Shaver Shop bucks the retail trend to achieve significant sales growth
Written on the 23 February 2018 by David Simmons
Shaver Shop (ASX: SSG) has proved that not all Australian retailers are suffering in a challenging market, after it revealed its significant sales growth during the first-half.
The listed retailer announced its results for 1H18 on Friday, which saw total sales grow 19 per cent to $93.4 million.
Net profit after tax also grew by16.9 per cent to hit $8.1 million.
Managing director and CEO of Shaver Shop, Cameron Fox, says the results are testament to the group's unique business model.
"We are pleased to have delivered record sales and earnings, as well as a 5.5 per cent growth in same store sales in the first half, despite the challenging retail environment," says Fox.
"We have a robust business model and are excited by the opportunities we see for the group, particularly in growing the number of female customers with more female focused brands."
The group saw particular success online, with total online sales up 66.6 per cent in 1H18. Online sales represented approximately 10 per cent of total network sales.
The company says it will continue to invest in the e-commerce space as it executes a new series of omni-channel marketing plans.
The group's push to increase the number of products for female customers also paid off in the first-half.
Shaver Shop introduced popular beauty and styling brands over the last two years, including Dyson Supersonic, Veet, Scholl, StylPro, Foreo, and Dafni.
Fox says the company will continue to increase its range for female customers.
"We are really pleased to see our Female Beauty category grow more than 380 per cent over the first-half given the successful sourcing of innovative and exclusive products," says Fox.
"We are excited to be launching another major female brand late in the second half of this financial year as well as launching a new 'own-brand' range that will strategically complement our current portfolio of beauty products."
During the first-half, the listed retailer's network grew to 106 stores, with 100 stores in Australia and six in New Zealand at the end of 2017.
The company has also flagged its intention to introduce a buy-now, pay later option for customers. There is no mention yet as to whether popular platforms including AfterPay or ZipPay will be involved..
The company says the challenging market conditions experienced in December have continued into the second half of FY18, but have been recovering through February.
Shaver Shop expects its full year normalised earnings to be in the range between $13 million and $15.5 million.
Shares in the retailer are up 4.17 per cent to $0.50 per share at 11.29am AEDT.
Business News Australia
Author: David Simmons