Smurfs are delivered by a stork during the blue moon and that happens once every 100 years. That is how baby smurf came to be. This was revealed to us in the episode "Once Upon a Blue Moon."
Smurfette, on the other hand, was a creation of Gargamel and later accepted to be a part of the smurf village.
Source(s):
http://bluebuddies.com/help/smurfs_cartoon_episode_guide.htm
http://bluebuddies.com/help/smurfette_created_by_gargamel.htm
Religiously watching the show every Saturday when I was a kid.

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I really think smurfs multiply through mitosis. Aside from the above-mentioned answers, what if two smurfs were to travel to a distant location, far away from Gargamel and magic mirrors? How would they multiply?

It's quite obvious there's nothing underneath their little leotard - even though they are a cartoon, there's no distinctive shape that would lead one to believe they have external reproductive organs. I think that when smurfs eat enough, they simply divide into two. This could also explain Reflection Smurf, if you can prove that the story is actually Vanity Smurf's point of view after taking some designer drug(which I'm sure we could all believe would happen).

Smurfette, being a creation of Gargamel, was accepted by the smurfs - but not by me. She is not a smurf, she is simply an accepted abomination. Reflection was a drug trip, and the story of Baby Smurf(the whole "delivered on a blue moon" scenario) is simply a made-up falsehood to prevent young smurfs from knowing the secrets of their reproduction(much as I'm sure everyone here has heard the stork story).

The birds and the bees, as explained to the smurfs, would be more akin to "be sure you never eat after you are full, but if you must, wear a bib and loose-fitting clothing". Of course, this is all just my personal theory, helpfully documented by my lovely girlfriend for ease of reference during a rant one day on the reproductive systems of Saturday morning cartoons.
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