Build a Bear Workshop is to open 25 news stores, including five in Europe.
The firm said it expects to open 20 stores in the US in 2008, with five new outlets opening in Ireland, France and the UK.
In 2007, the company opened 35 new stores in the U.S., and 11 new stores in Ireland, France and the UK. The company said it was slowing store growth because of "near-term challenges in the retail environment."
Shares of Build-A-Bear, a children's toy retailer, fell 2 cents to $10.89 on Thursday. The stock is down about 63% over the past 52 weeks.