Baby Bunting marks record sales, begins New Zealand foray

(Source: Bigstock)

Baby Bunting has overcome Covid-related trading restrictions and ongoing supply-chain disruptions to post record sales last financial year.

The baby goods retailer says sales grew 8.3 per cent to $507.3 million (with same-store sales up by 5 per cent) while statutory net profit attributable to shareholders rose 14.6 per cent to $19.5 million. Against results for two years earlier, the company says sales grew by 25.2 per cent.

Online sales, including click and collect, contributed 22.2 per cent of total sales, representing a growth of 24.2 per cent to $112.7 million.

The company’s private label brands such as 4Baby, Bilbi and Jengo contributed 45.3 per cent of total sales.

Matt Spencer, CEO and MD of Baby Bunting, said the results were “tremendous” given the uncertain retail conditions across Australia during the first half.

“Our total sales exceeded half a billion dollars for the first time,” he said. “We continued to grow our market share at the same time as we delivered very strong gross profit growth. But we also worked hard to continue to drive further efficiencies in our supply chain and in our buying to ensure we provide great prices to our customers, at a time when value remains so important.”

The same day the retailer announced its results, it opened its first store in New Zealand, at Auckland, and said it plans a second store in Christchurch during the next financial year. The business expects to grow its network in the country and add more than 10 stores.

In Australia, the business will open six new stores in the next financial year taking its network to 70 stores. It plans 110 long-term.

A Baby Bunting Marketplace is expected to launch in the second half of the next financial year which will sell a range of third-party products and first-party drop ship sales.

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