Baby Bunting hits H1 record margins amid sales surge

Baby Bunting Group (ASX:BBN) delivered a robust set of first-half results for the 2026 financial year, characterised by record gross margins and a significant acceleration in sales momentum.

For the period ended Dec. 29, 2025, the specialty retailer reported total sales of $271.4 million, representing a 6.7% increase over the prior corresponding period.

The growth was underpinned by a stellar 4.7% rise in comparable store sales, comfortably exceeding the company’s previous guidance.

A primary driver of this performance was the group's "Store of the Future" refurbishment program.

Across nine upgraded locations, the company saw a 25% sales uplift, hitting the top end of its strategic targets.

CEO Mark Teperson noted that the speed of capital investment allowed these stores to trade through key sales events, supporting a payback period of less than three years.

The operational efficiency helped the group achieve a record gross margin of 41.0%, up 124 basis points.

On the bottom line, pro forma net profit after tax rose 4.1% to $5 million.

While statutory NPAT saw a decline to $1.8 million due to costs associated with network optimisation, the underlying NPAT—which excludes these significant items—rose by 44% to $7.2 million.

The company reported that sales momentum has continued into the second half, with the first seven weeks seeing comparable sales up 6.7%.

Baby Bunting has maintained its H2 guidance and now projects a full-year pro forma NPAT between $17.5 million and $19.5 million.