Projections at Baby Bunting show the baby goods retailer reporting a double-digit uplift in its pro-forma net profit after tax (NPAT) and a modest lift in total sales for the full-year FY26.
Baby Bunting – which sells a decent range of babywear and soft goods, as well as a larger range of hard goods like prams and cots – expects its NPAT to hit between $16 million and $17 million, with total sales projected to rise by around 6 per cent to around $553 million and $555 million. Comparable store sales growth should lift by around 3.5 per cent.
This modest uplift in trading at Baby Bunting comes as the overall fashion and retail industry see mixed results in performance, with some experts claiming the mid-priced market is facing harsher conditions compared to low-price and luxury counterparts.
Despite this decent growth at Baby Bunting for the full financial year, CEO Mark Teperson pointed out that trading had softened for the baby goods retailer in the fourth quarter.
However, he added that delivering pro forma NPAT growth of 32 per cent to 40 per cent for the full year, alongside a gross margin increase from 40.2 per cent to above 41 per cent, is a strong result in a difficult consumer environment. In the second half, gross margin was 41.5 per cent.
“The three RBA cash rate rises in the second half, together with higher fuel prices, weighed on consumer spending and added to our distribution costs,” Teperson said.
“Sales across our non-refurbished store network did not meet plan over the last seven weeks, driven by softness in prams and car safety categories relative to expectations, which lowered average transaction values.”
Meanwhile, Teperson said Baby Bunting’s Store of the Future program is performing in line with expectation, reporting an approximate 18 per cent uplift in sales for the full year, which moderated slightly to 16 per cent lift in the second half.
“We have held gross margins above 41 per cent, driven double-digit growth in our online channel [up ~16 per cent] and built strong momentum in New Zealand with sales growth in second half above 15 per cent, all while maintaining disciplined cost and capital management and a strong balance sheet.
“The fundamentals of the business and the strategy we are executing remain strong. We have a great new product pipeline in car safety, clear gross margin levers and a refurbishment program that continues to deliver.
“We look forward to continuing to execute and drive value for our customers and shareholders through FY27.”
The company also reported that group costs and capex investment remain in line with expectations and net debt is expected to finish at approximately $20 million.
Baby Bunting will release its full year results on Friday, August 14, 2026.