Baby Bunting Group (BBN) H2 2025 earnings summary

Executive summary

• Achieved record sales of $522 million, up 4.7% year-over-year, and record gross margin, exceeding 40% target with a 340 basis point uplift versus prior period.

• Proforma NPAT reached $12.1 million, up 228% year-over-year, at the top end of guidance; statutory NPAT up 462% to $9.5 million.

• Store of the Future refurbishments delivered an average 28% sales uplift and 40 basis points higher gross margin than peers.

• Online sales grew 10.8% year-over-year, now 23.1% of total sales, driven by new delivery options and improved checkout.

• Net debt reduced to $4.6 million from $30 million prior year, reflecting strong cash flow and disciplined capital management.

Financial highlights

• Comparable store sales grew 4.2%, accelerating from 2.2% in H1 to 6.2% in H2.

• Pre-AASB 16 EBITDA increased to $28.2 million, 5.4% of sales, up 76.9% year-over-year.

• Operating cash flow reached $51.9 million, up $11.8 million year-over-year.

• Private label and exclusive products accounted for 47.1% of total sales, up 110 basis points.

• Basic statutory EPS was 7.1 cents, up from 1.3 cents in the prior year.

Outlook and guidance

• FY 2026 proforma NPAT guidance: $17 million–$20 million.

• Full-year comparable store sales growth expected at 4%–6%, with H1 impacted by refurbishments and H2 targeted at 6%–8%.

• Targeting gross margin of 41% and CODB leverage of 30 basis points.

• CapEx of $30–$35 million, fully funded from operating cash flow.

• Plans for up to 12 store refurbishments and five new large format and up to five small format pilot stores in FY 2026.