8-K - BBW - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 12, 2022

Build-A-Bear Workshop, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	001-32320	43-1883836
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)
415 South 18th St., St. Louis, Missouri	63103
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(Address of Principal Executive Offices)	(Zip Code)

(314) 423-8000

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the

    following provisions \(see General Instruction A.2. below\):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BBW	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01.	Regulation FD Disclosure.

Build-A-Bear Workshop, Inc. (the “Company”) prepared an investor presentation containing certain information and financial highlights. Representatives of the Company intend to present some of or all of this presentation to current and prospective investors at various conferences and meetings. A copy of the investor presentation is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. A copy of the investor presentation is also available on the Investor Relations section of the Company’s web site at http://IR.buildabear.com.

To supplement its financial statements presented in accordance with GAAP, the Company used, in its investor presentation, certain non-GAAP measures of financial performance. The Company believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company’s results in the current period to those in prior periods and future periods. Reference to these non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s financial performance.

* * * * *

The information furnished in, contained, or incorporated by reference into Item 7.01 above, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 (the “Securities Act”), as amended, or the Exchange Act, regardless of any general incorporation language in such filing. In addition, this report (including Exhibit 99.1) shall not be deemed an admission as to the materiality of any information contained herein that is required to be disclosed solely as a requirement of Item 7.01.

This Current Report on Form 8-K and the investor presentation attached hereto as Exhibit 99.1, respectively, contain certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements in this report and in such exhibit not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this report and in such exhibit are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things: statements regarding the Company’s goals, intentions, and expectations; business plans and growth strategies; estimates of the Company’s risks and future costs and benefits; forecasted demographic and economic trends relating to the Company’s industry; and other risk factors referred to from time to time in filings made by the Company with the Securities and Exchange Commission. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. The Company disclaims any intent or obligation to update these forward-looking statements.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits
Exhibit Number	Description of Exhibit
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99.1	Investor Presentation—September 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BUILD-A-BEAR WORKSHOP, INC.
Date: September 12, 2022	By:	/s/ Voin Todorovic
	Name:	Voin Todorovic
	Title:	Chief Financial Officer

Exhibit 99.1

Investor Deck 2022

FORWARD LOOKING AND CAUTIONARY STATEMENTS 2 This presentation contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future events and financial performance. We generally identify these statements by words or phrases such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “intend,” “predict,” “future,” “potential” or “continue,” the negative or any derivative of these terms and other comparable terminology. Forward-looking statements are based on current expectation and assumptions that are subject to risks and uncertainties which may cause results to differ materially from the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise. Risks and uncertainties to which our forward-looking statements are subject include: (1) macroeconomic and industry risks such as (a) the COVID-19 pandemic has had and is expected to continue to have an adverse effect on our business and results of operations; (b) continued or further declines in retail consumer traffic could adversely affect our financial performance and profitability; (c) declines in general global economic conditions could lead to disproportionately reduced discretionary consumer spending and demand for our products; (d) consumer interests change rapidly and our success depends on the ongoing effectiveness of our marketing and online initiatives to build consumer affinity for our brand and drive consumer demand for our products and services; (e) our profitability could be adversely impacted by fluctuations in petroleum products prices; and (f) our business may be adversely impacted by a variety of significant competitive threats; (2) operational risks such as: (a) we may be unable to generate demand for our interactive retail experience and products, including timely responses to consumer preferences; (b) failure to execute our omnichannel strategy and the costs of investments in e-commerce and digital technology could adversely affect our profitability; (c) we are subject to risks associated with technology and digital operations; (d) we may be unable to renew, renegotiate our store leases or enter into new store leases on favorable terms; (e) our company-owned distribution center and our third-party distribution center providers may experience disruptions or operate inefficiently; and (f) we may not be able to evolve our store locations to align with market trends, successfully diversify our store models and formats, or otherwise effectively manage our overall portfolio of stores; (3) international risks such as: (a) we may not be able to operate our international corporately-managed locations profitably; (b) we rely on a few global supply chain vendors to supply substantially all of our merchandise, and significant price increases or disruption in their ability to deliver merchandise could harm our ability to source products and supply inventory to our stores; (c) our merchandise is manufactured by foreign manufacturers and the availability and costs of our products, as well as our product pricing, may be negatively affected by risks associated with international manufacturing and trade and foreign currency fluctuations; and (d) we may be unable to effectively manage our international franchises, attract new franchisees or the laws relating to our international franchises change; (4) Legal, technology and intellectual property risks such as: (a) we are subject to a number of risks related to disruptions, failures or security breaches of our information technology infrastructure; (b) we may fail to renew, register or otherwise protect our trademarks or other intellectual property and may be sued by third parties for infringement or misappropriation of their proprietary rights; (c) we may suffer negative publicity or be sued if the manufacturers of our merchandise or Build-A-Bear branded merchandise sold by our licensees ship products that do not meet current safety standards or production requirements or if such products are recalled or cause injuries; (d) we may suffer negative publicity or be sued if the manufacturers of our merchandise violate labor laws or engage in practices that consumers believe are unethical; and (e) we may suffer negative publicity or a decrease in sales or profitability if the products from other companies that we sell in our stores do not meet our quality standards or fail to achieve our sales expectations; (5) Risks related to owning our common stock such as: (a) fluctuations in our operating results could reduce cash flow or result in restrictions under our credit agreement and we may be unable to repurchase shares; (b) fluctuations in our quarterly results of operations could cause the price of our common stock to substantially decline; (c) the market price of our common stock is subject to volatility, which could in turn attract the interest of activist shareholders; and (d) provisions of our corporate governing documents and Delaware law may prevent or frustrate attempts to replace or remove our management by our stockholders, even if such replacement or removal may be in our stockholders’ best interests; and (6) general risks such as: (a) we may not be able to operate successfully if we lose key personnel; and (b) we may be unsuccessful in acquiring businesses or engaging in other strategic transactions, which may negatively affect our financial condition and profitability. For additional information concerning factors that could cause actual results to materially differ from those projected herein, please refer to our most recent reports on Form 10-K, Form 10-Q and Form 8-K. © 2022 Build-A-Bear Workshop, Inc.

