Baby Bunting Group shares finished modestly lower on Friday, despite the baby goods retailer posting a relatively positive set of half-year results.
The company reported a statutory net profit after tax of $8.1 million up 12.2%, thanks to record total sales of $239.1 million, representing growth of 10.0% on the prior period.
Baby Bunting’s private label and exclusive products sales grew 25.3% to be 44.5% of total sales putting the retailer on track to achieve its long-term target of 50% of sales coming from private label and exclusive products.
Online sales including click and collect grew 33% to $56.8 million and now make up 24% of total sales. Click and collect grew 46% and made up around 59% of all online sales in catchments where Baby Bunting has a store. As a result, the company highlighted that despite the surge in online purchases about 90% of all sales still involve a customer store visit. Baby Bunting said it has continued its digital investment in the transition to a headless architecture as the technology foundation for online and digital commerce experiences.
The company opened 4 new stores in the period, in Alexandria (NSW), Wagga Wagga (NSW), Shepparton (Vic) and Cairns (Qld) were opened during the half, bringing the total store numbers to 64 stores, as the company’s network plan is for more than 100 stores around Australia in various formats. A further 2 to 3 stores are expected to open in the second half.
In a most recent trading update, as at 9 February 2022, comparable store sales growth was 6.1% year-to-date. Online sales were up 30.0% for the previous 6 weeks against the prior corresponding period.
Baby Bunting’s CEO & Managing Director, Matt Spencer said: “Baby Bunting remains focused on executing its strategy of growing market share. We will also expand our services business and continue to strengthen our logistics and supply chain capabilities. “Ultimately, as the strength of our offer grows and our customer engagement increases, we will assess the broader $5.1 billion baby goods market for future long-term growth opportunities, relative to our current $2.5 billion addressable market.”