Specialty childcare retailer Baby Bunting has lifted its profits through a year in which it has cautioned investors about Australia’s challenging retail environment.

Now operating 80 stores in Australia and New Zealand – with plans to grow that number to 110 – Baby Bunting spent fiscal 2026 recording $556 million in sales, a 6.5 per cent increase on 2025.

One quarter of this figure was made up by online sales, leading to a groupwide statutory after-tax profit of $11.2 million, a 17.5 per cent uplift in a year.

This growth came at a cost; Baby Bunting added $11.7 million, or 260 per cent, to its net debt. Heavy capital expenditure of $44.5 million as part of its ongoing store network transformation contributed to this, with 19 store projects undertaken in the fiscal year.

Baby Bunting’s chair, Stephen Roche, and CEO, Mark Teperson, said the expense was necessary due to its store network being “central” to future growth.

“These results show that our strategy is working,” the two said in a letter to shareholders. “Two stores we re-opened late in the year delivered record opening-week sales, further validating the format.” 

“While the non-refurbished network fell behind plan over the final seven weeks, our refurbished stores continued to trade well, which reflects the strength and resilience of the refurbishment program.”

The company said it expects its “proven strategy” to carry positive momentum through fiscal 2027. But it cited an uncertain consumer environment and macroeconomic conditions

“Our foundations are sound, our category is resilient, and we have the right team and plan in place to execute well in the areas within our control,” the leadership team said.