The company reported a net loss of $2 million, or 11 cents a share, for the quarter, compared with a net profit of $3 million, or 15 cents a share, a year ago.
The quarter included a $1.7 million charge for closing down the Friends 2B business .
Excluding charges from the closing business, Build-A-Bear would have posted a loss of about $300,000, or two cents per share.
Analysts, on average, expected the company to earn 2 cents a share, before special items, on revenue of $110.2 million, according to Reuters Estimates.
Revenue fell about 2 per cent to $107.2 million and same-store sales fell 11.6 per cent for the period.
The retailer, which lets customers make their own stuffed animals, said it expects to incur pretax charges of about $1.9 million to $2.3 million over the next fiscal year.