EXECUTIVE SUMMARY

A DIVERSIFIED COMPANY WITH A MULTI-GENERATIONAL BRAND ~35% of stores are not located in a traditional mall United States 365 114 International 3,500+ Associates Known, emotional and leverageable brand equity NEARLY 500 GLOBAL LOCATIONS* MULTI-GENERATIONAL APPEAL DEEP AND EXTENSIVE LICENSING RELATIONSHIPS Covering over 75 entertainment, sports and pop culture properties SKILLED PASSIONATE EMPLOYEES POWERFUL BRAND ~90% Agree BAB is a fun experience for a child** * Store count at end of fiscal Q2-2022. US store count includes 62 third-party retail locations, 6 seasonal shops and excludes vending machines; International includes corporately-managed stores in Canada, the UK and Ireland as well as 62 franchise shops and 3 third-party retail locations ** US Moms of Kids ages 2-12 in the US, C&R Research, 2022 Started as an experiential mall-based retailer focused on children Has transformed into a multi- dimensional, digital, growing business with a broad and diverse consumer demographic EXPANDED OMNICHANNEL CAPABILITIES DRIVING DIGITAL DEMAND Sustained growth in digital demandwhich has grown to be nearly 20% of net retail sales in FY2021 >40% of sales are to tweens, teens and adults DIVERSIFIED PORTFOLIO 4 © 2022 Build-A-Bear Workshop, Inc. 200MM+ Furry friends sold in nearly 25 years CONNECTED

KEY INVESTOR CONSIDERATIONS Accomplished team created an expanding and profitable business now focused on delivering sustained diversified and profitable growth Returned business to profitability while simultaneously building infrastructure to support a multi-dimensional, digital, growing business with a broad and diverse consumer base Profitable business with high margins and free cash flow FY2021 total revenues of $411.5MM and pre-tax income of $50.7MM, the highest in the company's nearly 25-year history. First half 2022 total revenues of $218.3MM and pre-tax income of $25.8MM, both of which are the highest in the company’s history. The Company has affirmed its guidance for FY2022 for total revenues in the range of $440 million to $460 million and pre-tax income in the range of $52 million to $62 million Finished fiscal Q2-2022 with $14.4MM in cash and equivalents. Returning value to shareholders, the Company paid a special dividend in Q4-2021 of approximately $20 million and as of August 9,2022, had completed the $25.0MM stock repurchase program authorized by its Board of Directors on November 30, 2021. The Board authorized a new $50.0MM buyback program on August 31, 2022. Successfully proven and growing diversified omnichannel business model Offerings include experiential brick-and-mortar stores with 1:1 interactive engagement that deliver profitability while supporting omnichannel fulfillment for growing digital demand as well as diverse e-commerce shopping platforms and experiences Expanding addressable consumer base with new experiences and products targeting tween, teen and adult affinity and gifting segments Leverageable brand strength to diversify revenue streams through licensing, content and entertainment development Powerful brand with multi-generational appeal capturing today’s zeitgeist including desire for experience, personalization and “DIY” while recognized as trusted, giving and a part of pop culture Over 10 billion media impressions in 2021 demonstrating strong interest from business, trade, entertainment and consumer outlets Over 3.6MM social media followers (Facebook, Instagram, Twitter, TikTok, Pinterest and YouTube) 5 © 2022 Build-A-Bear Workshop, Inc.

