Baby Bunting’s first-half performance demonstrated robust top-line growth, according to RBC Capital Markets analyst Jackie Moody. Comparable store sales increased by 4.7 per cent, surpassing previous guidance. Refurbished stores also contributed significantly, delivering a notable 25 per cent sales growth. Baby Bunting is a specialty retailer of baby goods, providing a wide range of products and services for new and expectant parents. The company operates both physical stores and an online platform.
Despite the positive sales figures, the company’s pro forma profit of $5 million fell short of market expectations by 5.4 per cent. Moody attributed this miss to one-off costs, including expenses related to store relocations and accelerated depreciation. Full-year net profit after tax (NPAT) guidance remains unchanged at $17.5 million to $19.5 million. However, capital expenditure (capex) has increased by 29 per cent, reaching $41 million to $43 million, despite no expansion in the store rollout plan.
Early indications for the second half of the fiscal year are promising. The first seven weeks of comparable sales in 2H26 have increased by 6.7 per cent, aligning with management’s projections. Baby Bunting continues to focus on optimising its store performance and managing costs to achieve its financial targets. Following this announcement, shares in Baby Bunting experienced a surge, last trading up by 12.3 per cent.
