Baby Bunting Group (BBN) Trading update summary

Financial performance

• Pro forma NPAT for FY26 expected between $16.0m and $17.0m, up 32% to 40% year-on-year.

• Total sales projected at $553m to $555m, representing a 6% increase over the prior year.

• Gross margin will exceed 41% for FY26, with 2H margin around 41.5%.

• Net debt anticipated to finish at approximately $20 million.

Sales and operational highlights

• Comparable store sales growth of about 3.5% for the year, with 2H growth at 3%, below previous guidance.

• Store of the Future program delivered 18% sales growth for the year and 16% in 2H.

• Online sales grew by approximately 16% for FY26.

• New Zealand sales growth in 2H exceeded 15%.

Strategic and market context

• Softer trading in Q4 attributed to RBA rate rises and higher fuel prices impacting consumer spending.

• Non-refurbished stores underperformed, especially in prams and car safety categories.

• Continued focus on gross margin improvement, product pipeline, and disciplined cost management.

• Two of the largest store openings occurred in June.