Baby Bunting’s net income plunges amid cost of living pressures
Baby Bunting booked significantly lower net profit in the fiscal first half as sales declined amid macroeconomic challenges and price competition.
The baby products retailer’s net profit plunged 31.3 per cent year over year to $3.5 million as sales fell 2.5 per cent to $248.5 million.
Earnings before interest, taxes, depreciation, and amortisation declined 12.6 per cent to $10.6 million while gross profit margin stood at 37.2 per cent.
“Trading has tended to be softer outside promotional periods with our customers more attracted to key promotional events during the year such as the Boxing Day promotion, while the Black Friday promotion was our largest ever,” said Baby Bunting CEO Mark Teperson.
The company opened four stores in New Zealand during the period, taking the store count there to four.
Baby Bunting aims to reach at least 10 stores in New Zealand, where it aims to increase its market share.
The company did not provide an outlook for this year due to the current circumstances.
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