Update shared on 06 Dec 2025
Fair value Decreased 10%Analysts have modestly lowered their price target on Build-A-Bear Workshop to approximately 72 dollars from about 80 dollars, reflecting slightly higher discount rate and margin assumptions that more than offset incremental optimism on revenue growth and future valuation multiples.
What's in the News
- Planned national expansion of the Build-A-Bear x Hello Kitty and Friends Workshops, with new flagship locations opening at American Dream in New Jersey and Mall of America in Minnesota in early 2026 (Key Developments)
- Concept builds on the success of the first Los Angeles Build-A-Bear x Hello Kitty and Friends Workshop, which quickly became a destination for collectors, families, and Sanrio fans (Key Developments)
- New experiential stores will feature immersive Hello Kitty themed environments, including branded shopping bags, aprons, Cub Condos, and customizable outfits, scents, and sounds for multiple Sanrio characters (Key Developments)
- Company completed repurchases of 640,295 shares, about 4.91% of shares outstanding, for 23.1 million dollars under its existing buyback program as of early December 2025 (Key Developments)
- Management reaffirmed fiscal 2025 guidance, and is still expecting total revenue to grow at a mid to high single digit percentage rate (Key Developments)
Valuation Changes
- Fair Value Estimate has been reduced modestly, from approximately 80 dollars to about 72 dollars.
- Discount Rate has risen slightly, from roughly 8.41 percent to about 8.80 percent, reflecting a marginally higher perceived risk profile.
- Revenue Growth has increased slightly, from an assumed 4.07 percent to about 4.44 percent, indicating modestly stronger top line expectations.
- Net Profit Margin has declined meaningfully, from around 10.62 percent to approximately 9.17 percent, putting more pressure on earnings leverage.
- Future P/E Multiple has edged up slightly, from about 19.6 times to roughly 20.2 times, implying a small uplift in expected valuation on forward earnings.
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