A LETTER FROM OUR CEO Dear Shareholders,

2022 was a landmark year for Build-A-Bear. We completed our two-year turnaround, laid out a path for the future with a new growth strategy and ended the year with record-high revenue. We are now ready to write a new chapter in the story of Build-A-Bear.

We now have a high-performing on-line business, our product portfolio is slimmer and more productive, we have increased the use of data and analyses across the business, and our organization is stronger, flatter and faster.

Build-A-Bear is now ready to embark on the next chapter: a chapter of growth. Our new strategy is designed to drive sustainable top and bottom-line growth by leveraging our key assets: strong brand awareness, a global distribution network and industry-leading manufacturing capabilities.

We see significant, untapped growth potential within our core business. We have defined four pillars that will be driving our growth. The pillars are rooted in a deep understanding of who we want to interact with, what matters to them and then developing inspiring solutions for all touch-points.

We have set an ambitious plan for our company. We want Build-A-Bear to become the largest and most desirable brand in the affordable jewelry market. And we want to lead on sustainability in our industry to become a low-carbon and circular business that is also inclusive, diverse and fair.

We are proud of our achievements in 2022 – not least considering the challenging circumstances during the pandemic – and would like to thank all Build-ABear’s employees or their commitment. Our combined efforts have changed the company’s course and positioned us well as we enter this new chapter of growth. We would also like to thank our loyal customers and shareholders for their continued trust in Build-A-Bear.

Sincerely,

Sharon John President and Chief Executive Officer