The result was good but sales revenue may have been influenced...

The result was good but sales revenue may have been influenced by mybabywarehouse going into admin before christmas and not operating for the best part of six months . Baby Bounce purchased 15 of 21 stores of the My Baby Warehouse from the administrators and traffic to www.babybounce.com.au is up from around 35,000 visits in june to 115,000 in july according to web traffic website SimilarWeb..

Projected population growth for BBN targeted 0 to 3 age group is around 1% a year.

http://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population Pyramid - Australia

To go from 36 stores to 80 stores will need to see some of the competition close or be bought out by BBN. Most of the competition seem to be increasing store numbers as well so i'm not sure where the growth in revenue per store will come from or will new stores cannibalise exisiting store sales . What about if the major online players like Amazon.com and jet.com come to Australia.

Private label and exclusive product sales have grown from 7.2% of sales for FY2015 to 10.0% of sales in FY2016 might give BBN a competitive edge over the competition.

2016 EV/EBITDA of almost 20 times at the current price of $2.96 makes it sort of fully priced for now but then again i thought it was overpriced much lower.