Build-A-Bear Workshop is an experiential specialty retailer where customers build their own stuffed animals in-store — choosing a plush shell, stuffing it, adding accessories, and personalizing it. The experience targets families with young children, though Build-A-Bear argues that roughly 40% of sales now come from teens, adults, collectors, and gift buyers. The company operates through three segments: Direct-to-Consumer (DTC), Commercial, and International Franchising. DTC — the largest segment — covers 375 corporately managed stores in the U.S., Canada, UK, and Ireland, plus e-commerce. The Commercial segment sells wholesale product to partner-operated locations (178 sites at venues like Great Wolf Lodge and Carnival Cruise Line) and to traditional retailers like Walmart. International Franchising generates royalties from 109 franchise locations across 36 countries. Build-A-Bear makes money primarily through in-store sales of plush animals, clothing, and accessories, with demand skewed toward birthdays and celebrations. The asset-light partner-operated model — where Build-A-Bear supplies product while the partner funds store operations — is a key growth driver, with location count more than doubling since 2023. Build-A-Bear is also expanding its wholesale presence through Mini Beans, a pre-stuffed collectible plush line that has sold over 3M units since launching in early 2024 and now sits on Walmart shelves. Tariffs on Chinese-sourced goods are a notable cost headwind, and Build-A-Bear has been shifting sourcing toward Vietnam to manage exposure.