Baby Bunting expects profit up to $17M

• Baby Bunting Group updated its full-year guidance with an expected pro forma net profit after tax of $16 million to $17 million.
• The updated range reflects a decrease in second-half profit expectations compared to previous guidance following softer fourth-quarter trading conditions.
• The company continues executing its strategic plan through store refurbishments and expanding its online sales channel.

Baby Bunting Group (ASX:BBN) expects full-year pro forma net profit to reach $16 million to $17 million.

This updated forecast compares to a pro forma net profit of $12.1 million in the previous financial year.

“While trading softened through the fourth quarter, delivering pro forma NPAT growth of 32% to 40% for the full year and further gross margin expansion are strong results in a difficult consumer environment,” said Baby Bunting CEO Mark Teperson.

The company stated that full-year total sales are expected to reach between $553.0 million and $555 million.

Following the announcement, the Baby Bunting share price was down at $1.65.

Management noted that the group is maintaining disciplined cost and capital management alongside online sales growth of approximately 16%.