The Baby Bunting Group Ltd (ASX: BBN) share price is in focus today after the company reported a 33.9% rise in pro forma net profit after tax (NPAT) to $16.1 million on record total sales of $556 million for FY26.
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What did Baby Bunting report?
- Pro forma NPAT up 33.9% to $16.1 million versus FY25
- Record total sales of $556.0 million, up 6.5% year on year
- Comparable store sales growth of 3.5%
- Gross profit margin expanded by 100 basis points to a record 41.2%
- Online sales up 16.7%, now 25.3% of total sales
- Net debt of $16.2 million with more than $60 million funding headroom
What else do investors need to know?
Baby Bunting's "Store of the Future" refurbishment program delivered a sales uplift of 18%, with 12 refurbishments completed in FY26 and a payback period of under three years. The company continues to grow its exclusive and private label ranges, now making up more than half of total sales, supporting gross margin expansion.
The retailer saw online sales growth of 16.7%, and now online sales account for more than a quarter of total revenue. Baby Bunting also signed an exclusive three-year partnership with global children's brand Stokke, further differentiating its range.
A disciplined approach to capital management was maintained, with net debt finishing at $16.2 million and ample funding headroom. However, no final dividend will be paid for FY26 as the company prioritises reinvestment and growth.
What did Baby Bunting management say?
Baby Bunting CEO Mark Teperson said:
FY26 was a year of disciplined execution against our strategic plan, delivering pro forma NPAT growth of 33.9% on record total sales of $556.0 million, up 6.5% on the prior year. Rising interest rates and elevated fuel prices weighed on consumer spending through the second half, impacting some higher-priced prams and car safety categories. However, even in this more challenging consumer environment we delivered NPAT growth of 54% in the second half, reflecting the underlying strength of the business.
What's next for Baby Bunting?
Looking ahead, Baby Bunting plans 10–12 further store refurbishments in FY27, with five to six set for the first half, and aims to open three more large-format stores. The New Zealand business is on track to break even in FY27, which the company says supports its international ambitions.
Management expects FY27 pro forma NPAT in the range of $19 million to $21 million with total sales between $585 million and $600 million, underpinned by growth in its exclusive ranges and omni-channel model. Gross margin is targeted at 42%, with continued controlled investment.
Baby Bunting share price snapshot
Over the past 12 months, Baby Bunting shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.
