Baby Bunting FY26 Pro Forma NPAT $16.1m, Up 33.9%

Baby Bunting (ASX:BBN) Group reported pro forma net profit after tax of $16.1 million for the year ended 28 June 2026, up 33.9% from $12.1 million in the prior corresponding period, and statutory net profit after tax of $11.2 million, up 17.5% from $9.5 million. The company said pro forma results exclude employee equity incentive expenses and certain transformation project expenses. Chief Executive Officer Mark Teperson said rising interest rates and elevated fuel prices weighed on consumer spending through the second half, impacting some higher-priced prams and car safety categories, and that the group delivered NPAT growth of 54% in the second half. Total sales were a record $556.0 million, up 6.5%, with comparable store sales growth of 3.5%. Gross profit was $229.2 million, up 9.3%, and gross profit margin rose 100 basis points to a record 41.2%, which the company attributed to continued growth in exclusive and private label ranges, now more than half of total sales, and to BabyBuntingMedia, which contributed $5.8 million in revenue. The company also said it signed an exclusive three-year partnership with Stokke. Online sales grew 16.7% to represent 25.3% of total sales, from 23.1% in FY25. Cost of doing business increased to $191.6 million, or 34.5% of sales, a 30 basis point improvement on the prior year. Inventory closed at $99.2 million, from $95.6 million. Net debt was $16.2 million at 28 June 2026 with more than $60 million of funding headroom, and the Board determined no final dividend will be paid, to support ongoing funding of the group's growth strategy.

The group opened four large format stores and three Baby Bunting Junior small format stores during the year and completed 12 Store of the Future refurbishments, taking the refurbished fleet to 15 stores; the company said refurbished stores delivered 18% sales growth in FY26 since re-opening, maintaining a payback of under three years. In FY27 Baby Bunting plans 10 to 12 refurbishments, with 5 to 6 expected in the first half, and three new large format stores. Sales in the first six weeks of trade to 9 August were up 6.1% in total, with comparable store sales up 4.3%, comprising Australian comparable store sales growth of 3.9% against a prior period of 3.7% and New Zealand growth of 15.0% against 13.9%. The company said comparable store sales growth is expected to moderate, reflecting the ramp-up of the first half refurbishment program, and to normalise once those stores re-open. FY27 pro forma net profit after tax is expected to be $19.0 million to $21.0 million, split approximately one-third to two-thirds across the year, assuming total sales of $585 million to $600 million, comparable store sales growth of 3% to 5%, gross margin of 42% and capital expenditure of $33 million to $37 million funded through operating cash flow. The outlook assumes no significant changes in economic and retail trading conditions and no significant increases in sea freight expense.