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Baby Bunting Sales in Decline

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By Published On: January 23, 20240 Comments

Baby Bunting continues to struggle with sales down YoY, but the retailer is optimistic that its new strategy will bring up the numbers.

ASX listed baby-wares retailer and marketplace Baby Bunting has revealed its H1 FY24 preliminary results. 

Sales are down 2.5 percent YoY at $248.5 million and growth profit percent has fallen flat with no change from 2023, at 37.2 percent. Pro Forma NPAT has taken the biggest hit, down 31.3 percent at $5.1 million.

Baby Bunting CEO, Mark Teperson, said the company is now focusing on trade, productivity, and customer experience, a focus which has already seen some positive performance improvements.

“Our first half update shows that while conditions have remained challenging, we are beginning to see improvements in operations and performance from changes we have introduced into the business reflecting our focus on trade, productivity and customer experience. We expect the changes made to date will continue to deliver a trend of improved performance in the second half,” he said. 

Baby Bunting has already seen the effects of this change. “Over the last quarter, we have refreshed how we go-to-market with an increased focus on performance marketing and social media,” continued Teperson. “This revised approach has correlated with growth in new customer acquisition, which was 6.6 percent in Q2 compared to –8.4 percent in Q1. This improvement has been a key driver in sales impacts. We have also focused on expanding our omni-channel fulfilment and building momentum in New Zealand. 

“Trends in sales growth are turning, with comparable store sales moving from –8.8 percent in Q1 to –5.3 percent in Q2. Over the last 9 weeks, which corresponds with the launch date of changes made to our go-to-market messaging and includes the Black Friday promotional events and the Boxing Day sale event, comparable store sales have been around positive 1 percent year-on-year with positive transactional growth in consumer staple categories negating the price compression experienced in some categories.”

Teperson noted that trends in sales growth are starting to turn. Comparable store sales moved from –8.8 percent in Q1 to –5.3 percent in Q2, and Baby Bunnting has begun reducing inventory and reducing costs through eliminating catalogues – with the marketing cost being reinvested into digital and social marketing. 

He concluded, “I am excited about the traction that we are beginning to see from the initial changes we have introduced from November and I look forward to providing further details on our first half performance and our plans for the year ahead at our results presentation in February.” Baby Bunting will release its half year reviewed statutory results on Tuesday, 20 February 2024.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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