Baby goods retailer Baby Bunting (ASX:BBN) has announced an earnings downgrade of $18 to $20 million for the 2018 financial year.
This compares with earnings guidance of around $23 million announced at the time of the company’s first half results.
The company says sales and gross margin performance have been adversely affected by the distressed trading of competitors and liquidation of stock.
Baby Bunting says it’s confident in future year’s growth following current sector consolidation.
Shares in Baby Bunting (ASX:BBN ) are trading 3.68 per cent lower to $1.31 following the announcement.