Investors in baby goods retailer Baby Bunting have sent the stock to its highest point in 18 months after the release of full-year results this morning.

Shares in Baby Bunting (ASX:BBN), which had been trading between $1.40 and $1.80 over the past few months, rocketed to $2.41 today — a gain of 38 per cent.

This was off the back of a 9 per cent increase in revenue to $303 million — though profit dropped considerably, down 29 per cent to $8.6 million.

It’s the highest the stock has traded since the first day of 2017, when shares sat at $2.41 — and short of its all-time high of $3.05 in September 2016.

The results were heartily welcomed by shareholders, who earlier deserted the company following a May profit downgrade.

It’s been a tricky period in the sector, with Baby Bunting’s major four competitors, including Baby Bounce and Baby Savings, all entering external administration over the financial year.

Shares in Baby Bunting (ASX:BBN) are at their highest point since early 2017.

Baby Bunting chief Matt Spencer paid tribute to the company for weathering the storm.

“The past financial year has seen Baby Bunting strengthen and consolidate its market-leading position as the largest specialist baby goods retailer in Australia,” he said.

“In unprecedented times our top four competitors all entered external administration resulting in significant price deflation as a result of distressed retailing.

“Despite this, Baby Bunting was still able to grow sales and transaction volumes within the difficult trading environment.

“The focus for the year ahead is to grow our business by continuing to deliver to our customers the broadest range, at the best value, conveniently across multiple channels, while providing excellent service and advice.”

The company will pay out a dividend of 2.5c per share on September 14.

That’s down 41 per cent  on 2017’s dividend of 4.3c and down 60 per cent on the 2016 dividend of 6.3 cps.