• Total sales growth of 3.5% and comparable store sales growth of 2.2% year-to-date
• Gross profit margin of 40.6% in Q1 FY26, up 30 bps
• New Zealand comparable store sales up 13% year-to-date

Baby Bunting Group Ltd has provided a trading update for the first quarter of FY26, reaffirming its FY26 earnings guidance. The company reported total sales growth of 3.5% and comparable store sales growth of 2.2% year-to-date, with comparable store sales in New Zealand up 13% year-to-date. Gross profit margin in Q1 FY26 was 40.6%, up 30 basis points compared to the prior period. The company's Store of the Future refurbishment program continues, with 11-12 refurbishments planned for FY26, including 6 in the first half. The company also provided an update on its small format 'Baby Bunting Junior' stores, with the first two pilot stores opening in the last month and receiving a strong initial customer response. Overall, the company remains confident in its strategy and is reaffirming its FY26 earnings guidance, with pro forma NPAT expected to be in the range of $17.0 million to $20.0 million.

FY26 pro forma NPAT is expected to be in the range of $17.0 million to $20.0 million, assuming full year comparable store sales growth of 4%-6%, gross margin of 41%, and CODB leverage of ~30 bps.

The company sees a clear pathway to potentially adding up to 80 new stores, including large and small format stores, combined with its ongoing refurbishment program and strategic initiatives, providing a clear pathway to achieving its target of returning to a +10% EBITDA margin business.