Baby Bunting says that the trend of buying less is having a moderate impact on its customers.
In January, the company experienced a spike in absenteeism at its distribution centre.
According to Baby Bunting, customers have opted to shop for essential items instead of buying cheap. He noted that many pregnant women have also opted to shop less.
Through its store network, Baby Bunting has been able to effectively distribute its products online. However, it still has experienced an increase in omicron.
For the first half of 2019, comparable store sales grew by 6.1 percent. Online sales also increased by 30 percent.
The company noted that it could raise the prices of some of its products due to the increased costs of goods sold.
Baby Bunting’s profit grew significantly in the first half of 2022 due to the company’s robust sales.
The stock price of Baby Bunting fell 4 percent in early trade on the Australian Securities Exchange. It had hit a 12-month low in January.
Due to its growing presence in Australia, Baby Bunting is the country’s largest baby goods and maternity retailer.
For the 26 weeks ended December 25, 2018, the company’s total sales reached $239.1 million, a 10 percent increase from the previous year.
Before tax, depreciation, and amortisation, Baby Bunting’s profit before interest and taxes grew by 18.6 percent to $21.8 million.
Excluding certain items, the company’s net profit rose 11.8 percent to $8.15 million. On a pro forma basis, it was up 16.4 percent. The company’s robust performance to its strengthened digital offer, which helped drive online sales and store visits.
The company’s gross margins remained strong at 39.3 percent during the half. The company’s cost of doing business increased by 125 basis points to 30.2 percent of sales due to the company’s significant investment in its new distribution center.
In October, the company stated that it expected sales to bounce back strongly in NSW after the school lockdowns.
During the half, the company opened two new stores in NSW and Victoria, taking the total number of Baby Bunting’s stores to 64.
Although the company is expected to open more stores in the second half of 2021, they did not provide a profit guidance for the year.
One negative factor that weighed on Baby Bunting’s performance was the delay in opening its first store in New Zealand due to the COVID-19 disruptions.
The company’s first store in New Zealand is expected to open in the first quarter of 2023.
To save when you shop at Baby Bunting, use a Baby Bunting coupon code with your purchase.