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Baby Bunting lifts profit and margins despite late-quarter sales softness

Baby Bunting lifts profit and margins despite late-quarter sales softness
Story Highlights
  • Baby Bunting forecasts FY26 profit up as much as 40%, with higher margins, modest sales growth and strong online and New Zealand performance supporting results.
  • Softer fourth-quarter trading and weaker pram and car safety sales hit guidance, but the Store of the Future rollout drives double-digit refurbished store growth and underpins strategy.
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Baby Bunting Group Ltd. ( (AU:BBN) ) has provided an announcement.

Baby Bunting Group expects FY26 pro forma NPAT of $16.0 million to $17.0 million, up 32% to 40% on the prior year, on total sales of about $553 million to $555 million, roughly 6% higher. The retailer is set to lift gross margins above 41% and deliver online sales growth of about 16%, supported by strong performance in New Zealand and disciplined cost and capital management.

The company warned that softer fourth-quarter trading and weaker sales in prams and car safety categories meant second-half NPAT will fall short of earlier guidance, with comparable store sales growth of around 3% versus a 6% to 8% target. However, its Store of the Future program remains a key growth engine, with refurbished stores delivering about 18% sales growth for the year and helping underpin confidence in the strategy as Baby Bunting eyes continued execution into FY27.

The most recent analyst rating on (AU:BBN) stock is a Buy
with a A$3.30 price target.
To see the full list of analyst forecasts on Baby Bunting Group Ltd. stock,
see the AU:BBN Stock Forecast page.

More about Baby Bunting Group Ltd.

Baby Bunting Group Limited is a specialty retailer focused on baby and parenting products, operating a network of stores and an online channel across Australia and New Zealand. The company targets expectant and new parents with categories such as prams, car safety, and nursery essentials, and is investing in a Store of the Future format and digital capabilities to drive growth.

Average Trading Volume: 213,388

Technical Sentiment Signal: Sell

Current Market Cap: A$226.8M

Find detailed analytics on BBN stock on TipRanks’ Stock Analysis page.

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