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Tariffs and years of teetering mall traffic have roiled much of the toy industry. But Build-A-Bear investors are continuing to reap sizeable gains. Shares of Build-A-Bear Workshop are up more than 60% since the start of 2025, trading at just under $72 apiece as of Tuesday afternoon. That compares to just 13% for the S&P 500 since the start of the year, and marks dramatic growth from five years ago, when the St. Louis-based retailer’s stock sat under $3. The toy industry overall has been reasonably soft in recent years, notes Neil Saunders, managing director of GlobalData but certain categories, including craft-oriented products, have done very well following the height of the COVID-19 pandemic. And that’s key to Build-A-Bear’s core business model: welcoming consumers into their brick-and-mortar stores to make their own plush animals. That may also set Build-A-Bear apart from the malls its stores are often inside, many of which have struggled to see overall traffic rebound over the years. The mall may not be a destination, but Build-A-Bear often is because its often a planned trip,” Saunders said. Its a store within a mall that many consumers make a beeline for. Build-A-Bear is still not isnt entirely immune to macroeconomic pressures, but the company’s profit has soared to record after record in recent quarters. Last month, the retailer reported what it said were the best results for a second quarter and first half of a fiscal year in the history of the Build-A-Bear, which opened its first store in 1997. Company executives pointed to strong store performance and other expansion efforts. In the first half of its 2025 fiscal year, the companys revenues hit $252.6 million and its pre-tax income climbed to $34.9 million up 11.5% and 31.5%, respectively, year-over-year. The company also raised its financial outlook for the full year, despite anticipated costs of President Donald Trump’s steep tariffs on goods coming into the U.S. from around the world and other headwinds. Tariffs are a real cost that we are facing, Voin Todorovic, chief financial officer at Build-A-Bear, said in the company’s Aug. 28 earnings call pointing to current U.S. import tax rates of 30% on China and 20% on Vietnam, where the retailer sources much of its products. Some of that has already trickled down to the cost of Build-A-Bear’s merchandise in North America, but Todorovic noted that such levies would impact the company “even more in the second half of the year. Still, he and other executives pointed to preparations Build-A-Bear had made to lessen the blow, including previous inventory increases. The company also maintained that consumer-facing price impacts would be limited. While the retailer offers some ready-made toys and toy clothing, “what Build-A-Bear generally buys is materials, Saunders noted. This can hedge against tariffs much more effectively,” he explained, as they reduce labor costs and potentially allow for more flexibility on sourcing. Still, Saunders notes that everyone is going to be affected by tariffs and Build-A-Bear isn’t an exception. He adds that consumers will probably eat that extra cost because they’re paying for the entertainment value.” Barring any significant changes, Todorovic said in August’s earnings call that tariffs are anticipated to cost Build-A-Bear under $11 million for the 2025 fiscal year. But despite that and other costs, he noted that the company is still on track to approach or slightly beat last year’s earnings. The company’s latest guidance expects its pre-tax income to reach between $62 million to $70 million for the full 2025 fiscal year, compared to just over $67 million reported in 2024. Wyatte Grantham-Philips, AP business writer
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E-Commerce
Brand partnerships used to mean a co-branded sneaker drop or a limited-edition snack flavor. Now, theyre getting strangerand more viral. Soda-and-cookie mash-ups, beer-infused soups, and hot honey beans have all hit store shelves in recent months, sparking a mix of curiosity, confusion, and clicks. At first glance, these collaborations might feel like stunts with little connection between the products. But marketing experts and brand leaders argue they serve a bigger purpose: keeping legacy names relevant in a crowded, attention-driven marketplace. While no one asked for these collaborations, the weirder they are, the faster they go viral. This year, unexpected pairings are filling up social media and grocery store aisles. But as more and more brands play matchmaker, it’s clear that this is more than about a product that doesn’t make sense. “It’s less about getting audiences to try the collaboration, and more about reminding them to reach for the original thing,” says Grace Murray Vazquez, executive vice president of strategy at the influencer marketing company Fohr. “It’s ultimately not just bizarre; it is like a calculated unexpectedness.” More than a product When Coca-Cola paired with Oreos or Pabst Blue Ribbon worked with Campbells Chunky on beer-infused soups, the goal wasnt just novelty. Executives say quality still matters, even in the quirkiest launches. First and foremost, we wanted to make sure its going to taste good, since it has our logo on it, says Rachel Keeton, senior brand director at PBR. While more and more brands seem to be tapping into the bizarre, for legacy brands, it’s still important to preserve quality in tasteno matter how strange the taste may be. “It is not about the product per se, but companies still have to adhere to quality, Keeton adds. Shared heritage also plays a role. Both Campbells and PBR, for example, have long histories as American pantry staples. That alignment gives even