Baby Bunting FY26 profit jumps 34% on record margins

Australian baby and nursery products retailer Baby Bunting reported a 34% year-over-year increase in net profit for the fiscal year ended June 2026, driven by record-high margins despite softer sales volumes.

The company’s full-year results, released on Wednesday, showed net profit after tax rising to A$68.2 million from A$50.9 million in FY25. Operating margins expanded to 12.1%, up from 9.3% in the prior year, as cost efficiencies and pricing strategies offset competitive pricing pressures in the sector.

Revenue for the year declined 2.1% to A$745.6 million, reflecting weaker discretionary spending among Australian households amid elevated living costs. Same-store sales fell 3.4%, though the company noted resilience in its core baby and nursery categories.

Baby Bunting’s board declared a final dividend of 11 cents per share, bringing the full-year payout to 22 cents, a 29% increase from FY25. The dividend is payable on September 12 to shareholders on record as of August 29.

Chief Executive Officer Mark Webb attributed the margin improvement to disciplined inventory management and targeted cost reductions, while acknowledging that volume trends remained subdued. The company maintained its full-year guidance for FY27, citing expectations of gradual demand recovery.

Shares in Baby Bunting were 2.3% higher at A$3.55 in mid-morning trading on Wednesday, outperforming the broader S&P/ASX 200 index.