Shares in Baby Bunting fell hard despite the pram and cot retailer lifting full year profit 47% to $12.2.
A short time ago, the shares were down 10.7% to $1.74.
Total sales were up 17.4% to $278 million and comparable store sales growth 6.9%.
However, in its investor presentation Baby Bunting dedicated two slides to discussing the threat from Amazon’s big push into Australia.
“There has been significant speculation about the potential impact of Amazon’s arrival in Australia,” the company says.
The company says Baby Bunting is cheaper than Amazon for about half its products and that more than half its top 250 selling goods are subject to Australian mandatory safety standards.
“Based on the analysis at this time, there is not a significant difference (+/-) in Baby Bunting pricing relative to overseas markets,” the company said.
“As we continue to build scale there is opportunity to further strengthen Baby Bunting’s price proposition.”
Here’s how Baby Bunting sees the impact of Amazon on Australia:
Baby Bunting sees a Amazon and eBay taking about $50 million in potential sale.
The company declared a final fully franked dividend of 4.3 cents a share.
In July 2017, the Baby Bunting opened its 43rd store in Munno Para, a suburb north of Adelaide.
“Our aim is to be the most loved baby retailer for every family, everywhere,” says CEOMatt Spencer.
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