Shaver Shop Group, the Australian specialty retailer of male and female personal grooming and beauty products, has benefitted from booming sales due to COVID-19 lockdowns forcing customers to look to at-home grooming. The company provided a business update in relation to its half-year ended 31 December 2020.
Shaver Shop’s strong trading performance continued through the month of December leading to Q2 FY21 sales increasing 12.4% in total and 13.7% on a like for like basis. Online sales growth of 64.7% in Q2 was the primary driver of total and like for like sales growth.
Outstanding online sales growth of 102.0% across the first half of FY21 was the key driver in delivering like for like sales growth of 17.3% and total sales growth of 15.2%. Online sales represented approximately 30.3% of total sales in the first half.
Gross profit margin is expected to increase more than 200 basis points across H1 FY21 as the company made decisions to balance volume growth and profit margins particularly across the key Black Friday, Christmas and Boxing Day trading periods.
Commenting on Shaver Shop’s first half trading results, Shaver Shop’s Managing Director and CEO, Mr Cameron Fox said, “Shaver Shop has now delivered 24 months of consecutive like for like sales growth, underpinned by the accelerating trends towards DIY personal care solutions. Our customer database now exceeds 600,000 members and our online sales more than doubled in the first half to $37.5 million reflecting our position as the leading omni channel retailer in our core categories.”
H1 FY21 Guidance
Having regard to Shaver Shop’s trading performance over the first half including the critical Christmas gift-giving season, Shaver Shop expects H1 FY21 Net Profit after Tax to be between $13.5 million and $14.0 million (H1 FY20 - $7.6 million)