Build-A-Bear Fires Growth Officer After Revenue Drops 7.2%

Build-A-Bear reported a decline in second-quarter financial performance, with total revenues falling 7.2% year-over-year to $115.3 million and pre-tax income dropping 24% to $11.6 million. In the wake of these results, the company terminated Chief Growth Officer David Henderson on Wednesday.

CEO Chris Hurt attributed the weaker performance to a summer trend collection that failed to resonate with consumers. Hurt noted that the product line lacked sufficient customization options and was not as dressable as previous offerings. The company also experienced setbacks in its wholesale channel, specifically failing to repeat a multimillion-dollar program with Walmart.

As a result of the downturn, Build-A-Bear lowered its full-year revenue guidance to between $500 million and $525 million, down from the previous estimate of $530 million to $550 million. Despite the financial losses, the retailer continued to expand its physical presence, adding five global experience locations and six franchise locations to reach a total of 674 global sites.