Build-A-Bear stock has surged 1,020% in the last five years, marking its most profitable first half amid a challenging retail landscape. The company’s diversified business model has driven revenue and earnings growth, outperforming tech giants like Apple and Tesla with a 1,250% return.

With a record-breaking first half in fiscal 2025, Build-A-Bear’s revenue hit $252.6 million, a 11.5% increase year-over-year. Pre-tax income rose by 31.5% to nearly $35 million, with diluted earnings per share reaching $2.11, both company records. Management raised full-year guidance for revenue, income, and new store growth.

Expanding beyond traditional retail, Build-A-Bear leverages partner-operated stores for higher-margin revenue. Commercial revenue from wholesale distribution to partner-operated stores has seen a 63% compound annual growth rate, while international franchise stores revenue soared 177% in the last five years. The company has been ramping up social media presence to boost digital sales.

The shift to a capital-light retail model has increased free cash flow by 44% over the past four years. Build-A-Bear returned cash to shareholders, repurchasing $31 million worth of stock last year. Despite being a target for short sellers, the company’s strong brand equity, improving margins, and modest P/E ratio make it an attractive investment.

Read more at Yahoo Finance: What to Know Before Buying Build-A-Bear Stock