Nursery and children’s products retailer Baby Bunting continues to do well through the COVID-19 pandemic, with the company telling the market on Tuesday that headline sales were up 13.2% from the start of 2020.
The company told the ASX in an update that comparable-store sales were up a solid 8.1%.
The news saw the shares leap another 15% to $3.08. That’s still well under the year high of $4.03.
That means the shares have more than doubled since the March low of $1.51.
And like most other retailers Baby Bunting’s online sales surged, rising 66% on the prior year and accounting for 17.3% of total sales.
As a result of the higher online activity, the company has commissioned a new online fulfillment hub in NSW and will spend around $3 million on upgrading its online store.
CEO Matt Spencer said in Tuesday’s statement that it had picked up a swag of new customers in the crisis.
“There are around 6,000 babies born in Australia each week and we are critically aware of how important it is to provide support to new and expectant parents at a time when they face additional challenges brought about by social distancing requirements,” he said.
Mr. Spencer said during the shutdown period, parents initially sought products such as nappies and baby wipes, but furniture, toys, and clothing have increased in popularity as restrictions begin to ease.
Despite the stellar sales result, Baby Bunting warned of higher operating costs and uncertainty over the future trading environment as the business moved towards the key end of financial year period.
