We are reiterating our Buy rating and $58 price target for Build-A-Bear Workshop and slightly lowering our EPS projections to account for the current tariff-driven environment, as the company announced material 1Q top and bottom line upside, driven by strong offerings, seasonal shifts and further gains in the higher margin franchising and third party segments. Further, management continues to return capital to shareholders via share repurchases and quarterly dividends, while still maintaining a cash rich ($3.37 per share), debt free balance sheet. That said, given the current uncertain economic environment, management, despite the 1Q upside, remained conservative in their guidance, reiterating FY25 revenue growth of mid single digits and reducing the pre-tax projection to $61 to $67 million. We believe the company remains ideally positioned to thrive; as such, we reiterate our Buy rating and $58 price target for BBW.
