Build-A-Bear Workshop has revised its annual sales forecast downward for the second time this year, now projecting $500 million to $525 million in revenue, down from previous guidance of $530 million to $550 million. The St. Louis-based company reported second-quarter sales of $115.3 million, a 7% decline that fell short of analyst expectations of $120.8 million. Revenue challenges persisted despite a modest increase in adjusted per-share earnings to 70 cents, which beat the 65-cent forecast.

The company also reduced its pre-tax income guidance to $60 million to $68 million from $72 million to $78 million. Separately, Build-A-Bear announced the termination of Chief Growth Officer David Henderson without cause, effective Wednesday. The company is paying Henderson at least $532,224 in connection with his departure.

His exit follows the June resignation of longtime CEO Sharon Price John. Henderson had served as chief revenue officer before assuming his current role alongside the appointment of new CEO Chris Hurt. The challenges stem from an uncertain economic environment that has slowed store traffic.

The company anticipates $10 million to $11 million in tariff costs for the year and expects $13 million in tariff refunds.