Trans-Tasman retailer Baby Bunting says tax-paid profits fell nearly 50 per cent for the full year, reflecting soft consumer spending.
In the year-to-date data to July 2, the company says total sales improved 1.7 per cent to $515.8 million while comparable store sales fell 3.6 per cent. Online sales contributed $103 million and represented 20 per cent of turnover.
Pro forma group tax-paid profit reached $14.5 million, down 51 per cent compared to the same period last year.
Baby Bunting acting CEO Darin Hoekman said the business continues to grow market share and experience “positive sales growth” despite macroeconomic factors impacting the retail sector.
“While our category is less discretionary, our customers are not immune to cost-of-living pressures and we experienced sales decline towards the end of the year as consumer spending slowed.
“We have a great range of products at entry-level pricing and beyond, which means we can provide great value to help our customers lower the costs of parenting.”
He added the business is now focussing on lowering its cost of doing business and managing its working capital to align with sales and the ongoing uncertainty around the trading environment.
For the first six weeks of trading in FY24, total sales fell 4 per cent while comparable store sales were down 9 per cent.
The business opened seven new stores in the last financial year and plans to open five more in the current year – three in New Zealand and two in Australia (Cranbourne and Maroochydore).
Incoming CEO Mark Teperson will commence his role on October 2.