Build-A-Bear Workshop Stock Surges Over 2,000 Percent, Outpacing Tech Giants

Build-A-Bear Workshop, the St. Louis-based stuffed-animal retailer, has seen its stock price surge by more than 2,000 percent over the past five years, a performance that has reportedly eclipsed that of major tech companies like Nvidia, Palantir, Microsoft, and Oracle. The surprising market success was highlighted in a recent tweet by Econlib, stating, "This toy company's stock is outpacing Nvidia." This remarkable growth places Build-A-Bear among the top 20 market gainers during the period, with shares doubling last year and rising 66 percent year-to-date.

Analysts attribute Build-A-Bear's resilience to strong fundamentals rather than a meme stock phenomenon. Steve Silver, an analyst with Argus Research, noted that "It’s the market catching up to the company’s strong fundamentals that have been in place for a couple of years." The company has successfully navigated challenges such as declining mall traffic and tariffs, boosting its expected pretax income to between $62 million and $70 million for the current year.

Build-A-Bear's unique in-store experience, where customers personalize their "furry friends," remains a core strength. Chief Executive Sharon Price John emphasized, "I’ve not met a person that can’t tell me the first time they went to Build-a-Bear, and what they bought, and why they were there, and who they were with." This strong brand connection has allowed the company to expand globally, with 627 stores and plans for 60 more in fiscal year 2025.

A significant driver of recent growth is the "kidulting" trend, where adults purchase toys for nostalgia or collecting. Approximately 40 percent of Build-A-Bear's business now comes from adult consumers, according to analyst Eric Beder. The company has capitalized on this by expanding its licensing deals with 75 brands, including Disney and Pokémon, and enhancing its e-commerce presence.

Despite facing an estimated $11 million hit from tariffs on Chinese-sourced inventory, Build-A-Bear has proactively adjusted its business model. This includes renegotiating deals, optimizing online order fulfillment, and leveraging its vertical retail model to transition into a "branded intellectual property company," as described by CEO John. This strategic pivot has enabled partnerships with tourist destinations and further diversified its revenue streams.