CELEBRATING OUR 25TH ANNIVERSARY IN 2022 Started as a specialty retailer that became a powerful consumer brand Now positioned as an evolved thriving entity that is poised for a compelling future 2022 & moving forward MORE than malls: ~35% of stores are in non-traditional locations MORE than plush toys and MORE than “workshops”: Leveraging brand strength to develop content and entertainment while outbound licensing owned IP's MORE than kids: Building a much broader consumer base and addressable market 2013 Current management joined to drive a successful turnaround that included a comprehensive digital transformation, diversification of retail locations and development of a range of new business models and formats to leverage brand strength 1997 Founded in St. Louis, MO as a groundbreaking experiential mall-based specialty children's retailer 2004 Great success led to IPO on NYSE (BBW); Operated 168 stores in North America and 9 international franchise stores with untapped brand equity 2008-2012 Challenging business period with 4 consecutive years of pre-tax losses 6 © 2022 Build-A-Bear Workshop, Inc.

BELOVED ICONIC BRAND

BUILD-A-BEAR IS A POWERFUL BRAND ~80% aided brand awareness (US Moms of Kids ages 2-12) ~80% of those surveyed said Build-A-Bear was “distinctive” Other retail brands include American Girl, Disney, 5 Below, Claire’s and LEGO Contributing to balanced business seasonality* Jan-Mar Jul-Sep Apr-Jun Oct-Dec • First party data email contacts in CRM database • Vast majority in Bonus Club loyalty program 14MM+ >60% of store visits are planned and the top occasion is a birthday Well-Known Multi-Generational Emotional Trusted Extendable 8 © 2022 Build-A-Bear Workshop, Inc. US data, C&R Research with Moms of kids ages 2-12 2022 Awareness Distinctiveness * Reflects average results of multiple years

DIVERSE AND HIGHLY COVETED C ONSUMERS Build-A-Bear is uniquely positioned to reach a targeted demographic market with strong purchasing power Wide interest across ages Educated with spending power: Professional careers, Appx 70% attended college Over 80% are homeowners Approximately 70% are married <$50K H o u s e h o l d i n c o m e $50K-$100K $100-$150K >$150K ~40% ~40% ~20% The profile of Build-A-Bear’s ~10 million active Bonus Club membership: Interests include: Eating out, books/reading, visiting amusement parks ~70% have children giving us reach within households to approximately 20 million people Household Profile Infant/Toddler Kids Tweens, Teens, Adults Diverse Demographic Over 40% of furry friends are for tweens, teens and adults Source: BBW proprietary loyalty program database 9 © 2022 Build-A-Bear Workshop, Inc.

Our objective is to extend the reach and size of diverse consumer segments through expanded products and licensed relationships, experiences, occasions, partnerships and marketing activities STRATEGIC SHIFT TO CAPTURE OUR SHARE OF DIGITAL ECONOMY RETAIL STORES E-COMMERCE PRIMARY TARGET SECONDARY TARGET FAMILIES WITH CHILDREN COLLECTOR & GIFT GIVERS (TWEENS/TEENS/ADULTS) RETAIL STORE CONSIDERATIONS E-COMMERCE CONSIDERATIONS FAMILIES WITH CHILDREN • Hands on interactive experience as important as the product • Opportunity to engage with brand at younger ages and retain for “one more year” to drive higher “childhood value” • Store positioning where families go for fun and entertainment for ease of shopping • Product foremost with ease and convenience of shopping online • Once challenging to efficiently market, new tools allow us effectively reach teens/adults • Likely to have experienced BABW as a child, they still have strong brand affinity but need a “reason” to reengage COLLECTOR AND GIFT GIVERS (TWEENS/TEENS/ADULTS) Rather than “digitizing” the store experience that families love, a strategic shift to diversify the consumer base fueled strong e-commerce growth after updating and upgrading the digital platform and capabilities with CAGR of 34% since 2016 10 © 2022 Build-A-Bear Workshop, Inc.

BUILD-A-BEAR PARTNERS WITH LEADING BRANDS License relationships with over 75 world-class collaborators from film, TV, art, games, sports and more support collectible, affinity and gifting business with appeal to expanded consumer demographics 13 © 2022 Build-A-Bear Workshop, Inc.

