Baby Bunting Group (BBN) H1 2026 earnings summary

Executive summary

• Record half-year sales of $271.4 million, up 6.7% year-over-year, with gross margin reaching 41.0% and strong momentum in strategy execution.

• Comparable store sales grew 4.7%, exceeding guidance, and online sales rose 18% to represent 24.8–25% of total sales.

• Store of the Future refurbishments delivered up to 25% sales uplift, validating investment in store experience.

• Underlying pro forma NPAT rose 44% to $7.2 million, while statutory NPAT fell 52.5% to $1.85 million due to significant items.

• Store network transformation advanced with six refurbishments, two new large format stores, and three small format pilots.

Financial highlights

• Gross margin improved by 124 basis points to 41.0%, with gross profit up 10% to $111.4 million.

• Pro forma NPAT was $5.0 million, at the midpoint of guidance, and underlying NPAT (excluding significant items) was $7.2 million, up 44%.

• EBITDA margin (pre-AASB 16) was 5.4% of sales; underlying EBITDA margin was 6%.

• Cash conversion ratio was 70.9%, in line with historical averages.

• Net debt stood at $21.1 million, with strong banking covenant headroom.

Outlook and guidance

• 2H pro forma NPAT guidance reaffirmed at $12.5–$14.5 million; full-year pro forma NPAT expected at $17.5–$19.5 million.

• Full-year comparable store sales growth expected at 5%–7%, with gross margin above 41%.

• CapEx for FY 2026 now expected at $41–43 million, reflecting increased refurbishment activity.

• Continued acceleration in comparable store sales growth into 2H, with 6.7% growth in the first seven weeks.

• New store planned for Mentone (VIC) in February 2026.