Shaver Shop sales inch up 2.7%

Online is key growth area.

Shaver Shop has recorded a 2.7% sales increase to $95.7 million for the half year ended 31 December 2018. Underlying same store sales declined 0.1%.

Six new stores were opened, one franchise store bought back and one store was refitted.

Shaver Shop managing director and CEO, Cameron Fox said, “Shaver Shop continued to deliver top lines sales growth despite reduced Daigou reseller channel sales over the half. The Daigou reseller channel has not materially contributed to Shaver Shop’s earnings over the last 12 months.”

After adjusting Daigou sales, the underlying business grew sales by approximately 7.7% with underlying EBITDA up at $11 million.

During the half, sales conversion averaged at 37.5% and the net promotor score was consistently above 80 points.

Shaver Shop’s online channel continued to underpin sales growth. “Despite a more disciplined approach to our use of online marketplaces in 1H FY19, we still saw online sales up 10.6% for the half and growing off an exceptionally strong prior year result. Online sales now represent 11.6% of total network sales as this channel benefits from the investments we are making in our digital and customer relationship platforms,” Fox said.

“Over the first six to seven weeks of 2H FY19, underlying same-store sales growth was 8.1% with almost all states and territories posting positive sales results. We have seen double digit growth across our core hair removal categories and hair styling continues to benefit from the launch of the ghd brand in stores.”

EBITDA for FY2019 is expected to be in the range of $12 million and $14.5 million.

“Our second half business priorities are set, including five full store refits that are currently underway, ongoing enhancements to our digital marketing and digital sales platforms, new product launches and targeted promotional opportunities to drive category growth.”

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