Baby Bunting shares soar on trading update, growth plan
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The news: Shares in Baby Bunting soared on the ASX after the retailer reaffirmed its full-year profit guidance and outlined a five-year strategy to boost earnings.
The numbers: The company said it still expects full-year profit between $2 million and $4 million with total sales improving 1% since the start of May. Same store sales from 1 May to 24 June were down 0.7% compared to a 7.7% decline between January and April.
Baby Bunting shares soared more than 16% to $1.44 in early trading.
The context: The company said the improvement reflected benefits of recently introduced new product assortments, renewed focus on new customer acquisition, introduction of a refreshed promotional engagement, proactive branding and go-to-market campaign.
Chief executive Mark Teperson also outlined a five-year strategy to provide the blueprint for delivering future growth, with the target of more than 10% earnings margin.
Baby Bunting shares had lost a third of their value so far this year after reporting worse-than-expected sales for the first four months amid cost-of-living pressures. Last month, investment manager HMC Capital picked up a 10.3% stake in the company.
The source: ASX announcement
