Oh baby, it’s a hard world

BABY Bunting’s share price has taken a hit despite the group reporting a 28 per cent bounce in first-half profit to $5.2 million.

The infant-goods retailer yesterday said revenue jumped to $177.68 million in the six months to December 30, up 17.2 per cent from the same period a year earlier.

It came after the group opened five new stores during the half.

The Melbourne-based company also performed well in digital retail, growing the proportion of its online sales from 8.4 per cent of all sales a year earlier to 11.5 per cent.

But shares in the group fell yesterday — closing 6 per cent lower at $2.19 — as the headline growth figure came in below market expectations.

Rising first-half costs from award wage increases were among factors weighing on sentiment.

The company left its fullyear earnings forecast unchanged at a range of $25 million to $27 million.

Chief executive Matt Spencer said online sales had increased more than 60 per cent in the half.

He said the company was preparing to launch a new digital platform next month. Baby Bunting’s total number of stores stands at 52 after it added two in Sydney and opened shops in Melbourne, Hobart and Toowoomba.

The group raised its interim dividend 0.8c to a fullyfranked 3.3c.