The company also announced on Friday that long-serving chief executive Matt Spencer would exit his role towards the end of the year,leaving the business on a search for its next boss.
Shares tumbled at the open,with the stock down 9 per cent to $2.24 at 10.05am,and 8 per cent lower in late afternoon trade.
Baby Bunting had toldinvestors in January that higher business costs and softer-than-expected sales at the end of last year would lead to a decline in profits for the six months to December.
The company revealed on Friday that its net profits after tax had come in at $2.7 million,a 67 per cent decline on the same time last year,when Baby Bunting reached a profit of $8.1 million.
Total sales came in 6.6 per cent stronger during the half,but comparable store sales were ahead just 0.4 per cent during the year.Comparable store sales were weaker in the first six weeks of this calendar year,down 2.1 per cent up to February 16.
The reopening of shopping centres across Australia hit the company in some product areas,with competition from other stores such as discount department operators Kmart and Target,where consumers could also get essentials such as nappies and baby wear.