Australia's biggest specialist baby goods retailer lifted sales for the six months to December 29 by 6.7 per cent to $271.4 million.
Net profit rose 4.1 per cent to $5 million, compared to the previous corresponding half-year.
Same-store sales rose 4.7 per cent, beating guidance of two to three per cent comparable sales growth, while sales at Baby Bunting's nine "stores of the future" grew 25 per cent, and at the top end of guidance.
That momentum has continued into the second half, with same-store sales up 6.7 per cent in the seven weeks to Sunday.
Chief executive Mark Teperson said it was a strong result that exceeded expectations across multiple metrics and demonstrated strong momentum in its strategy.
"Our record revenue result was driven by growth in our customer base, the continued success of our store of the future program, along with strong gross margin performance," he said.
Baby Bunting's "stores of the future" feature experience hubs where parents can engage, learn and shop, along with showcases for Baby Bunting's partner brands.
They also feature spaces like a "whimsical glass bottle canopy" designed to spark a sense of wonder, and calming spaces meant to evoke a friend's kitchen.
Six more Baby Bunting stores were refurbished and converted to the future format during the half, after three stores pioneered the concept in 2024/25.
Baby Bunting also opened three small-format stores in the last few months of 2025, at shopping malls on the Gold Coast and in suburbs of Melbourne and Adelaide, but they have not done quite so well.
Mr Teperson said one of those BabyBunting Junior stores was performing to target while two were slightly behind.
"We are large-format destination retailers," he said in a conference call with analysts.
"As we move into a shopping centre environment, we've recognised that there is some finesse in the execution that we need to bring in how we convert more passing traffic into in-store shoppers."
The stores are showing signs of improvement, but tentative plans to open two or three more small-format stores are on hold for the rest of the second half.
Baby Bunting ended the half with 74 stores in Australia and five in New Zealand.
It plans to refurbish another six stores to "stores of the future" during the second half, which involves closing them for 10 to 12 weeks and opening two new large format stores, in the NSW Central Coast and suburban Melbourne.
RBC Capital Markets analyst Jackie Moody said that Baby Bunting's stores of the future program had delivered a strong lift in sales, but its first-half profit had narrowly missed expectations.
The retailer's forecasts for capital expenditure over 2025/26 had increased by 29 per cent to $41 million to $43 million, Ms Moody noted.
Baby Bunting said it wouldn't pay a dividend while it focuses on growth.
In morning trading, Baby Bunting shares rose 11.8 per cent to a three-week high of $2.46.
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