Baby Bunting's (ASX:BBN)
after tax profit rose 12.2 per cent to $8.1 million, coming in below expectations of $11 million for the first half of financial year 2022.
The company posted sales of $239.1 million, up 10 per cent from the same time the year before. They also unveiled an interim fully franked dividend of 6.6 cents, up 13.8 per cent from the prior year period. The baby goods retailer benefited from stores remaining open during the period and strong inventory.
Online sales made up 23.8 per cent of sales in the half, up from 19.7 per cent in the same period last year. Baby Bunting’s gross margins also increased 192 basis points to 39.3 per cent.
“We operate in a less discretionary category supplying the essential needs of new and expectant parents. As such, we were pleased to keep all of our stores open for our customers during the lockdowns that occurred in the first half. Our store performance was supported by our strengthened digital offer, including click and collect and online sales," said chief executive officer Matt Spencer.
“Our merchandise and supply chain teams have done a fantastic job in ensuring that we have maintained high levels of inventory during these times."
Shares in Baby Bunting (ASX:BBN)
are trading 2.6 per cent lower at $5.29.