BBW

Expects Growth in Total Revenue and Expansion in Gross Profit Margin in Fiscal 2020 Third Quarter Compared to the Fiscal 2019 Third Quarter Despite Ongoing COVID-19 Impact Build-A-Bear Workshop,

Build-A-Bear Workshop, Inc. (NYSE: BBW) today issued an update to its business expectations for its fiscal 2020 third quarter, the 13-weeks ending October 31, 2020, in conjunction with anticipated investor meetings. The Company noted that while the COVID-19 pandemic continues to impact its operations inclusive of select temporary store closures and reduced operating hours, it currently expects to achieve total revenue growth and expand its gross profit margin as compared to the fiscal 2019 third quarter. The Company attributes this improvement to actions taken to accelerate its digital transformation strategic initiative including enhancing omnichannel capabilities, improving fulfillment efficiencies and adding innovative product offerings while evolving its consumer communications programs. In addition, the Company has reimagined its store experience in ways that comply with recommended safety protocols and has recently executed sweeping favorable rent renegotiations enabled by the high level of lease optionality in its retail portfolio. These initiatives, along with the continuing focus on disciplined expense, cash and inventory management, should position the Company to achieve a significant improvement in profitability for the quarter compared to the pre-tax loss reported in the third quarter of fiscal 2019.

Build-A-Bear Workshop, Inc. (NYSE:BBW) today issued an update to its business expectations for its fiscal 2020 third quarter, the 13-weeks ending October 31, 2020, in conjunction with anticipated investor meetings.

Build-A-Bear Workshop® (NYSE:BBW) brings the fun and magic to the Christmas season with their holiday assortment of furry friends including the popular Merry Mission™ line, classic movie characters, holiday-inspired furry friends and other great gift options for everyone on your list. Celebrate the season

Build-A-Bear Workshop has been fighting against the demise of the mall for many years - now, COVID-19.The more things change the more they stay the same - Build-A-Bear Workshop enjoys a very loyal demographic.As bricks and mortars come crumbling down, how can Build-A-Bear Workshop keep standing?

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Management is doing everything under their control to shift demand towards their e-commerce channel. But doing so, the company loses the in-store experience BBW is all about.The way stores can operate following social distancing guidelines completely disrupts its business model.By going online, the company would lose its product differentiation angle, which in turn would increase the amount of competition.