Shares smashed as optimistic shoppers prove no match for retail weakness

Simon Evans and Tom Richardson

May 9, 2024 – 4.12pm

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Consumers are increasingly bullish and banking on tax cuts and higher property values to buoy their finances – optimism which did little to stop a slide in retail stocks as investors took in weaker-than-expected sales so far this year.

Shares in Baby Bunting, the country’s largest children’s products retailer, tumbled more than 22 per cent on Thursday as it revealed profit for the 12 months to June 30 was likely to be as low as $2 million, compared to $14.5 million a year earlier.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.

Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate.