Exceeding forecasts.
Consolidated revenue for Shaver Shop was up 33.6% to $142.6 million for the year ended 30 June, 2017. Like for like corporate sales growth was up 6.2%. Consolidated pro forma earnings before interest and tax (EBITDA) increased by 18% to $14.9 million year on year, while consolidated pro forma net profit after tax (NPAT) jumped 20.7% to $9.1 million year on year.
Shaver Shop managing director and CEO, Cameron Fox said, “This result is very pleasing and speaks to the resilience and agility of Shaver Shop’s team members and our business model. In a generally tough retail environment, we were able to achieve same store sales growth of 6.2% by identifying and capitalising on a new multi-unit reseller channel in the second half. It is this entrepreneurial spirit that has been ingrained as part of Shaver Shop’s business and values for the last 31 years.
“With total top line sales growth of 33.6% over last year, we were able to exceed our prospectus forecast EBITDA and at the same time accelerate marketing, leadership and e-commerce investments that have improved our short and longer term competitive positioning.
“We remain cautiously optimistic about our ability to service the new multi-unit reseller channel but realise this market is dependent on a number of factors that are outside our control. Accordingly, our primary focus remains on being the destination for personal grooming and beauty products for our retail customers.”
Online sales reached $11.7 million in FY17 – an increase of 9.4% on the prior corresponding period. Shaver Shop launched a new mobile and tablet friendly website in February 2017 and since that time has recognised consistent double digit sales growth in comparison to the same month last year. This is a key customer touchpoint for Shaver Shop and further improvements are being made to the site over the coming months.
Shaver Shop opened eight new corporate stores and secured seven franchise buybacks last financial year. This brought the total number of corporate stores to 95 with 13 franchised outlets. “The number of new stores rolled out was slightly lower than our target of 10-15 stores per annum, but we remain focused on getting the right site in the right centre at the right price,” Fox said.
Philip Tine has been appointed national retail operations director and Tony De Fazio has been welcomed as national training manager. “The leadership appointments not only improve our bench strength, but are crucial for maintaining our competitive differentiation and relevance in the future.”
The retailer returned to like for like growth in core categories including men’s electric shavers and long term hair removal solutions, and expanded its female beauty appliance offering. The Dyson Supersonic hair dryer will be added to the range prior to Christmas. “Shaver Shop is now being seen as a personal grooming and beauty destination for her, as well as for him.”
Outlook
“Despite a slower than expected Christmas last year, sales rebounded strongly in the second half leading to Shaver Shop exceeding its Prospectus forecast for 2017. Our business remains strong, agile and differentiated. With the strong results achieved this year, we chose to re-invest some of the earnings upside to increase leadership talent, improve brand awareness and enhance our digital and in-store capability. We are now even better positioned to compete with seven new stores to be added in the first half of the 2018 financial year.
“We continue to develop our pipeline of compelling product innovations and strong marketing campaigns with our supply partners. We believe our agile approach to these opportunities, and category leadership will continue to be important to our future success, as it has been for many years.
“While we have achieved like for like sales growth of around 15% in the first seven weeks of the 2018 financial year, we have recently experienced some increasing supply uncertainty for key products sold through the multi-unit reseller channel. As a result, same store sales growth rates are expected to moderate for the rest of the financial year.”