What Build-A-Bear Workshop, Inc. told the SEC could break it.

Build-A-Bear sources ~75% of inventory purchases from just five vendors (all with primary manufacturing in Asia), and owns no factories — concentrating supply in a handful of unnamed third parties.

“Five vendors, each of whose primary manufacturing facilities are located in Asia, accounted for approximately 75 % of inventory purchases in 2025 and 69 % in 2024 .”

Build-A-Bear relies on third parties for all warehousing and distribution in the western U.S. and Europe — including a third-party distribution center in Selby, England whose agreement ended January 2026 — creating logistics-continuity risk.

“we rely on third parties to manage all of the warehousing and distribution aspects of our business in the western U.S. and Europe. For example, as noted above, in Europe, we contract with a third-party distribution center in Selby, England under an agreement that ended in January 2026”

Build-A-Bear's petroleum-derived plush materials and freight costs are exposed to oil price spikes; it cites US–Israel–Iran hostilities disrupting oil flows and notes it may be unable to pass higher petroleum costs to guests.

“Recent hostilities between the United States, Israel and Iran and others have caused significant disruption in the normal flow of oil, refined petroleum products and related commodities, with consequent price rises of oil as well as other non-petroleum products and associated economic volatility.”

Build-A-Bear buys most merchandise directly from manufacturers in foreign countries, primarily China and Vietnam, concentrating its supply chain in two Asian sourcing countries.

“We purchase the most of our merchandise directly from manufacturers in foreign countries, primarily in China and Vietnam.”

Sourcing a substantial portion of inventory from China and Vietnam, Build-A-Bear's COGS is directly exposed to US tariffs; trade policy is in flux, with the U.S. Supreme Court on Feb 20, 2026 striking down certain IEEPA tariffs and the administration signaling new measures.

“As a company that sources a substantial portion of our inventory from China and Vietnam, tariffs generally increase our cost of goods sold, which could adversely affect our profit margins. Global trade policy continues to evolve and the ultimate impact of recent developments with respect to U.S. tariffs is unclear. On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA").”