The Baby Bunting Group Ltd (ASX: BBN) share price is flying today after the retailer handed down its full-year FY20 results.
After a difficult few years dealing with a high cost and saturated store network, COVID-19 may have been the antidote Baby Bunting was looking for.
The company reported 11.8% sales growth on 2019 as investors turned to e-commerce. The biggest contributor to the $402 million sales of baby products was 39.1% growth in online sales, including click and collect, with the second half particularly strong, up 66.1%.
This resulted in a 34.1% increase in net profit to $19.3 million and a 25% increase in the dividend to 6.4 cents per share, sending the share price higher.
Importantly, the company announced that all stores remained open and that it was not receiving any JobKeeper payments, so there is nothing hidden in this announcement as far as stimulus is concerned.
Summary: Reporting season standout, little wonder the company is now sitting at all-time highs.
For a detailed write-up on Baby Bunting’s result, check out this article from Rask Media’s Jaz Harrison: Baby Bunting (ASX:BBN) FY20 reveals 34% operating profit growth