STRONG AFFINITY AND BRAND LOYALTY – HIGHLY MONETIZABLE “When you buy something at Build-A-Bear … there’s an emotional attachment …The thing about Build-A-Bear is that it isn’t just for kids. Whatever you’re into, and whatever your age, Build- A-Bear probably has a stuffed animal accessory for you.” Consumers' emotional connection with the Build-A-Bear brand position it to be more resilient with the ability to diversify beyond toys, beyond kids and beyond malls 14 © 2022 Build-A-Bear Workshop, Inc.

GROWING OMNICHANNEL REVENUE MODEL

A MODEL OF CONTINUOUS ENGAGEMENT …EVEN IN THE COVID DISRUPTION Leverage the POWER and EMOTIONAL CONNECTION CREATED by THE ONE-TO-ONE retail guest engagement & marketing model to DRIVE BRAND EQUITY RETAIL MONETIZE the earned BRAND EQUITY in CATEGORIES & CHANNELS beyond traditional “retail” BRAND EQUITY BRAND LEVERAGE Into NEW CATEGORIES & CHANNELS CONSUMER Expand the CONSUMER BASE & ENGAGEMENT by enabling participation in the brand in multiple ways A continuous circle of engagement driving retail and leveraging brand equity is designed to build a more powerful and profitable business model 16 © 2022 Build-A-Bear Workshop, Inc.

PROFITABLE STORES BUILD BRAND AND SUPPORT OMNICHANNEL 97% of corporately-managed stores in North America were profitable in 2021 with over 25% average store contribution and 99% were EBITDA positive with an average rate of 28% Iconic hands-on store experience builds emotional connection and brand awareness creating consumer loyalty that becomes a driver to build e-commerce and other revenue streams A range of store formats and designs allows retail locations to operate with less total square footage and higher productivity per square foot Physical stores act as mini distribution centers for increased digital demand fulfillment (no additional labor or overhead needed) 17 © 2022 Build-A-Bear Workshop, Inc.

OUR EXPERIENCES CREATE MEMORIES Plan a family visit to build (stuff) a furry friend for an engaging experience that forms an emotional connection and makes a shared special memory Celebrate special occasions with friends and loved ones including birthdays and holidays. Host a "Build- A-Party" for a shared group memory Make a gift that is personal and from the heart for family, friends or a favorite teacher. Personalize it with a recorded message that goes in the bear From Valentine's Day to anniversaries, give a hug that will last a lifetime 18 © 2022 Build-A-Bear Workshop, Inc.

GLOBAL LOCATIONS WITH EXPANSION OPPORTUNITIES Corporately-managed and third-party retail locations in North America and Europe; International franchise stores in South America, Africa, Asia and Australia India (3) South Africa (20) Australia (15) Chile (7) US (365) Canada (10) China (9) Middle East (8) UK (37) Ireland (2) Corporately-managed stores in the United States, Canada, the United Kingdom and Ireland as of end of fiscal Q2-2022 including 6 seasonal shops and excluding vending machines Third party retail includes 62 locations in the US and 3 locations in the Caribbean with Beaches Resorts International franchise locations in Chile, South Africa, Australia, India, China, Kuwait, Qatar and the United Arab Emirates as of end of Q2 2022 19 © 2022 Build-A-Bear Workshop, Inc. Caribbean (3)

DIVERSE DIGITAL EXPERIENCES Build-A-Bear offers various online shopping experiences and product options to meet the preferences of diverse consumer segments for multiple occasions Third party marketplaces allow consumers to shop online at their preferred site Slightly cooler and slightly edgier, while still on brand, with many web-exclusive products for teen and adult gift givers and collectors Makes gift shopping easy and fun with options sorted by season, occasion, recipient, price and category 20 www.buildabear.com An e-commerce option that delivers convenience and efficiency; popular with gift givers and affinity segments A guided process that gives consumers a higher customization experience with additional engagement features A revolutionary and unique interactive make-your-own animated digital experience to create the perfect furry friend from anywhere the consumer wants to shop A new gifting solution offering stylish, themed, curated gift boxes for a convenient online option for a wide range of adult-to-adult gifting occasions © 2022 Build-A-Bear Workshop, Inc.

