Brew Markets: The Right Stuff—Build-A-Bear’s CEO & Lululemon's Rebirth of Cool

Date: December 12, 2025
Host: Ann Berry

Overview

This episode of Brew Markets spotlights compelling stories in the stock market, with a deep dive into the turnaround of Build-A-Bear Workshop under CEO Sharon Price John and the latest shake-ups at Lululemon. Host Ann Berry guides listeners through the challenges and triumphs of public company turnarounds, discusses brand strategy, retail trends, and touches on the viral rise of nostalgia-driven markets.

Key Discussion Points & Insights

1. Build-A-Bear’s Turnaround: From Losses to Record Highs

Guest: Sharon Price John, President & CEO, Build-A-Bear Workshop

• Turnaround Context (02:10–03:22):

  • When Sharon joined in 2013, Build-A-Bear had lost nearly $48 million the prior year; around 20% of stores were unprofitable.
  • Today: $700M market cap, recent record Q3 revenue of $122M—even after weathering COVID-19, supply chain challenges, and tariffs.

• Managing Tariffs and Market Reactions (03:22–05:47):

  • Despite record revenue, stock dipped 15% due to tariff pressures, but fundamental guidance was reaffirmed.
  • Sharon on handling the investor reaction:

    “There should have been no surprises from what we've reported and what we've shared about the tariff impact… Sometimes, tariffs or no tariffs, people trade on the headlines. And then the second day you get in there and people start to understand, oh, the fundamentals are absolutely fine.” (04:46)

  • Strategy: Pulled forward inventory to minimize tariff exposure.

2. Redefining the Brand & Retail Footprint

• Expanding Addressable Market (07:07–09:17):

  • Moved from focusing exclusively on kids to targeting ‘kids and adults’—catering to nostalgia and the so-called “cadulting” trend.
  • New venues: Beyond malls to cruise lines, resorts, amusement parks, holiday pop-ups.
  • Data-driven: High-performing stores were those operating as ‘destinations’ drawing consumers from 50+ miles away.

• International Model Shift (11:03–12:25):

  • Transitioned from a pure franchise model to a ‘partner operated’ hybrid—supporting global expansion in a capital-light way.

3. Bricks, Clicks, and Experience

• Online Strategy & E-commerce (12:25–14:39):

  • Recognized the in-store heart ceremony couldn’t be fully replicated online.
  • Diversified: E-commerce caters to gift-givers and collectors, especially adults (now 40% of business).
  • Sharon on the importance of physical stores:

    “We have to have now these 200, almost 250 million heart ceremonies that create that indelible memory for us to have a long term vision…” (14:41)

• Nostalgia’s Power (14:39–15:14):

  • “Cadulting” and nostalgia have driven traffic and sales—both in-store and online, with adult superfans and collectors.

4. Licensing, Partnerships & Content Transcending Retail

• Brand Collaborations (16:18–17:29):

  • Luxury (Swarovski), pop culture (Ted Lasso, Deadpool).
  • Dedicated 18+ “Bear Cave” microsite, leaning into edgier licensed products.
  • Sharon humorously diffuses concerns:

    “R rated bears, they're the cutest versions of Deadpool you've ever seen.” (17:53)

• Mall Trends & Retail Destinations (18:10–21:01):

  • Despite “mall apocalypse” fears, Build-A-Bear has succeeded by focusing on profitable, high-traffic malls and becoming their own destination.
  • Consumers returning to malls post-pandemic for experience-driven shopping.

• Specialty Toy Retail Market (21:01–22:40):

  • Sharon, as Toy Association chair, addresses industry changes since the fall of Toys ‘R’ Us:
    • Specialty stores like FAO Schwarz and Hamley’s filling the void.
    • Plush toys as a strong category—“all ships rising”.

