The Baby Bunting Group Ltd (ASX: BBN) share price is up 11% after reporting an update for FY27.
Baby Bunting is the largest specialist retailer of baby and toddler items such as prams, car seats, clothes, toys, blankets and so on.
FY27 update
The baby product retailer reported that after the first 14 weeks to 4 October 2026, its underlying comparable store sales growth in the year-to-date was 2.2%, reflecting “anticipated moderation from the impact of store refurbishment closures”.
Within that 2.2% figure, there was 2% growth in Australia and 8.7% growth in New Zealand. Not bad for a tough retail environment.
Baby Bunting reported that its ‘store of the future’ cumulative average sales growth is now 20%, showing the effectiveness of the refurbishments.
The ASX share is expecting to deliver between 10 to 12 refurbishments in FY27, with six to be completed in the first half.
Baby Bunting also said that it plans to open three new large format stores, with one opening in December and another two in the fourth quarter of FY27.
The ASX share also said that small format pilot stores continue to be monitored.
The company also noted that the gross profit margin is tracking to plan.
Profit outlook
Baby Bunting forecasts that its pro forma net profit after tax (NPAT) could be in the range of $19 million to $21 million.
That expectation is based on projections of total sales being between $585 million to $600 million, comparable store sales growth of between 3% to 5% and a gross profit margin of 42%.
But, the company is aware of the wider economic picture. It said:
In light of interest rate rises and cost-of-living pressures, we continue to closely monitor and react to trading conditions as we execute our plans for the key promotional periods during the balance of the year, including the important trading periods of November, Boxing Day and June Storktake.
[The] Outlook assumes no significant changes in economic and retail trading conditions, and no significant increases in sea and land freight expense.
Final thoughts on the Baby Bunting share price
The Baby Bunting share price is still down by more than 60% in the past year, so it could be cheap considering how well the ‘store of the future’ is performing.
Will it be impacted by lower consumer spending? Or are baby items quite a defensive category because they need to be bought? Time will tell.
It could be an opportunity, but it’s not one of the ASX growth shares I’d look to buy today.
