Shares in Baby Bunting fell hard after a profit downgrade by the baby goods group due to increased retail competition.
A short time ago, they were down 9% to $1.36.
“Given the challenging conditions in the first four months, we think it appropriate to adjust our guidance,” says Matt Spencer, CEO and Managing Director.
“Nevertheless, the business is performing well and we believe our strategy is working.
“We introduced everyday low pricing on our core range of car seats into the market in late July which has seen us grow market share.”
Baby Bunting sees flat EBITDA (earnings before interest, tax, depreciation and amortisation), about the same as the $23 million in 2017, down from previous guidance of between $25.3 million and $27 million.
Like for like sales growth is expected to be 4%.
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