Baby Bunting Group Ltd (ASX: BBN) has bounced today up nearly 6% to $1.42 at the time of writing in response to the tax cuts for families announced in last night's Federal Budget.
Also, Australian Super, a substantial holder of Baby Bunting, has been a net buyer of shares since March 2018, increasing its holding by over 1% to 10.5%.
As well the FY18 earnings update released yesterday by the company revealed that despite the challenging environment this year, FY19 is likely to be better. A statement by Matt Spencer, CEO and Managing Director, said "What we have seen in the industry during this financial year in terms of the extent of consolidation is unprecedented. While challenging in the short term, these changes in market conditions present some great opportunities for the growth of Baby Bunting's business and
profitability in FY2019 and beyond."
In the Federal Budget was tax relief of $530 tax relief for low- and middle-income families, which may result in higher sales for retailers targeting families.
