Build-A-Bear Workshop gets torn down

Build-A-Bear Workshop Inc., of St. Louis dropped an appalling 23% on Friday due to lower earning guidance. Originally BBW was projecting 15 and 19 cents, but has now revised that to 7 and 10 cents per share. This now brings the full-year earnings to $1.55 and $1.65 from $1.65 and $1.75.

With that being said, is that a legitimate reason to drop the shares 23.3%? I realize there are some concerns about the UK acquisition that has yet to turn a profit, high inventory levels, and the forecasted declining same store sales, but a 23% drop is somewhat extreme.

Please keep in mind that Build-A-Bear has grown to over 300 stores across the UK and Europe in just 10 short years and is an active investor in a new build / customize a car concept store called Ridemakerz. I suggest you pick this one up while its cheap. Don’t expect shares to bottom out here, but this is an opportunity to pick up a long term winner experiencing short term weakness.