BBN 0.00% $1.83 baby bunting group limited

Medium/Long Term future of Baby Bunting?

  1. 118 Posts.
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    What I don't understand is that with:

    1. Collapse in fertility rate - lots of babies were forward brought (i.e. mini boom after initial lockdown), but the numbers globally in western countries aren't looking good at all, especially in Australia where we now have the lowest birth rate that we've ever had! How will they continue to grow?

    2. Drastic inflation approaching and Baby Bunting have such a large % of their business wrapped up in Private Label (i.e. they have to wear the costs or pass them on), how will this play out? Their already razor thin margins will surely get squeezed.

    3. Amazon - given their online play growing, it is just a matter of time before the customer realises that they can buy it easily via Amazon. How will they address this?

    4. Instagram/Online - with the rise of unique instagram brands and online only brands, I just don't see them being competitive with their offer unless on big ticket/complex things like prams. I guess it is smart that they do the pram installation, but the higher margin lines higher volume lines, how can they compete?

    5. Inflation - mentioning inflation again, as people's disposable income shrinks, they'll make without or gumtree the baby items.

    Personally, longer term this is a massive sell off to the $2.20 to $3.10 mark. I think we were expecting a boom in babies but the opposite has happened as people are fearful, unless they can drastically turn on the immigration tap, which isn't politically favourable. They even didn't give guidance to future results which to me screams fear. Labour, rents, cost of goods all increasing - this will weigh heavily on the new to be parents.
 
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