Hair and COVID are making for a heady and increasingly profitable mix for the personal grooming retailer Shaver Shop.
The company has again upgraded its financial performance with a boost to sales and earnings thanks to COVID and the various stages of lockdowns around the country.
Shaver Shop surprised last year with higher June 30 earnings as home grooming and personal care and grooming by men took off in the lockdowns when barber shops were closed.
On Monday it said it now expects half-yearly profits to grow between 75% 85% for the six month to December.
Online sales at the retailer more than doubled for the half which contributed to much of the business’ sales growth (see the separate report on November retail sales.
Comparable sales were up 17.2% for the period, with the company benefiting from the continued shutdown of hairdressers thanks to lockdowns and continued virus uncertainty.
Gross profit margins have also tripled at the retailer.
CEO, Cameron Fox told the ASX in Monday’s statement that “Shaver Shop has now delivered 24 months of consecutive like for like sales growth, underpinned by the accelerating trends towards DIY personal care solutions.”
“With in-store sales conversion more than 50 per cent and average transaction values increasing more than 10%, our store teams were able to more than offset the 20% plus decline in outside foot traffic we saw in December.”
“We expect our first-half profit to increase 75 to per cent 85 per cent when we release our results in February and we are on track deliver another record profit for the full year.”
That should see the company’s net profit after tax for the half in the range of $13.5 million and $14 million, which would be a 77% to 85% increase on the first half of 2019-20
Shares in Shaver Shop jumped more than 9% to $1.16 in trading on Monday after the release of the update.