Build-A-Bear Workshop, Inc. is a specialty retailer allowing customers to create customized stuffed animals through an interactive experience, catering largely to children and families.

## Company Overview: Build-A-Bear Workshop, Inc.

### Business Description
Build-A-Bear Workshop, Inc. is an experiential specialty retailer that allows customers, particularly children and families, to create their own customized stuffed animals, referred to as "furry friends." Founded in 1997 and headquartered in St. Louis, Missouri, the company primarily operates in the retail segment, featuring a unique, interactive experience where guests participate in the creation process, including stuffing, dressing, accessorizing, and naming their plush toys. 

### Operational Model
- **Stores**: As of February 1, 2025, Build-A-Bear operates 368 corporate-managed stores, primarily located in North America (U.S. and Canada) and 40 stores in the U.K. and Ireland.
- **Distribution**: In addition to physical locations, Build-A-Bear has a significant e-commerce presence, offering products that include plush toys, accessories, and various licensed merchandise.
- **Global Operations**: The company also has partner-operated locations that generate revenue through wholesale arrangements and franchises, operating 83 franchised stores internationally.

### Customer Engagement
- Build-A-Bear has served **more than 250 million customers** since its founding, creating an extensive customer base and fostering strong brand loyalty.
- The company emphasizes a multi-generational appeal, integrating entertainment, sports licensing, collectibles, and gifting offerings to attract a broader audience, including teens and adults.

### Financial Performance
- **Revenue**: For the fiscal year ended February 1, 2025, Build-A-Bear reported total revenues of **$496.4 million**.
- **Net Income**: The company's net income for the same period was **$51.8 million**, a slight decrease compared to $52.8 million in the previous fiscal year.
- **Gross Margin**: The retail gross margin was reported at **55.0%**, an increase from **54.7%** in the prior year, indicating effective cost management and steady demand for their products.

### Employment
- Build-A-Bear employs approximately **1,000 full-time** and **4,100 part-time employees** across its corporate-managed stores, partner-operated locations, and international franchises, primarily in the U.S., Canada, the U.K., and the Republic of Ireland.

### Conclusion
Build-A-Bear Workshop, Inc. has established itself as a beloved brand, combining retail and experiential offerings to create a unique consumer experience. Its strategic focus on e-commerce, global franchise models, and innovative offerings has allowed it to adapt to changing consumer preferences and maintain a strong market presence.

Build-A-Bear Workshop, Inc. is a specialty retailer that creates interactive retail experiences for customizing stuffed animals, catering to families and expanding its product offerings and digital presence.

# Build-A-Bear Workshop, Inc. Overview

## Business Model
Build-A-Bear Workshop, Inc. is a Delaware corporation established in 1997, specializing in creating interactive retail experiences centered around the customization of stuffed animals. Customers, primarily children and their families, can engage in the process of creating their own teddy bears and plush toys, which includes activities like stuffing, fluffing, dressing, accessorizing, and naming their creations.

### Customer Engagement
- **Customer Base:** Over 240 million stuffed animals sold worldwide.
- **Target Demographics:** Families with children, teens, and adults (particularly through licensed products and collectibles).
- **Retail Locations:** 525 global locations, including:
  - 359 corporately-managed locations: 320 in the U.S. and Canada, and 39 in the U.K. and Ireland.
  - 92 partner-operated locations through a wholesale model.
  - 74 international franchise locations.

## Financial Information (as of February 3, 2024)
- **Revenue:** Not specified in the provided text; however, fiscal 2023 reported growth in total revenues and profitability.
- **Net New Unit Growth:** The company opened a net of 37 experience locations in fiscal 2023 and targets 50 new locations for fiscal 2024.
- **Employees:** Approximately 1,000 full-time and 3,550 part-time employees across U.S., Canada, the U.K., and Ireland.

## Segments
The company's operations are organized into three reportable segments:
1. **Direct-to-Consumer (DTC)**: Retail sales through store and e-commerce channels.
2. **Commercial**: Offsetting products and experiences through licensing and strategic partnerships.
3. **International Franchising**: Expanding the company’s presence globally through franchise agreements.

## Operating Strategies
- **Experience Locations**: Build-A-Bear prioritizes the global expansion of its unique experience locations, increasingly focusing on non-traditional retail environments, including tourist destinations.
- **Digital Transformation**: The company is enhancing its digital capabilities, focusing on e-commerce, loyalty programs, and content production to expand its consumer base into older demographics.
- **Merchandise Sourcing and Inventory**: Build-A-Bear offers a broad selection of products, primarily sourced from suppliers in Vietnam and China. The total inventory balance as of February 3, 2024, was $63.5 million.

## Customer Experience & Services
- **Personalization**: Customization is at the core of the Build-A-Bear experience, creating a deep emotional connection with consumers.
- **Digital Platforms**: Innovative online experiences such as the “Bear-Builder” and targeted digital marketing aim to boost e-commerce sales, which have tripled since 2018.

## Challenges
The company faces various risks, including economic fluctuations affecting consumer discretionary spending, competition from other retail and entertainment outlets, challenges in supply chain management, and the need to continually evolve its marketing strategies to maintain relevance in a fast-changing retail landscape.

## Summary
Build-A-Bear Workshop, Inc. is a unique specialty retailer focused on creating personalized stuffed animal experiences for families while expanding its merchandise offerings and digital presence to cater to a broader customer base, including teens and adults. The company operates a significant number of retail locations, employs a large workforce, and has achieved substantial sales in its history.

BUILD-A-BEAR WORKSHOP INC

10-K / April 17, 2025

10-K / April 18, 2024

10-K / April 17, 2025

Company Overview: Build-A-Bear Workshop, Inc.

Business Description

Operational Model

Customer Engagement

Financial Performance

Employment

Conclusion