GROWING AND PROFITABLE E-COMMERCE PLATFORM 2021 digital demand of $73MM representing a 34% CAGR since 2016 E-commerce in both US and UK Positive site traffic trends +30% over prior year* Unique visitors average ~2.6MM/month** Site visits average ~4.2MM/month** Addition of Salesforce technology expanded digital capabilities and efficiencies in marketing and analytics Ongoing digital developments and initiatives planned or underway designed to drive further growth including recently launched experiential Bear Builder 3D Workshop Order fulfillment supported by new warehouse management system and omnichannel capabilities In additional to modern warehousing, physical stores serve as mini distribution centers for online orders leveraging existing real estate and labor costs *FY2021 through December **Combined US and UK sites 21 Nearly 20% of net retail sales in 2021, up from 4% in 2012 © 2022 Build-A-Bear Workshop, Inc. Continued momentum with growth in consolidated digital demand for first half 2022 +~180% compared to first half 2019

DIGITAL MARKETING CAPABILITIES DRIVING E-COMMERCE DIGITAL TRAFFIC OPTED-IN EMAIL LIST ECOMMERCE DRIVEN BY DIGITAL ADVERTISING +13% +16% +47% INCREASE IN IMPRESSIONS DRIVEN BY DIGITAL ADVERTISING +122% INCREASE IN GOOGLE SEARCH FOR "BUILD-A-BEAR" IN US +32% Traffic driven with messaging to over 14MM opted-in email accounts including ~10MM Bonus Club members as well as on social media platforms like Facebook, Instagram, Google Ads (YouTube, Search, Display), TikTok, and programmatic marketing +97% increase in digital transactions from new guests Digital demand +9% 2021 vs 2020 +157% 2021 vs 2019 DIGITAL TRANSACTIONS FROM LAPSED GUESTS +96% Comparisons are for FY2021 compared to FY2020 unless otherwise noted 22 © 2022 Build-A-Bear Workshop, Inc.

DIVERSE FORMATS AND BUSINESS MODEL OPTIONS • Multiple formats serving a wide range of locations including tourist, traditional malls, shop-in-shops including Walmart, seasonal venues or event locations • Can operate for days (events such as the NFL Experience), weeks (Gaylord seasonal shops) to months and years Third-party retail model • Wholesale business model with entertainment and hospitality partners. Top partners include Carnival Cruise Lines and Great Wolf Lodge • Little to no startup capital to open stores and no direct operational overhead (rent, labor, etc) Currently 65 locations with 12 partners/ operators primarily in the US Corporately-managed store model 352 long-term and seasonal locations in the US, Canada, the UK and Ireland • 99% of NA stores were profitable in FY2021 with 28% average EBITDA as a percent of sales • Omnichannel capabilities drive efficiency Wide range of formats: Multiple business model options: International franchise model Currently 62 locations in 8 countries • Long-term potential for expansion in existing and new territories • Established efficient supply chain support for sourcing products, fixtures and equipment Convenient Walmart Shops Traditional Mall Stores Tourist Locations Concourse Model Seasonal Shops Vending Machines Events Cruise Ships 23 Store counts at end of fiscal Q2-2022 excludes vending machines © 2022 Build-A-Bear Workshop, Inc.

NOT OVERSTORED: FUTURE GROWTH PLANNED IN NORTH AMERICA Build-A-Bear can match the real estate opportunity with the business model and store format to optimize profitable growth with plans to add approximately 20 locations in fiscal 2022 in North America through a combination of corporately-managed and third-party retail models Room to profitably expand: 97% of NA stores were profitable in FY2021 with over 25% average contribution margin and 99% were EBITDA positive with an average rate of 28% • Support for digital demand: Omnichannel capabilities drive store efficiency • High flexibility: Strong lease optionality with over 75% of locations having a lease event in next 3 years giving high flexibility to continually refine portfolio • Innovation pipeline - Build-A-Bear Adventure, a destination party-oriented concept, diversifies our location strategy and experiences - New vending machine (Automatic Teddy Machine or “ATM”) is low-labor, efficient way to add non-traditional locations such as airports, children’s hospitals and more - Hybrid center locations extend reach beyond enclosed traditional malls 24 © 2022 Build-A-Bear Workshop, Inc.

LEVERAGING BRAND STRENGTH TO DIVERSIFY REVENUE STREAMS OUTBOUND LICENSING leverages the emotional connection and trust that consumers have for Build-A-Bear allowing for expansion into non-plush products sold in other retailers 25 © 2022 Build-A-Bear Workshop, Inc.

LEVERAGING BRAND STRENGTH TO DEVELOP CONTENT & ENTERTAINMENT The emotional connection with the brand makes content and story-telling a central part of consumer engagement. Build-A-Bear Entertainment creates original music, videos and movies in partnership with leaders in the entertainment industry that serves as marketing to drive interest in other revenue channels MOVIES RADIO MUSIC 26 © 2022 Build-A-Bear Workshop, Inc.