5. Leveraging IP: Build-A-Bear as Media Brand

• Path from Physical to Intellectual Property (22:40–27:21):
  • Sharon’s experience at Hasbro, Mattel, and Disney informed a strategy to treat Build-A-Bear as a brand, not just a retailer.
  • Multiple content initiatives:
    • Films (Honey Girls with Sony/Netflix; Merry Mission).
    • Animated episodic series to debut on Build-A-Bear’s YouTube channel—a scoop revealed in the episode:

      “The new episodic animated series will be on our own YouTube channel.” (26:45–27:27)

  • Outbound licensing and “mini beans” for retail partners.

6. Community & The Build-A-Bear Foundation

• Philanthropy and Social Impact (27:34–29:52):
  • Build-A-Bear Foundation focuses on child well-being and literacy (notably with First Book).
  • Initiative: Giving books and bears to Title 1 second graders, using plush toys to help kids develop reading skills and empathy.

Notable Quotes & Memorable Moments

• On Investors & Tariffs:

  “There should have been no surprises from what we've reported and what we've shared about the tariff impact… Sometimes, tariffs or no tariffs, people trade on the headlines.” – Sharon Price John (04:46)

• Build-A-Bear’s Multigenerational Play:

  “We expanded our addressable market to kids and adults… Now people who had been to Build a Bear. So we were becoming multigenerational.” – Sharon Price John (07:58)

• Experience vs. E-Commerce:

  “No matter how you slice it, that store experience… is why we exist… That’s where we build our equity. That's why we're able to stretch and halo into things where you don't have to have the experience.” – Sharon Price John (13:15–14:39)

• Nostalgia Post-Pandemic:

  “The COVID situation almost said, hey, so this is what that feels like if we really do it. And everyone went, I don't really like that.” – Sharon Price John on why consumers returned to malls (19:30)

• Brand as Platform:

  "The brand is bigger than the place… Vertical retail is a cash flow machine and we then need to build out new verticals.” – Sharon Price John (23:17–24:50)

• Media Expansion:

  “The new episodic animated series will be on our own YouTube channel… There’s a nugget.” – Sharon Price John (26:45–27:28)

• On the Build-A-Bear Foundation:

  “Kids love to sit with their teddy bears. It helps them improve their reading skills when they can read to their own furry friends. So, kind of takes down the anxiety.” – Sharon Price John (29:25)

Additional Market Stories

Lululemon: In Search of Its 'Cool’ Factor (30:32–31:12)

• Earnings beat expectations; CEO Calvin McDonald to step down.
• Founder Chip Wilson publicly criticized the brand for “loss of cool.”
• Board seeking a leader for “growth and transformation.”

Cannabis Stocks Surge on Policy News (31:12–32:09)

• Cannabis stocks soar (~30%) on reports President Trump plans to reclassify marijuana, facilitating investment and easier financing.
• Notable tickers: Tilray, Canopy Growth, Innovative Industrial Properties, YOLO, WEED, TOQUE.

Timestamps for Key Segments

• Build-A-Bear Turnaround Story – 02:10–05:47
• Expanding International & Destination Retail – 07:07–11:03
• E-commerce Experience & Nostalgia – 12:25–15:14
• Brand Partnerships & “Bear Cave” – 16:18–17:53
• Mall Trends & Toy Retail Market – 18:10–22:40
• Expanding into Content/IP – 22:40–27:28
• Build-A-Bear Foundation Work – 27:34–29:52
• Lululemon CEO Shakeup – 30:32–31:12
• Cannabis Stocks Surge – 31:12–32:09

Conclusion

This episode delivers valuable behind-the-scenes insights on how Build-A-Bear reinvented itself—not just as a retailer, but as an emotional and multigenerational brand spanning experience, e-commerce, partnerships, and media. The show closed with updates on Lululemon's leadership shakeup and the cannabis sector’s policy-fueled rally. Throughout, Sharon Price John’s candor and strategic vision exemplifies effective public company leadership and adaptation in changing markets.