The lower second quarter profit included an operating loss from its UK operations and stock-options expenses.
The company reported second-quarter net income of $1.6 million, or eight cents a share, compared with $3m, or 15 in the year-ago period. Total revenue rose 7.2 percent to $100.4 million.
Analysts on average expected the company to earn eights cents a share, including stock-compensation expenses but before other exceptional items, on revenue of $104.3 million.
"Our new store openings this quarter, including our first stores in Alaska, Montana and Puerto Rico, continue to drive our retail sales growth," Maxine Clark, chairman and CEO, said in a statement. "New stores in particular are an important driver of our overall profitability, while our older stores continue to contribute to our earnings."
Comparable store sales in North America declined 9.4 percent in the recent quarter, compared to a decline of 4.4 percent in the second quarter last year.
Net retail sales growth was driven by new stores opened during the past 12 months in North America, an increase in sales from its UK operations of $3.5 million and an increase in Internet sales of 8.6 per cent to $1.8 million.
Sales from UK operations hit $11 million in the second quarter, up 46 per cent from $7.5 million in the second quarter of last year.
During the second quarter, the company opened 15 new stores in North America and one new store in the UK. Build-A-Bear ended the second quarter with 252 stores in North America and 41 in the UK and Ireland.