Baby Bunting continues to weather external headwinds, with the specialty childcare retailer expecting momentum to continue through the end of the year’s key trading period.

The company told investors about its early fiscal 2027 performance in an ASX filing ahead of its annual meeting and following a strong fiscal 2026.

This strategy has centred on refurbishing its store network in Australia and New Zealand. Baby Bunting spent $44.5 million on its ‘Store of the Future’ program in 2026, with aims to refurbish and open 120 stores in Australia and New Zealand by the end of the strategy.

Baby Bunting has entered fiscal 2027 with seven stores in its network closed for refurbishment. From August 15 to October 4, the retailer grew sales in Australia by 2 per cent and in New Zealand by 8.7 per cent.

The cumulative sales growth of its ‘Store of the Future’ locations now stands at 20 per cent, Baby Bunting added.

“The new format moves our stores from a category-led layout to an activity-led layout, designed around how parents actually shop, and the results speak for themselves,” CEO Mark Teperson said.

“As trading softened and our non-refurbished stores fell behind plan, our refurbished stores kept trading well.”

As the year-end approaches, Teperson said the company is carefully monitoring rising interest rates and cost-of-living pressures. 

“Our strategy is clear, we are executing it with discipline, and it is delivering results. We are on track to re-establish Baby Bunting as a business with an EBITDA margin above 10 per cent, and we have the platform in place to deliver sustainable growth for our shareholders,” he added.

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