability to sustain its growth momentum. The implied volatility for BBW is relatively high at 74.50%, suggesting an expected price movement of approximately 14.13%.