Baby Bunting results improve on the back of retail enhancements
15 February 2019, Written by Business News Australia
New stores and the introduction of a buy-now pay-later finance option saw Baby Bunting's (ASX: BBN) first half results improve.
Revenue was up 17.2 per cent to $177.688 million in the first half, whilst profit rose 27.8 per cent to $5.216 million.
The company says it has rebounded from significant competition disruption, price deflation, and significant inventory liquidation that marred its FY18.
Comparable store sales growth of 9.5 per cent was driven by increased market share in areas where competitors exited in the previous year.
Private label and exclusive products are now 25.3 per cent of all company sales, up from 18.4 per cent in the prior corresponding period.
The company opened five new stores in 1H19, including the company's first shopping centre format store in Chadstone.
Significantly, Baby Bunting replatformed its online store which is now expected to open in March 2019. This is an important moment for the company considering online is the group's largest trading unit in its network.
Online sales accounted for 11.5 per cent of sales during the period, an increase of 61 per cent against the prior corresponding period.
The company will pay an interim dividend of 3.3 cents per share on 15 March 2019.
Shares in Baby Bunting are down 2.79 per cent to $2.26 per share at 12.25pm AEDT.
Business News Australia
Author: Business News Australia