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Executive Summary:
In response to renewed tariff pressures under the Trump administration, Build-A-Bear Workshop is proactively pulling forward inventory—particularly core, year-round products—to enhance supply chain flexibility and minimize cost impacts. During a recent earnings call, CFO Voin Todorovic emphasized the company’s ongoing strategy to diversify sourcing operations and reduce dependency on China, expecting less than 50% of inventory to come from China in 2025.
The retailer has expanded its vendor network and manufacturing footprint across China, Vietnam, and the U.S., working closely with suppliers to offset rising costs without immediately raising prices. Approximately 73% of Build-A-Bear’s sourcing is managed by five key vendors, allowing for coordinated production and materials management.
Goods are funneled through key logistics hubs, including its U.S.-based “Bearhouse” facility in Ohio and third-party centers in the UK, China, and California. While the shifting trade environment remains challenging, Build-A-Bear believes its supply chain agility and global infrastructure position it well to handle ongoing disruptions and support international growth.
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