FINANCIALS

2021 FINANCIAL SNAPSHOT TOTAL REVENUES $411.5MM +61.2% OVER 2020 +21.6% OVER 2019 PRE-TAX INCOME +$70.9MM OVER 2020 +$49.1MM OVER 2019 HIGHEST IN NEARLY 25-YEAR HISTORY CASH AND EQUIVALENTS $32.8MM* +$34.8MM 2020 +$26.7MM 2019 GROSS PROFIT MARGIN 53.0% +1,480 BPS VS 2020 +760 BPS VS 2019 THE MOST PROFITABLE YEAR IN BBW HISTORY Delivered the highest revenue in over a decade and highest profit in company’s history even with ongoing impact of global pandemic Positive momentum has continued into Q1 2022 and while we are navigating an environment with higher costs and a tight supply chain as well as monitoring the evolving external environment, we have issued guidance reflecting further growth for fiscal 2022 compared to fiscal 2021 $50.7MM 28 © 2022 Build-A-Bear Workshop, Inc. * After ~$20MM special dividend paid in Dec ‘21

CONTINUED MOMENTUM IN FISCAL 2022 TOTAL REVENUES $218.3MM VS $186.4MM IN H1 2021* VS $87.0MM IN H1 2020** PRE-TAX INCOME VS $22.7MM IN H1 2021* VS ($32.6MM) IN H1 2020** EBITDA $32.1MM $25.8MM 29 © 2022 Build-A-Bear Workshop, Inc. H1 2022 DELIVERED RECORD-SETTING TOTAL REVENUES AND PROFITABILITY FISCAL 2022 GUIDANCE AT THE MIDPOINT OF THE RANGE TOTAL REVENUES ~$450MM VS $411.5MM IN FY2021 VS $255.3MM IN FY2020 PRE-TAX INCOME ~$57MM VS $28.8MM IN H1 2021* VS ($25.9MM) IN H1 2020** VS $50.7MM IN FY2021 VS ($20.2MM) IN FY2020 VS $63.0MM IN FY2021 VS ($7.0MM) IN FY2020 EBITDA ~$70MM Guidance range of $440MM-$460MM HIGHEST IN BBW’S 25-YEAR HISTORY Guidance range of $52MM-$62MM Guidance range of $65MM-$75MM The annual guidance takes into account anticipated ongoing inflationary pressures as well as plans to mitigate the impact on margin and assumes no additional material changes in either our supply chain, the macro environment or relevant foreign currency exchange rates HIGHEST IN BBW’S 25-YEAR HISTORY HIGHEST IN BBW’S 25-YEAR HISTORY In fiscal H1-2021, the Company’s European stores were temporarily closed for the majority of first quarter In fiscal H1-2020, the Company’s North American and European stores were temporarily closed as of March 18, 2020; by the end of H1 2020, 90% of stores had reopened Highest H1 in company history Highest H1 in company history Highest H1 in company history

CURRENT MANAGEMENT LED SUCCESSFUL BUSINESS TURNAROUND $384 $411.5 2012 2021 In millions TOTAL REVENUES 2021 highest level in over a decade EBITDA Over $85MM swing in profitability PROFITABLE STORES In North America LOCATION DIVERSIFICATION More than doubled non-traditional locations AVERAGE DOLLARS PER TRANSACTION Over 50% appreciation in Avg DPT Contribution margin <10% Contribution margin >25% 2012 2021 $35.50 $53.33 12% 35% 2012 2021 % of locations in non-traditional malls 80% 97% 2012 2021 % of NA stores that are profitable DIGITAL DEMAND Digital revenue has grown to $73MM 2012 2021 % of Net Retail Sales 4% 18.3% In millions 30 © 2022 Build-A-Bear Workshop, Inc. $63.0 EOY fiscal 2021 vs EOY fiscal 2012

CAPITAL MARKETS SUMMARY* Board authorized a share repurchase program of up to $25MM on November 30, 2021 which the company completed on August 9, 2022. The Board authorized a new $50.0MM buyback program on August 31, 2022** Exchange and Ticker NYSE: BBW Corporate Headquarters St. Louis, MO 15.3MM 15.5MM $23.50 / $13.81 $240.1MM $0 Basic Shares Outstanding* Diluted Shares Outstanding* 52 Week High/Low Market Capitalization Borrowings on Credit Facility Information on Shares, Market Capitalization and Borrowings on Credit Facility as of July 30, 2022 31 © 2022 Build-A-Bear Workshop, Inc. * Basic and Diluted shares are the year-to-date weighted average as of July 30, 2022 ** Share repurchase program in effect through August 31, 2025

