Shaver Shop Group jumped almost 5% on Tuesday after the Australian specialty retailer of personal grooming and beauty products announced its financial results for FY21.
Despite significant volatility in sales as a result of government-imposed trading restrictions due to COVID-19, Shaver Shop saw a 9.6% increase in sales to $213.7 million, along with a 68.3% uplift in NPAT to $17.5 million.
Responding to a significant loss in in-store trading days, Shaver Shop continued to invest in its omni-retail offering both through store refits in key doors as well as ongoing improvements to its online sales platforms. Online sales were up 41.1% to $61.2 million with the online channel representing 28.6% of total sales in FY2021.
In line with the company’s multi-channel offering core to it strategy, Shaver Shop continued its refit plans at key doors, also opening two new stores in the last half, bringing total store numbers across Australia and New Zealand to 123.
Shaver Shop confirmed that as demand patterns shifted to accommodate the changes in government-imposed restrictions on its retail network, their model to fulfil online orders from the customer’s local store, help maintain employment ensuring strong rebounds when restrictions ceased.
Shaver Shop maintained its focus on cost control with its costs of doing business as a percentage of sales reducing 110 basis points to 25.8%. The company worked with landlords during lockdown periods, resulting in $0.8m in rent abatements in FY21 for stores that were significantly impacted by government restrictions.
Looking ahead, due to the ongoing uncertainties caused by COVID-19 and the importance of the Christmas and Boxing Day week shopping periods to its annual results, the company has refrained from providing FY22 sales and earnings guidance at this time.
CEO and Managing Director, Mr Cameron Fox commented, “Our FY2021 financial results illustrate that our customer value proposition remains unique in the marketplace and particularly relevant when salons and barber shops are closed. We saw strong sales growth in these categories and through a disciplined promotional program we were able to balance volume and margin growth to drive significantly higher gross profit dollars. We also experienced strong sales growth in our massage category as we expanded our range to meet burgeoning demand.”