Build-A-Bear Workshop Inc. (NYSE: BBW) has demonstrated an extraordinary stock performance, with its shares surging by nearly 2000% over the past five years, significantly outperforming major market indices. This remarkable run has drawn attention from market observers, with one social media user, litquidity, tweeting, > "Bruh how has Build-A-Bear outperformed every major stock? Absolutely wild run." The company's stock hit a new 52-week high of $70.01 recently, reflecting sustained investor confidence.
Over the last year, Build-A-Bear's stock has grown by over 80%, substantially exceeding the US market's return of 12.4% during the same period. More recently, the stock gained 45.6% since the start of the year, compared to an 8.5% gain for the Zacks Retail-Wholesale sector and an 11.2% return for the Zacks Retail - Miscellaneous industry. This consistent outperformance highlights the company's successful strategic initiatives.
A key driver of this growth has been Build-A-Bear's strategic reinvention of its business model, including expanding its e-commerce presence and targeting new customer segments. The company has seen consolidated e-commerce demand surge by 15%, alongside increased revenue from franchising. This focus on digital channels and broader appeal, including the growing "kidulting" market with age-gated microsites, has broadened its customer reach beyond its traditional demographic.
Build-A-Bear reported strong financial results for its second quarter of 2025, with revenue reaching a record $124 million, an 11% increase year-over-year. GAAP net income also saw a significant boost, rising nearly 41% to almost $12.4 million, or $0.94 per share, comfortably beating analyst estimates. Following these strong results, the company raised its full-year 2025 guidance, anticipating mid-to-high single-digit percentage revenue growth and pre-tax income between $62 million and $70 million.
The company's robust financial health, characterized by a debt-free balance sheet and aggressive share buybacks, further underpins its appeal to investors. Build-A-Bear also plans to add 50 to 60 new "experience locations," expanding its physical footprint to over 600 stores. Analysts currently rate BBW stock as a "Strong Buy," reflecting positive sentiment regarding its continued growth potential and market position.