Baby Bunting is targeting a bigger slice of Australia’s $3.4 billion baby soft goods market, after sales in the category grew 12.9 per cent in FY26.
The specialty retailer outlined the push at its annual general meeting today. Chair Stephen Roche told shareholders the business sees soft goods as a key growth opportunity alongside its core hard goods offer.
“In the complementary $3.4 billion soft goods market, our sales grew 12.9 per cent in FY26, and we see significant room to win further share,” Roche said.
“Importantly, each additional percentage point of soft goods market share represents around $34 million of revenue.”
The company already holds about 23 per cent of the hard goods market, according to Roche, and is the leading specialty baby retailer across Australia and New Zealand.
CEO Mark Teperson said product range is central to how the retailer plans to grow share. Private label and exclusive products now make up more than half of sales, and the company aims to lift that to around 60 per cent.
“Parents come to us for brands they trust and products they cannot find anywhere else,” Teperson said.
Baby Bunting added Stokke to its exclusive brand partnerships in FY26, alongside Nuna, Joie, Edwards & Co and, in New Zealand, Bugaboo. More exclusive launches are planned for FY27.
Baby Bunting also released a Q1 trading update. Underlying comparable store sales grew 2.2 per cent in FY27 to October 4, down from 4.3 per cent at week six. Australia grew 2 per cent and New Zealand 8.7 per cent on a constant currency basis.
The company said the slowdown was expected, with seven stores closed for refurbishment during the period. The underlying figure excludes those stores and the nearby stores that picked up redirected sales.
“Comparable store sales growth is expected to moderate in the first half while our refurbishment program ramps up, and to normalise as those stores reopen,” Roche said.
Refurbished Store of the Future sites are delivering average sales growth of 20 per cent in their first year after reopening, across 17 stores. The retailer plans 10 to 12 more refurbishments in FY27.
Baby Bunting reaffirmed FY27 guidance of pro forma NPAT between $19 million and $21 million, on total sales of $585 million to $600 million. It also flagged caution ahead of its key trading periods.
“In light of interest rate rises and cost-of-living pressures, we continue to closely monitor and react to trading conditions as we execute our plans for the key promotional periods during the balance of the year,” Teperson said.