Baby products retailer Baby Bunting has reported strong sales growth amid the expansion of its store network in its latest trading update.

The company recorded a 3.5 per cent increase in total sales year-to-date as of October 12, with first-quarter gross profit margin up 30 basis points to 40.6 per cent year-on-year.

The brand’s comparable store sales grew 2.2 per cent in Australia and 13 per cent in New Zealand compared to the same period last year.

The company currently operates 77 stores, with two new large-format stores slated to open in NSW’s Dubbo and Westgate, New Zealand in the first half of this financial year.

​Baby Bunting opened its first two pilot stores of Baby Bunting Junior, in Robina, Queensland, and Victoria’s Plenty Valley, with a third to open at the end of this year’s first half.

For the full year, Baby Bunting expects a pro forma net profit after tax of between $17 million and $20 million and has plans to refurbish 11 to 12 stores.

The company expects to see a gross margin of 41 per cent, with a full-year comparable store sales growth of between 4 per cent and 6 per cent.