• Revenue grew 4.7% to $521.9m, with comparable store sales up 4.2%
• Pro forma NPAT increased 228% to $12.1m
• Gross margin expanded 340bps to 40.2%

Baby Bunting Group Ltd has reported a transformational year in FY2025, delivering strong financial results and executing on its growth strategy. Revenue grew 4.7% to $521.9 million, with comparable store sales increasing 4.2%. The company's pro forma net profit after tax (NPAT) surged 228% to $12.1 million, reflecting the early success of its strategic initiatives. Gross margin expanded 340 basis points to 40.2%, exceeding the company's target. These results were achieved despite a challenging retail environment marked by elevated cost-of-living pressures. The Board has overseen the implementation of the Store of the Future program, with the successful launch of the updated large format store design in Maribyrnong, Preston, and Gepps Cross. These refurbished stores are performing above expectations on both sales and margin, with positive customer feedback. The Board has approved a disciplined rollout plan of up to twelve store refurbishments for the coming year, targeting comparable store sales growth of 15-25%. The company also has plans for five new stores in FY2026, including the new small format 'Baby Bunting Junior' stores. Investments in the company's digital and loyalty platforms are deepening customer relationships and increasing lifetime value, providing multiple avenues for growth. The Board has also welcomed Debra Singh as an independent Non-Executive Director and Chair of the Remuneration Committee, strengthening the Board's capabilities. Baby Bunting remains committed to building a sustainable and responsible business, with progress made on initiatives such as the car seat recycling program and community partnerships.

Baby Bunting is targeting a disciplined rollout plan of up to twelve store refurbishments for the coming year, with a focus on comparable store sales growth of 15-25%. The company also has plans for five new stores in FY2026, including the new small format 'Baby Bunting Junior' stores.

Looking ahead, Baby Bunting has an exciting opportunity to extend its market leadership, with a clear plan to expand the network. With a strong team and financial foundations in place, this provides a clear roadmap for delivering compound growth and superior returns to shareholders.