ACCOMPLISHED & DRIVEN TEAM FOCUSED ON DIVERSIFIED GROWTH

2020: RAPID AND DISCIPLINED COVID RESPONSE Focused immediately on preserving CASH and reducing EXPENSES Shifted to VIRTUAL workforce at HQ Pivoted to manage TRIPLE-DIGIT increase in e-commerce demand Furloughed over 90% of workforce; Salaries temporarily reduced for all others Simultaneously executed key initiatives with emphasis on driving growth Accelerated the digital transformation to drive awareness, demand and revenue • Drove demand with key licensed products with e-commerce first strategy • Innovated with digital only promotions and events Rapidly evolved retail leveraging rent optionality and safely reopening with modified service model • Implemented omnichannel initiatives with Buy Online Ship From or Pickup in Store leveraging available labor and inventory • Over 99% of leases were renegotiated in NA (and >90% in EU) Secured financial stability and well-being • Secured new asset-based credit agreement • Restructured organization and reduced corporate overhead Initial crisis management when governmental mandates forced all stores to temporarily close 33 © 2022 Build-A-Bear Workshop, Inc.

2021: SHIFT TO DELIVERING PROFITABLE GROWTH Further acceleration of digital transformation Leverage financial position to drive growth Expand digital capabilities and drive optimization across the entire organization to grow revenues and improve profitability including content and entertainment initiatives Extend ways to connect with and meet the changing needs of consumers across all retail channels while driving omnichannel engagement and expanded delivery options Maintain the financial discipline required to support our business while leveraging strong balance sheet to make select strategic investments designed for future growth while continuing to manage through an environment with higher costs and a tight supply chain as well as monitoring the evolving external environment Rapidly evolve omnichannel retail capabilities 34 © 2022 Build-A-Bear Workshop, Inc.

2022: PLANS FOR SUSTAINED PROFITABLE GROWTH Increase repeat purchases leveraging the addition of new advanced digital capabilities Expand addressable consumer base beyond kids with new products and incremental purchase occasions Utilize digital media, content & entertainment as marketing and brand-building tools to engage consumers and drive sales Strategically add locations in North America thru corporate and third-party retail focused on tourist locations Capitalize on BAB’s 25th celebration to drive incremental visits and sales Re-introduce in-store parties (after COVID hibernation) with a fresh take and homage to our 25th “birthday” Develop new digital experiences such as the recently launched Bear Builder 3D Workshop to drive digital demand 2 Leverage omnichannel capabilities while evolving retail experiences 1 Leverage ongoing digital transformation to drive growth Maintain disciplined expense management in an environment with higher costs and a tight supply chain, including SG&A, ongoing lease negotiations as we continue to evolve our real estate portfolio while also monitoring the changing external environment Strategically manage capital to support strategic initiatives while returning value to shareholders 3 Leverage financial strength and drive sustained profitability © Build-A-Bear Workshop, Inc. 35 © 2022 Build-A-Bear Workshop, Inc.

2022: SELECT PLANNED INITIATIVES Leverage omnichannel capabilities while evolving retail experiences Leverage financial strength and drive sustained profitability Leverage ongoing digital transformation to drive growth …To reach more consumers Drive lifetime value: leverage advanced capabilities including new loyalty module to use our rich first party CRM database Expand lead acquisition: grow addressable market with focus on gifting, affinity and collectible consumers …To offer more experiences Expect to add ~20 locations in North America in fiscal 2022 through the planned expansion of corporate and third-party retail focused on tourist locations Capitalize on Company’s 25th anniversary celebration throughout 2022 with exclusive products and events After not celebrating birthdays and parties in our Workshops due to COVID for nearly 2 years, in-store parties have been reintroduced which have historically accounted for ~5% of retail sales Leverage digital experiences such as Build-A-Bear Gift Shop, the Bear Builder, Bear Cave and the recently launched Bear Builder 3D Workshop as well as new HeartBox gifting option …To fuel innovation Expand newly created vending machine model or ATM’s (Automatic Teddy Machines) through a relationship with Hudson, a leader in travel retail, adding 25-50 ATM’s/locations in airports over the next 2 years Launch of a new retail concept called BUILD-A-BEAR ADVENTURE in off-mall locations that includes party rooms, game room, the Build-A-Bear experience and e-commerce fulfillment capabilities with first store open in St. Louis, MO 36 © 2022 Build-A-Bear Workshop, Inc.

