Build-A-Bear Workshop, Inc. (NYSE:BBW) posted third-quarter results on Thursday that beat profit forecasts even as tariff-related expenses weighed on margins. The upbeat report sent shares soaring 8.01% in pre-market trading.

The company reported earnings per share of $0.62, ahead of analyst expectations of $0.59 but down from $0.73 a year earlier. Revenue came in at a third-quarter record of $122.7 million, a 2.7% increase from the prior year, though slightly below the consensus estimate of $123.96 million. Tariffs and related costs reduced pre-tax income by roughly $4 million for the period.

“We are pleased to report record third-quarter and first-nine-months revenue, driven by continued strong store performance in our Direct-to-Consumer segment, and double-digit revenue growth for our Commercial segment,” said Sharon Price John, President and Chief Executive Officer of Build-A-Bear Workshop.

The retailer reaffirmed its full-year outlook, projecting mid-to-high single-digit revenue growth and pre-tax income of $62 million to $70 million, inclusive of approximately $11 million in tariff costs.

Build-A-Bear also continued expanding its footprint, opening 24 new global experience locations during the quarter for a total of 651 worldwide. The company returned $10.1 million to shareholders via buybacks and paid $2.9 million in quarterly dividends.

For the first nine months of fiscal 2025, the retailer delivered record revenue of $375.3 million, up 8.5% year-over-year, while diluted EPS climbed 24.1% to $2.73.

“The Company’s most profitable first nine months in our history underscore the durability of our evolved and diversified business model as well as the ability to execute our strategic plan,” added Voin Todorovic, Chief Financial Officer.

Build-A-Bear Workshop stock price

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