Build-A-Bear Workshop Outpaces Nvidia, Microsoft, Oracle

Nvidia may be the most valuable company in the world, surging to a record-high $4.395 trillion market capitalization over the past few months, but when it comes to stock growth, one surprising company has it beat: Build-A-Bear Workshop.

Build-A-Bear’s stock grew by more than 2,000% over the past five years, making it one of the top 20 companies in the world by share growth, per The Washington Post. Company shares are up over 60% year-to-date at the time of writing. According to Build-A-Bear’s earnings report for the second quarter ending August 2, total revenue hit $124.2 million, an 11% increase from the same period last year. It was the company’s most profitable second quarter in its history.

Build-A-Bear’s stock growth beats the world’s biggest tech giants, such as Nvidia (surged by over 1,300% in the past five years, with shares up over 30% year-to-date); Microsoft (stock grew by 147% across the past five years); and Oracle (stock swelled 444% across the same time period).

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At Build-A-Bear, customers stuff a plush toy, add a toy heart, and dress the stuffed animal. The company was founded in October 1997 in Saint Louis, Missouri, and the experience in stores has remained consistent since its founding.

The company’s CEO, Sharon Price John, who took over in 2013, told CNBC that the process of making a bear is “a really emotional, memorable experience that creates a tremendous amount of equity.” The store’s in-person experience contributes to its resilience, even as other mall stores like Claire’s close hundreds of locations.

^{Build-A-Bear Workshop in Denver, Colorado. Photo by Joe Amon/The Denver Post via Getty Images}

“Those strong feelings that consumers have for brands are very stretchable beyond just that one experience,” John told the outlet.

University of Pennsylvania Marketing Professor Americus Reed told CNBC that the “ritualistic” process of creating a stuffed animal at Build-A-Bear creates a memorable experience that is “really hard to replicate.” Build-A-Bear creates a deeper connection with its customers, building a sense of loyalty, Reed explained.

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Zach Wray, a customer whose family has hundreds of bears, told The Washington Post that the experience of creating a stuffed animal is what keeps his kids coming back to Build-A-Bear.

“They make it really special for the kids,” Wray told the outlet.

Nostalgia also plays a role in the company’s growth. A recent survey released by Build-A-Bear earlier this month shows that 92% of adults still have their childhood stuffed animal, and nearly 100% say that teddy bears are for all ages. Two-fifths (40%) of Build-A-Bear’s customers are adults, not kids, according to The Washington Post.

Build-A-Bear has 627 stores across 32 countries, 100 of which opened within the past two years. The company told The Washington Post that it plans to open 60 more locations this year, and that almost all of its stores in North America were profitable.

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