Site menu

Search by ticker code:
Generic filters


Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

FY22 trading update: Baby Bunting (ASX:BBN) share price on watch

The Baby Bunting Group Ltd (ASX:BBN) share price is on watch after providing a trading update for FY22, with growth returning.. 

The Baby Bunting Group Ltd (ASX: BBN) share price is on watch after providing a trading update for FY22.

Baby Bunting’s FY22 trading

The baby product retailer announced that in the financial year to date (to 3 October 2021), it has seen total sales growth of 1.5%.

However, there are different sales numbers within that overall growth.

Comparable store sales “continue to strengthen” and were down by 1.3%. However, excluding NSW and ACT stores, comparable store sales growth was 4.7%.

But e-commerce sales, including click and collect, continue to deliver a lot of growth. Online sales rose 37.7% in the year to date, which was on top of the 126% growth in the prior corresponding period in FY21.

Baby Bunting’s profitability continues to increase. The retailer reported that its gross profit margin increased 120 basis points (1.20%) to 38.7%. This was largely driven by private label and exclusive products, product mix and supply chain efficiencies.

Private label and exclusive products made up 44.3% of year to date sales, it was 38% in the prior corresponding period. Baby Bunting has a long-term goal of 50% for private label and exclusive product sales.

Business progress

The company is expecting to open between six to eight new stores in Australia in FY22, with two in New Zealand towards the end of the second half of FY22.

Baby Bunting said that its transformation program is progressing well with an anticipated launch of its new Australian website and phase 2 of its loyalty program in early November.

Management comments

Matt Spencer, the Baby Bunting CEO and Managing Director said:

When we last updated the market on 13 August, comparable store sales were negative 6.4% for the first seven weeks of the year. Since then, we have seen a positive trend in comparable store sales growth, despite the ongoing lockdowns experienced across Victoria, NSW and the ACT.”

Summary thoughts on the Baby Bunting share price

Before taking into account today’s reaction, Baby Bunting shares had fallen 7% since the release of the Baby Bunting result.

I think Baby Bunting is one of the best retailers on the ASX along with ones like Wesfarmers Ltd (ASX: WES) and City Chic Collective Ltd (ASX: CCX). It’s an essential retailer, it has a growing store network across Australia (and New Zealand), online sales are booming, profit margins are rising and so on. It ticks a lot of boxes.

The Baby Bunting share price reflects that growth expectation, but short-term weakness could be an opportunistic time to think about this business.

$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.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content