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#Bull Case
Added 3 months ago

Baby Bunting (BBN) is currently rated as a buy by at least five brokers, including Morgan Stanley which has a price target on the ASX share of $6.30.  According to Morgan Stanley, the Baby Bunting share price is valued at 27x FY22’s estimated earnings.

The company is seeing profit rise faster than sales growth, which is positive for shareholder returns. FY21 half-year sales rose 16.6% and pro forma net profit increased 43.5% to $10.8 million. That was thanks to operating leverage with various parts of the business, including the gross profit margin growing by 41 basis points.

Baby Bunting has increased its growth prospects with plans for New Zealand expansion. The first store is expected to open in FY22 as part of a network of at least 10 stores.

FY21 second half growth is expected to be solid, with comparable store growth for the first six weeks at the second half of 18.5%

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#ASX Announcements
Last edited 6 months ago

12 February 2021

Results Summary


  • Total sales growth up 16.6% vs pcp
  • Comparable store sales growth of 15.0%
  • Total online sales growth of 95.9%
  • Click & Collect sales growth of 218%

Gross Profit

  • Gross Profit income $81.2m, up 17.9%
  • Gross Profit % up 41 bps to 37.4%
  • Private Label & Exclusive Products 39.0% of sales (1H FY20: 35.5%)


  • EBITDA growth of 29.7%
  • EBITDA margin now 8.5%, up 86 bps vs pcp
  • CODB leverage of 45 bps vs pcp


  • NPAT growth of 43.5%
  • EPS 8.4 cents, up 41.9% vs pcp
  • Interim dividend of 5.8 cps (1H FY20: 4.1 cps)
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#ASX Announcements
Added 8 months ago

3 December 2020


Key Highlights

  • Forbidden Foods secures national distribution with Baby Bunting for its new FUNCH Baby Fruit Puree range & Infant Wholegrain Cereal range.
  • Baby Bunting is Australia’s largest specialty baby goods retailer with 58 stores and over $400m in annual sales.
  • Range rolled out to stores from January 2021
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#Business Model/Strategy
Added 12 months ago
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#Bear Case
Last edited 2 years ago

They say to try a company before buying shares.

Baby bunting has been going well because all the competitors have gone out of business.

Tried today to go online for the boxing day sale. Website would let you get to the last part and then couldnt put the order through. Very frustrating as it was an issue with their IT - not accepting the postcode/address. Tried the pc, internet explorer, chrome and the iphone with no success. Tried different addresses too. 

Looking at online reviews, it seems it's not a boxing day issue alone. Very poor online reviews.

We dont have a choice, and the sales were decent so had to go into the store. Thankfully the in-store experience was excellent, but I suspect they still would have lost some business.

Like us, most people will still go there due to lack of other options and they seem to have exclusive products (likely on very nice margins) which you cant get elsewhere. The instore help is also quite invaluable (particularly when dealing with anxious parents). Presumably they will stay strong for a while, but lack or competition may lead to "laziness" too.

if there were other options would they still dominate???



went to pick up some of the layby items (layby actually useful as you want to buy what you need but not fill the house up with stuff too soon) and spent another random $200 in store.

learning points:

1- babies can still be expensive

2 - Maybe a poor online experience helps them.


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