Baby Bunting Group has reported a pro forma profit of $5 million for the first half, a 4.1 per cent increase, with total sales rising 6.7 per cent to $271.4 million. Comparable sales also increased by 4.7 per cent, exceeding the company’s guidance. Baby Bunting is a specialty retailer of baby goods, providing a wide range of products and services to new and expectant parents. The company operates both physical stores and an online platform.
Gross margin saw an expansion of 1.24 percentage points, reaching a record 41 per cent. This growth was attributed to the performance of private label and exclusive brands, which now account for 48.6 per cent of total sales. However, statutory net profit experienced a decline, falling to $1.8 million from $3.9 million in the previous period. This decrease was due to significant items associated with store optimisation and refurbishment activities.
The company noted that trading in the second half of the year has remained strong, with comparable sales up 6.7 per cent in the initial seven weeks. Baby Bunting has reaffirmed its second-half pro forma profit guidance, projecting between $12.5 million and $14.5 million. The full-year guidance has been narrowed to a range of $17.5 million to $19.5 million, based on the assumption of full-year comparable sales growth of 5 per cent to 7 per cent and a gross margin exceeding 41 per cent.
