Record Growth Ahead
Baby Bunting Achieves Record FY26 Performance Driven by Strong Sales and Strategic Growth
Key Points
Exclusive and private-label ranges now account for more than half of Baby Bunting's total sales, helping support margin growth.
Baby Bunting signed an exclusive three-year brand partnership with Stokke, expanding premium brand collaborations.
FY26 online fulfilment was scaled to 100% from stores, with an in-store endless aisle deployed across all stores to access the full online range.
Store expansion and pilots: three large-format openings (Dubbo NSW, Westgate NZ, Tuggerah NSW) and three BabyBunting Junior small-format pilot stores (Marion SA, Plenty Valley VIC, Robina QLD) were launched in FY26.
Baby Bunting posted its best-ever financial year in FY26, with total sales hitting $556.0 million — up 6.5% — and a record gross margin of 41.2%, according to Small Caps. Pro forma net profit after tax jumped 33.9% to $16.1 million, making it a clean sweep of records across the retailer's key financial measures.
The result was driven by a shift toward exclusive and private-label products, strong online growth, and a store refurbishment program that is lifting sales at upgraded locations by around 18%, Proactive Investors reported.
Record Margin Driven by Exclusive and Private-Label Products
Baby Bunting's gross margin reached 41.2% in FY26, up 100 basis points from the prior year, according to Stocks Down Under. Exclusive and private-label ranges now make up more than half of all sales. That shift is the key reason margins keep climbing — the company makes more money on products it controls.
The retailer also signed a three-year exclusive brand deal with premium pram maker Stokke. That kind of partnership locks in differentiation rivals cannot easily copy. Kalkine noted that comparable store sales grew 3.5% for the year, showing the core business gained real traction beyond just new store openings.
Store Refurbishments Deliver an 18% Sales Uplift Per Location
Baby Bunting completed 12 "Store of the Future" refurbishments in FY26, bringing its total upgraded fleet to 15 stores. Upgraded locations are delivering about an 18% jump in sales compared to before the refit, Proactive Investors reported. The second half showed particular strength, with EBITDA margins running at 8.1% — well above the full-year 6.8% figure.
The company also opened three large-format stores — in Dubbo NSW, Westgate NZ, and Tuggerah NSW — and launched three BabyBunting Junior small-format pilot stores in Marion SA, Plenty Valley VIC, and Robina QLD. The pilots test whether a smaller store footprint can work in tighter suburban markets.
Online Sales and BabyBunting Media Add New Revenue Layers
Online sales grew 16.7% and now make up 25.3% of total revenue, according to Small Caps. Baby Bunting scaled online fulfilment to 100% from physical stores during FY26. It also rolled out an in-store "endless aisle" tool across all locations, letting shoppers access the full online range while standing in a store.
The company's retail media arm, BabyBuntingMedia, made a meaningful contribution to earnings. Retail media — where suppliers pay to advertise inside a retailer's own digital ecosystem — is a fast-growing, high-margin business model. Net debt stood at $16.2 million, with strong cash conversion leaving headroom for planned FY27 investment, Stocks Down Under noted.
No Dividend Paid, But FY27 Profit Guidance Points to Further Growth
Baby Bunting skipped its final dividend to preserve cash for growth investment. The move signals management is prioritising expansion over short-term payouts. FY27 pro forma NPAT guidance sits at $19–$21 million — implying growth of 18% to 30% from FY26's $16.1 million result, according to Proactive Investors.
New Zealand operations are moving toward profitability, adding another potential earnings driver. Analysts broadly rate the stock a Buy, pointing to momentum from refurbishments, exclusive products, and digital growth as reasons to stay optimistic despite a tough consumer spending environment, Kalkine reported.
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