Baby Bunting Group Limited (ASX:BBN) Reports Sales Growth and Opens New Store
Financial Performance
As at 27 April 2025, Baby Bunting reported year-to-date comparable store sales growth of 2.9% and a gross margin of 40%, up from 36.8% in FY24. For the second half of FY25, comparable store sales were up 3.7%.
Operational Achievements
Baby Bunting has opened its new “Store of the Future” in Maribyrnong, Melbourne. The refurbished 2,000-square-metre store features an innovative activity-led format aimed at enhancing the shopping experience and driving sales growth across all product categories.
FY25 Outlook
The Group has increased its FY25 pro forma NPAT guidance to $10m to $12.5m from the previous range of $9.5m to $12.5m. Capital expenditure is expected to be between $11m and $12m, funded through operating cash flow, with a focus on brand awareness and employee incentives.
Executive Comments
CEO Mark Teperson stated, “Our Store of the Future format is the physical manifestation of our strategy, delivering an elevated experience for new and expectant parents while strengthening our leadership in specialty baby retail. While the store only re-opened 10 days ago, the initial feedback from customers has been very positive. It’s performing above expectations on sales and margin, with excellent growth across all product categories. We’ll be monitoring performance over the coming months to get a better read on the longer-term trends of this updated design. We’re excited for this format to set the blueprint for future store developments and refurbishments across our network.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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