Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Why the Baby Bunting (BBN) share price is booming

The Baby Bunting (ASX:BBN) share price is up more than 10% after the retailer gave the market an update. 

The Baby Bunting (ASX: BBN) share price is up more than 10% after the retailer gave the market an update.

What is Baby Bunting?

Baby Bunting is a retailer that specialises in baby goods with over 6,000 lines such as prams, cots, car safety equipment, toys, feeding and other accessories. Starting in Melbourne in 1979, the company now has over 50 stores in Australia with plans to grow the store count beyond 80 over the next few years. It currently employs over 700 people.

Baby Bunting’s exciting update

The retailer announced its trading performance for the second half from 30 December 2019 to 17 May 2020.

Total sales growth has been 13.2% with comparable store sales growth of 8.1%. Online sales are 17.3% of total sales, representing growth of around 66% compared to the prior corresponding period.

Baby Bunting also released its numbers on a financial year to date (YTD) basis. Total sales growth is 10.3%, comparable store sales growth is 3.4% and online sales have been 14.3% of total sales which represents growth of around 34%.

The company boasted that its sales performance reflects the less discretionary nature of the baby category and many new customers have shopped with Baby Bunting during these difficult times.

Online sales were 12.4% of sales before 23 March 2020 to 22.4% of sales through the following two month period to 17 May 2020 according to Baby Bunting. This was despite all Baby Bunting stores remaining open during the current period.

Baby Bunting CEO and Managing Director Matt Spencer said: “Initially during the period of public health restrictions, there was strong demand for lower margin consumables products, including nappies and baby wipes. As the period has progressed, we have seen increases in purchases of products for the nursery, such as cots and furniture, toys and playgear and bedding. We did see lower transactions in travel-related products such as prams and car seats. However, as restrictions have eased, sales of these products have begun to recover.”

Is the Baby Bunting share price a buy?

The company itself acknowledged it’s difficult to anticipate how things will play out, and Baby Bunting is facing increased costs. The share price has already recovered a lot, so investors may have missed out on most of the gains. I would much rather buy the technology shares below.

[ls_content_block id=”18457″ para=”paragraphs”]

Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content