PROVEN MANAGEMENT TEAM Sharon Price John President and Chief Executive Officer Former President of Stride Rite Children’s Group LLC, a division of Wolverine World Wide, Inc. Also: Hasbro, Inc., VTech Industries, Inc. and Mattel, Inc. Eric Fencl Chief Administrative Officer, General Counsel and Secretary Former Executive Vice President, General Counsel and Secretary: Outsourcing Solutions Inc.; Legal positions at Monsanto Company, McDonnell Douglas Corporation and Bryan Cave LLP. Also: Arthur Young & Company Jennifer Kretchmar Chief Digital & Merchandising Officer Former Senior Vice President of Product and Brand Management of Stride Rite Children’s Group LLC, a division of Wolverine World Wide, Inc. Also: The Timberland Company, Goldbug, and the United States Department of Agriculture Foreign Service Chief Operations Officer J. Christopher Hurt Former Senior Vice President, North America and Vice President/ General Manager - Factory, Canada, Mexico Retail American Eagle Outfitters, Inc.; Also: Polo Ralph Lauren and The Procter & Gamble Company Voin Todorovic Chief Financial Officer Former Head of Finance and Operations Lifestyle Group Wolverine World Wide, Inc.; Vice President - Finance and Administration of the Stride Rite Children’s Group. Also: Collective Brands, Inc. and Payless ShoeSource 37 © 2022 Build-A-Bear Workshop, Inc. Passionate and driven management team that returned the company to profitability while simultaneously executing a multi-faceted diversification strategy to leverage the strength of the brand while developing an integrated omnichannel platform, restructuring the organization and adding critical talent, creating new retail business models and systematically rebuilding IT infrastructure to support strategy and growth

ACCOMPLISHED BOARD OF DIRECTORS George Carrara Director Narayan Iyengar Director Maxine Clark Director and Founder Sharon Price John Director, President and Chief Executive Officer Director Robert L. Dixon Jr. Non-Executive Chairman Craig Leavitt Lesli Rotenberg Director Former CEO/Director: Kate Spade & Company; President Global Retail: Link Theory Holdings. Also: Diesel, S.p.A, and Polo Ralph Lauren CEO: Clark-Fox Family Foundation, Founder and Former Chief Executive Bear: Build-A-Bear Workshop. Also: Payless ShoeSource and The May Department Stores Company Former President of Stride Rite Children’s Group LLC, a division of Wolverine World Wide, Inc. Also: Hasbro, Inc., VTech Industries, Inc. and Mattel, Inc. Former Chief Programming Executive & General Manager, Children’s Media & Education of the Public Broadcasting Service (PBS); Senior management at Discovery Communications, Inc. Former Senior Vice President, Digital and E-Commerce: Albertsons Companies; Vice President, E‑Commerce and Digital Analytics: The Walt Disney Company. Also: McKinsey & Company Former President and Chief Operating Officer: Kate Spade & Company; Chief Operating Officer: Tommy Hilfiger North America. Also: Mirage Apparel Group and Price Waterhouse Owner: The RD Factor, Inc.; Former Global Chief Information Officer and Senior Vice President of PepsiCo, Inc. Also: Procter & Gamble Company 38 © 2022 Build-A-Bear Workshop, Inc.

BUILD-A-BEAR IN SUMMARY Highly profitable business with strong profit margins and significant cash resources Strong brand that connects emotionally with global reach Poised for future advancement with an established platform reaching broad consumer segments through a diversified omnichannel business model Led by a seasoned and accomplished management team that transformed the business into a profitable, digital, growth company 39 © 2022 Build-A-Bear Workshop, Inc.

Explanatory Note on Non-GAAP Financial Measures 40 © 2022 Build-A-Bear Workshop, Inc. Build-A-Bear Workshop (NYSE: BBW) reports it financial results in accordance with generally accepted accounting principles (GAAP). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP financial measures. These results are included as a complement to results provided in accordance with GAAP because management believes these non-GAAP financial measures help identify underlying trends in the Company’s business and provide useful information to both management and investors by excluding certain items that may not be indicative of the Company’s core operating results. These measures should not be considered a substitute for or superior to GAAP results. These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measure within this appendix.

Reconciliation of Non-GAAP Measures: 41 © 2022 Build-A-Bear Workshop, Inc. $ in millions H1 FY22 FY22* Income before income taxes (pre-tax) $25.8 $50.7 Interest $0 $0 Depreciation & Amortization $6.3 $12.3 Earnings before interest, taxes, depreciation and amortization (EBITDA) $32.1 $63.0 *FY2022 at mid-year of annual guidance

Reconciliation of Non-GAAP Measures: Q2 and Fiscal 2021; Q2 and Fiscal 2020 42 © 2022 Build-A-Bear Workshop, Inc. $ in millions H1 FY21 FY21 Income before income taxes (pre-tax) $22.7 ($20.2) Interest $0 $0 Depreciation & Amortization $6.1 $13.2 Earnings before interest, taxes, depreciation and amortization (EBITDA) $28.8 ($7.0) $ in millions H1 FY20 FY20 Income (Loss) before income taxes (pre-tax) ($32.6) $1.6 Interest $0 $0 Depreciation & Amortization $6.7 $13.7 Earnings (Loss) before interest, taxes, depreciation and amortization (EBITDA) ($25.9) $15.3

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