Nursery and children’s products retailer Baby Bunting continues to do well through the COVID-19 pandemic, with the company telling the market on Tuesday that headline sales were up 13.2% from the start of 2020.
Baby Bunting ((BBN)) is growing strongly. First half results were broadly in line with broker estimates although gross margins were soft. Morgans believes the company’s strategy of investing some of its top line back into prices and customer service is the right one and should confirm the company’s proposition as a category killer in the baby/nursery goods segment.
FY19 results beat Morgan Stanley's estimates at every line. Moreover, the broker was surprised by the outlook which points to the durability of the company's leadership. FY20 estimates for earnings per share are lifted 8%.