Here’s why Build-A-Bear Workshop is thriving even as retail struggles

For friends of Cammie Craycroft 26 -year -old, this summer was a perfect birthday event a group trip Bear-a-bear workshop.

Craycroft said that he and his friends have grown on the way to the retailer for his experienced shopping product where he and his friends can choose filled animals and then choose their clothes, accessories and more.

“Build-A-Bear means a lot for me. Build-a-Bear had a lot of birthdays in CNBC. “A really nostalgic place and I have very happy memories there.”

The company has recently diversified its portfolio and leans on the nostalgia of the brand. Despite macroeconomic winds, the company recorded record -breaking revenue in the first half of the 2025 financial year and reached $ 252.6 million with an increase of approximately 12% compared to the previous year.

And in the second quarter Profit report At the end of August, the retailer increased its appearance after the success of tariff reduction strategies – that is, it increased its inventory in the first quarter while working under the assumption that tariffs would increase prices.

The shares of Build-A-Bear’s shares rise about 60% of the year, and even if the other retailers struggle to recover the losses caused by tariffs, they approach a $ 1 billion market value.

Founded in 1997, the company focused on script planning and has taken over the company in 2013, according to CEO Sharon Price John, to adapt to the constantly changing macro environments, while making its brand loyal to its nostalgic roots.

“Retail apocalypse” means that retailers have seen less pedestrian traffic in shopping centers in the last decade, but John said that Build-A-Bear developed as “much more” than a store. The company turned its positions beyond shopping centers into cruising ships, amusement parks, hospitality and more.

“This is a really emotional, unforgettable experience, a tremendous amount of equality,” John told CNBC. He said. “The strong feelings of consumers for brands can be very stretched beyond just one experience.”

With more than 600 stores in 32 countries, the company is expanding new options to expand its signature experience with a series of international stores and to present new options, including creating a “mini bean” line with smaller, predetermined toys.

John attributed the company’s success to its forward -looking strategies. Although Build-A-Bear imported its products from China and Vietnam “a large majority”, John said that the tariff effects were not as harsh as possible because the company had already planned the company.

“Success is not an accident, and it usually requires years of planning to ventilate difficult situations.” He said.

However, the main brand success of the company goes beyond keeping the balance sheet clean.

“The other piece, I think we’re in the right place at the right time.” He said. “There’s a lot of planning, but sometimes you just get the right zeitgeist.

Da Davidson analyst Keegan Cox, even if a macro-partical economic slowdown shows signs of economic slowdown, Build-A-Bear’s growth is a large number of reasons, he said.

One of the factors that help the company is the ability to “secretly” upgrade the prices of certain products without realizing customers, because it creates new products to remain constantly connected to existing trends that are constantly priced.

“No consumer can really say, because there is no direct comparable product,” he said to CNBC. “I think this is a small tariff reduction strategy that has just been built for its models.”

Cox said that the company’s various income flow between new products and new demographies helps to remain standing and successful. Analyst said that he saw “momentum” in the company while accelerating the inventory, especially before the holiday season.

Authorized, the expansion of international stores is a particularly effective tool, he added.

“I think, these stores are just a super high capital income and there is a big track for growth there.

Craycroft and his friends are not the only person who focuses on the brand. After doing Tiktok He said about the adult relationship with the toy company that most of his views in the video came from people looking for “Build-a-bear” in practice.

According to A Last survey 92% of adults carried out by Build-A-Bear still have childhood toy bears and about 100% of the participants are filled with filled animals, not only for children, but for all ages, he said.

According to American Reed, Professor of Marketing at the University of Pennsylvania, nostalgia for old customers and for the next generation, former customers and those who want to continue for the next generation.

“If we learn something from the cracier barrel epic, Reed Reed said, referring to the internet turmoil on the attempt to re -brand the restaurant chain,” Nostalgia is important and I think it’s a big part of it. “

In the “Attention Deficit” economy, with a large number of options for consumers, Reed, Build-A-Bear’s ability to develop the current footprint, digital and social media ability to renew the existence of the ability to renew the existence of consumers, he said.

Reed said that the brand’s identity is closely intertwined with customers because of the “ritualist” experience of a “ritualist” experience filled in Build-A-Bear.

“While dealing with something together and personalizing something, you actually create this extension of yourself, and this is incredibly strong.” He said. “And then you go home with him and you can think of it and look at it. It is really hard to reproduce.”

Reed, Build-A-Bear’s consumers of deeper relations with the consumers and a sense of loyalty that creates a sense of loyalty has become a good example of how to create a good example.

“The pressure of creating something special enough to break the economy of attention deficit will be a print test of who can be successful in the future.” He said. “They will have the most attraction.”