Baby Bunting (ASX:BBN) share price: all-time highs and potential teething issues

The Baby Bunting Group Ltd (ASX: BBN) share price hit all-time highs today, but the potential impacts of COVID-19 might still be lingering.
The post Baby Bunting (ASX:BBN) share price: all-time highs and potential teething issues appeared first on The Motley Fool Australia. –

hands throwing smiling baby up in the air representing rising asx share price

Shares in Baby Bunting Group Ltd (ASX: BBN) have continued their trend upwards today to set yet another all-time high. Australia’s largest specialty retailer of baby goods has enjoyed a 165% rise in its share price over the last year.

At the end of Friday’s session, the Baby Bunting share price was $6.58, up 3.8%.

Results recap

The last lot of metrics to come out of the company were back in February. With the Baby Bunting share price surging since then, it might be worth taking a look again.

For the first half of FY21, the retailer achieved sales growth of 16.6% compared to the prior corresponding period (pcp) to $217.3 million. While earnings before interest, tax, depreciation, and amortisation (EBITDA) grew to $18.5 million – an increase of 29.7%.

Operating in what Baby Bunting describes as “a less discretionary category”, the company grew through a challenging period. During the first half, the company added 3 new stores and didn’t receive any JobKeeper payments.

Most notably, after a thorough assessment, Baby Bunting made the decision to expand to New Zealand. It now expects to open its first store in FY22, with plans of over 10 stores across the region.

It’s all good news, which explains the Baby Bunting share price rally. However, there is one potential ‘teething issue’ that could slow momentum.

Will fewer ‘customers’ affect Baby Bunting share price?

Australia’s birth rate has been in decline for several years. The natural increase in population was 3.8% lower than the previous year for the 12 months to September 2020.

Typically, Australia relies on immigration for its population growth. But with international borders remaining closed due to COVID-19, immigration inflows are non-existent.

Actual birth statistics are always lagging due to the arduous collection of data. As a result, we likely won’t know the full extent of birth rate impacts in Australia until the end of the year. Though, the longer border restrictions are in place, the bigger the birth deficit in Australia.

For now, the Baby Bunting share price and its shareholders are unfazed.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Baby Bunting (ASX:BBN) share price: all-time highs and potential teething issues appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!