Baby Bunting Share Price Down 10% – Is it a buy? (ASX: BBN)

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ASX BBN - Baby Bunting Share Price

Dear Reader,

Retailer Baby Bunting Group Limited [ASX:BBN] has a $450 million market cap and over 1,200 staff.

News just in…

It has told the market that sales are up 8.1% to $186.4 million.

That includes gross profit rising 15% to $68.9 million.

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And this is during what some say is a ‘retail apocalypse’, as several retailers go into administration.

With an announcement like this, you may wonder…is now the time to buy?

Today, we’ll take a look.

But first…

Who is Baby Bunting Group Limited [ASX:BBN]?

Baby Bunting is what the company calls itself  a ‘one-stop-baby shop’.

The company sells everything from prams, babywear and toys to feeding products.

Arnold Nadelaman and Gail Nadelman founded the company in 1979.

Today, it has over 50 stores currently open…with plans to operate 80 stores across Australia.

The company is also seeing a big increase in online foot traffic.

Online traffic grew to over 10 million unique visits. Which is an increase of 13% to the prior year.

BBN said online sales grew by 10.5% and that it now makes up 11.7% of total sales.

The result of this good news? A dividend!

BBN will be paying out a $0.041 dividend. And the ex-dividend date is set for 27 February.

So what does all of this mean?

Let’s take a look at the chart….

BBN Share Price Testing All-Time Highs

Baby Bunting BBN ASX Share Price Chart

Source: TradingView

[Click to open in a new window]

Right now, it’s too early to tell how this news will impact the market over the medium term.

However, it wouldn’t be uncommon to see some profit taking occur.

One thing to point out is that the Baby Bunting share price is nearing its all-time high.

We can assume this means that investors are currently happy with the direction of BBN.

This may change.

For now, it may not be wise to go chasing the stock.  The recent news will now be priced into the share.

Though, if the future of BBN seems interesting…it may be worth placing it it on the watchlist.

As always, this is not a recommendation to buy or sell BBN. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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