Key Highlights

  • Baby Bunting (ASX:BBN) recorded FY26 total sales of $556.0 million, representing 6.5% growth from FY25, while comparable store sales increased 3.5%.
  • Pro forma NPAT rose 33.9% to $16.1 million, while statutory NPAT increased 17.5% to $11.2 million.
  • Gross Margin reached a record 41.2%, up 100 basis points, with exclusive and private-label products accounting for more than half of total sales.
  • The company plans 10-12 store refurbishments and three new large-format stores in FY27, while guiding to pro forma NPAT of $19 million-$21 million.

Baby Bunting (ASX:BBN) delivered record sales and higher Earnings in FY26, with total Revenue reaching $556.0 million, an increase of 6.5% from the previous corresponding period. Comparable store sales increased 3.5%, while the group also benefited from four new large-format stores and three Baby Bunting Junior locations opened during the year.

Pro forma net profit after tax increased 33.9% to $16.1 million from $12.1 million in FY25. Statutory NPAT rose 17.5% to $11.2 million from $9.5 million. The earnings result came as the company managed a retail environment affected by higher interest rates and elevated fuel costs, which weighed on consumer spending in parts of the second half.

The company reported that second-half NPAT increased 54%, providing a significant contribution to the full-year result despite the more difficult consumer backdrop.

Gross Margin Reaches a Record Level

Gross profit increased 9.3% to $229.2 million, while gross margin expanded by 100 basis points to 41.2%. The increase was associated with the continued expansion of exclusive and private-label ranges, which now account for more than half of total sales.

Baby Bunting also generated $5.8 million in revenue through BabyBuntingMedia, its retail media operation. The Business provides an additional revenue stream alongside product sales and forms part of the company's broader strategy of increasing income generated from its customer base and retail network.

Cost of doing business increased to $191.6 million during FY26, equivalent to 34.5% of sales. This represented a 30-basis-point improvement compared with the prior year, despite additional store expenses, wage Inflation and Marketing costs connected with store launches and refurbishments.

Store Refurbishments and Digital Sales

The Store of the Future program continued during FY26, with 12 refurbishments completed during the year and the refurbished fleet reaching 15 stores. These locations recorded an 18% sales increase following their reopening, with the company reporting a payback period of less than three years.

Online sales also continued to expand, increasing 16.7% during FY26 to represent 25.3% of total sales, compared with 23.1% in FY25. The group reported more than 860,000 active customers within its Baby Bunting family, while the higher-margin softgoods category increased sales by 12.9%.

The company also entered an exclusive three-year Partnership with Stokke, adding another premium children's Brand to its exclusive product offering.

FY27 Expansion and Trading Update

Baby Bunting plans to undertake 10-12 store refurbishments during FY27, including five to six during the first half. The company is targeting refurbishment periods of approximately 10-12 weeks per store, with sales redirection identified as an operating consideration during the work.

The group also plans to open three new large-format stores, including one committed opening in the first half and two targeted for late in the fourth quarter.

Trading during the first six weeks of FY27 showed total sales growth of 6.1% and comparable store sales growth of 4.3%. Australian comparable store sales increased 3.9%, while New Zealand comparable store sales rose 15.0%.

Balance Sheet and FY27 Outlook

Net Debt stood at $16.2 million at 28 June 2026, with the company reporting more than $60 million of funding headroom. The Board determined that no final Dividend would be paid, with Capital directed toward supporting the group's growth program.

For FY27, Baby Bunting expects pro forma NPAT of $19 million to $21 million, based on total sales of $585 million to $600 million, comparable store sales growth of 3% to 5% and a gross margin of 42%. Capital Expenditure is expected to be between $33 million and $37 million and is planned to be funded through operating cash flow.

Conclusion

Baby Bunting's FY26 results show a year of increased sales, higher earnings and record gross margin, supported by store expansion, refurbished locations, digital sales and the continued development of exclusive and private-label products. The company enters FY27 with additional refurbishments and new stores planned, alongside reported early-year sales growth in both Australia and New Zealand. Its stated FY27 targets provide a framework for the next stage of the group's store network, margin and earnings development.