• Comparable store sales growth up 2.9% YTD
• New 'Store of the Future' format opens in Maribyrnong, Melbourne
• FY25 NPAT guidance increased to $10m - $12.5m

Baby Bunting Group Limited (Baby Bunting or the Group) has hosted a site visit for investors and analysts at its new 'Store of the Future' in Maribyrnong, Melbourne. The existing Maribyrnong store has been refurbished with an innovative activity-led format, designed to better present product categories and elevate the in-store shopping experience to drive basket size and visitation, as well as maximise retail assets to showcase brands and drive retail media opportunities. According to Baby Bunting's CEO, Mark Teperson, the new store format is the physical manifestation of the company's strategy, delivering an elevated experience for new and expectant parents while strengthening its leadership in specialty baby retail. While the store only re-opened 10 days ago, the initial feedback from customers has been very positive, with the store performing above expectations on sales and margin, and excellent growth across all product categories.In a trading update, Baby Bunting reported that as at 27 April 2025, 2H FY25 comparable store sales were up 3.7% and year-to-date comparable store sales were up 2.9%. The company also reported that year-to-date gross margin is 40% (FY24: 36.8%), reflecting progress against its strategy, with improved sales momentum supported by new product ranges, optimised pricing, and targeted marketing.Baby Bunting has increased the lower end of its FY25 pro forma NPAT guidance and now expects it to be in the range of $10m to $12.5m (previously $9.5m to $12.5m). The company notes that a significant proportion of 2H sales are attributable to the final 6 weeks of the financial year, and accordingly the FY25 result will be influenced by the performance of this key trading period.

Baby Bunting expects FY25 pro forma NPAT to be in the range of $10m to $12.5m, based on the following assumptions: FY25 comparable store sales growth of 2% to 3%, gross margin of 40%, and anticipated FY25 cost of doing business increases plus additional 2H costs, including investment in NZ brand awareness and provisions for employee short-term incentive program. Capital expenditure of $11m to $12m is expected, to be fully funded through operating cash flow.