The Shaver Shop Group Ltd (ASX: SSG) share price opened more than 8% higher this morning after the retailer announced its full-year results. Here are the key points.
What did Shaver Shop report?
It seems the boom in isolation beards among Victorians locked at home is resulting in a massive improvement in sales.
Management reported sales growth of 16.4% to $195 million, which is 15.3% on a like-for-like basis (meaning based on the same number of stores as FY19).
Online sales jumped 103% for the year and unlike most retailers, actually represent more than 22% of sales; a near doubling of the 13% level in 2019.
The result was stronger net profit, up 45% to $10.6 million, and an increased dividend on 2019; bucking the trend of the sector. Shaver Shop declared a fully franked final dividend of 2.7 cents per share, taking FY20 dividends to 4.8 cents per share.
Importantly, the company did not receive JobKeeper payments and appears to be one built for the future.
Now what?
Shaver Shop revealed it is off to a strong start in FY21, with encouraging early trading performance despite store closures in Victoria and New Zealand.
The company achieved like-for-like sales growth of 28.2% over the first seven weeks of FY21, while online sales were up 187% on the prior corresponding period. Shaver Shop said the core hair removal and hair styling categories have been performing strongly.
Despite the strong start, management declined to provide FY21 guidance due to COVID-19 uncertainties and the importance of the Christmas trading period.
In my view, this was a solid result but it was boosted by reducing stock levels, which may become an issue.
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