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 comparable store sales up 4.7% and online sales growing 18% to represent 24.8%-25% of total sales.

• Gross margin reached a record 41.0%, up 124 basis points year-over-year, with gross profit up 10% to $111.4 million.

• Underlying NPAT rose 44% to $7.2 million, while pro forma NPAT increased 4.1% to $5.0 million; statutory NPAT declined 52.5% to $1.85 million due to significant items.

• Store of the Future refurbishments delivered up to 25% sales uplift, with six refurbishments and two new large format stores completed.

• No interim dividend declared, reflecting a focus on growth investments and balance sheet management.

Financial highlights

• Gross margin improved to 41.0% (up 124 bps), with gross profit at $111.4 million.

• Pro forma NPAT was $5.0 million, underlying NPAT $7.2 million (up 44%), and EBITDA margin 5.4%-6% of sales.

• Cost of doing business rose to 35.7% of sales, driven by new store openings, wage inflation, and refurbishment costs.

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

• Net debt stood at $21.1 million, up from $9.1 million year-over-year, with strong covenant headroom.

Outlook and guidance

• 2H FY26 pro forma NPAT guidance maintained at $12.5–$14.5 million; full-year pro forma NPAT expected at $17.5–$19.5 million.

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

• CapEx for FY26 forecasted at $41–$43 million, reflecting increased refurbishment activity.

• Retail Media business expected to contribute incremental gross margin and revenue.

• Outlook assumes stable economic and retail trading conditions.