COVID-19 hasn’t stopped people having babies and that’s good news for Baby Bunting
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With 6,000 babies born every week, the demand for the company’s products has not waned during the pandemic.
“Our sales performance reflects the less discretionary nature of the baby category and we have welcomed many new customers to our brand in these difficult times,” Baby Bunting said.
Total sales growth is 10.3 per cent on a financial year-to-date basis and 13.2 per cent from December 30, 2019 to May 17, 2020.
While the company has not closed its stores, it has also seen solid growth on its online channel. In the last 12 months online sales have made up 22.4 per cent of total sales. This is more than double the prior corresponding period.
Baby Bunting also reported solid growth in its click and collect service, which accounts for 42 per cent of sales.
As for specific products doing well, nursery related products such as cots and toys have held up. Baby Bunting also reported nappies and baby wipes were in hot demand — not unlike the recent toilet paper run.
While sales of travel-related products such as prams and car seats had declined, they have started to pick up again in recent days.
Baby Bunting says it is restarting some of its capital expenditure that had been paused during the pandemic.
“Supporting new and expectant parents and providing them with the essential products and services they need is at the core of what we do,” CEO Matt Spencer said.
Shares climbed 11.6 per cent this morning, continuing a consistent recovery since they bottomed out in late March.