BBW Build A Bear Workshop Inc

Build-a-Bear Workshop Inc. on Thursday logged its fifth straight increase in a key sales metric, though its revenue and profit fell well below Wall Street expectations.

Shares of Build-a-Bear, up 7.7% in the past year, tumbled 6.9% in premarket trading.

Build-a-Bear has logged improvement recently, fueled by sales of license products, after a string of disappointing results. Build-a-Bear allows customers to build their own stuffed animals, but the company has struggled as its novelty wore off.

For the period ended Oct. 3, Build-a-Bear's sales at comparable stores grew 2.1%, extending its streak of growth in the metric to five consecutive quarters. Growth was driven by an 8.9% increase in Europe same-store sales and a 0.2% uptick in North America.

In all, Build-a-Bear posted a profit of $1.07 million, or 6 cents a share, down from $1.82 million, or 10 cents a share, a year earlier.

Excluding certain items, per-share earnings were 10 cents. Analysts polled by Thomson Reuters had forecast 21 cents a share in earnings.

Revenue ticked down 1.2% to $85.6 million. Analysts had expected $89.2 million in revenue.

Retail gross margin expanded to 45.3% from 43.7% a year earlier.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

October 29, 2015 08:55 ET (12:55 GMT)

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