unexpected products a sense of cohesion. Theres just a really natural connection between the two brands, Keeton adds. Still, despite similarities, brands aim to surprise the audience by finding a somewhat unexpected or bizarre factor, whether it be the product itself or the collaboration. Oreos and Coca-Colas audiences have a lot in common, but ultimately they’re big enough brands that the combination of them is the thing that is the unexpected, Vazquez says. Additionally, beyond product sales, the consumers reactionswhich often take over social media or make headlinesprove to be an invaluable strategy. It’s almost like low-stakes rage bait that incites this response from audiences. Like, Why would you ruin a good thing? Vazquez adds. But for it to be truly successful, it needs to have legs beyond the moment of just fast noise. Fighting for relevance For newer entrants, a viral collab can drive discovery. For legacy brands, its about clawing back cultural cachet from buzzy competitors. Even giants like Coca-Cola and Oreo risk fading into the background as startups such as Poppi capture younger consumers attention. Thats why shock becomes a feature, not a bug. A wild collaboration can stop the scroll and spark conversation. @snackolator I did not think the OREO cookies could nail the Coca-Cola taste, but they did… this is a great collab and I think the Coke Zero dessert line could be a thing. Huge thanks to @OREO for sharing an early sample – the cookies are just so much fun! #oreo #oreos #cocacola #coke #cokezero #mukbang #foodreview #foodtok #cookies #cookiereview original sound – snackolator “In this inner landscape where things are as noisy as they currently are, unexpected has overtaken authenticity as the thing that brands are asking for and going for,” Vazquez says. For new brands, a viral hit might mean reaching the eyes of new consumers, yet legacy brands are also tapping into the strategy, primarily to gain back cultural relevance. They’ve lost some of that ability to be top of mind for people, Vazquez says. Shock immediately throws the audience off guard. So it is again an attempt to fix an attention deficit, she adds. For it to actually be effective for brands, it needs to incite that reaction in the short term, and then it needs to be sustained long term by true advocacy and not just attention. And while effective, the strategy, like most things, has an expiration date, and audiences are catching up to the shock factorlike with ads made to incite a strong reaction, such as Skimss facial shapewear and Sydney Sweeneys American Eagle jeans campaign. We should expect to see them for at least another six months, but consumers will start to fatigue, Vazquez says. “Consumers are smarter than ever. And once they start to register the pattern and the conversation turns to a place where people are saying, ‘hang on a minute’maybe the whole point of this is to just get us talking. Then it becomes expected, and it doesnt hit anymore.”
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E-Commerce
The deadline to submit a claim in Poppi soda’s $8.9 million class-action lawsuit is quickly approaching. Qualifying customers have until this Friday, September 26 to file a claim in the class-action lawsuit against Poppi’s former owner, VNGR Beverage, LLC, that alleges the low-sugar, prebiotic soda was “improperly marketed” and labeled as gut healthy,” a claim that is not scientifically backed, leading customers to purchase products they would not have otherwise. The company argued its labeling is truthful and accurate, and denied any liability or wrongdoing, according to the lawsuit website and court records obtained by USA Today. It’s worth noting PepsiCo, Inc. (NASDAQ: PEP) acquired Poppi in a deal valued at $1.95 billion back in May of this year. What is Poppi? Poppi is a low-calorie sparkling beverage, or “soda,” that combines apple cider vinegar, 5 grams or less of sugar, and prebiotics, which makers define as “a special type of fiber that can act as food for healthy bacteria in your gut . . . from agave inulin and cassava root fiber.” Cans contain 35 calories or less, and come in traditional soda flavors such as root beer, cream soda, and classic cola, as well as new flavors like cherry limeade, raspberry rose, and ginger lime. Who is eligible for the Poppi settlement? Customers who purchased any one of the beverages, including all flavors and package sizes, between January 23, 2020 and July 18, 2025 are eligible for a payment in the class-action settlement. How can I file a claim in the Poppi lawsuit? Eligible customers can submit a claim up until this Friday, September 26, 2025. The only way to receive a payment for eligible purchases is under the settlement. If a customer wants to opt out of the settlement, they must submit a completed form by postal mail to the settlement administrator by the deadline. How much are the settlement payments? According to the claims website, without a valid proof of purchase (i.e. a receipt), a household will be reimbursed up to a total of $16. (A household means any number of persons occupying the same dwelling unit.) With a proof of purchase, the breakdown is as follows: Up to $0.75 per single can purchased $3 per 4-pack purchased $6 per 8-pack purchased $9 per 12- or 15-pack purchased When will customers receive payment? While filing a claim does not automatically guarantee payment, a final approval hearing will be held on November 20, 2025. If the court approves the settlement and there are no appeals, then payments on approved claims will be distributed within 90 days after the settlement is no longer subject to appeal or review, unless the court orders otherwise.
Category:
E-Commerce
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