Shaver Shop sales up 8%

Attributed to omni retail investments.

Shaver Shop sales have increased by 8% to $167.4 million for the year ended 30 June, 2019, with underlying sales up 11.7% and like-for-like sales growth of 4.8%.

Core business categories, hair removal and hair styling, supported the strong growth with hair removal categories driving 5.6% like for like sales growth. Shaver Shop is also evaluating additional male personal care and beauty categories to complement its current range.

Online sales for FY19 were up 30%, now comprising of 12% of total network sales. Six new stores were opened and one franchise store was bought back, in addition to six store refits and relocations.

The new store designs reflect customer feedback that has improved category segmentation, increased engagement through interactive monitors and touch and feel displays, as well as increased linear wall space for key categories. Given the success of the store refurbishment program, Shaver Shop said it expects to refurbish a further circa 10 stores in FY20.

Shaver Shop CEO and managing director, Cameron Fox said he was pleased with the financial results with normalised EBITDA of $13.5 million in the top half of guidance provided, on the back of strong sales momentum in the second half and momentum continuing into the first seven weeks of FY20.

“The past 12 months were a key investment period for Shaver Shop. We are now seeing these omni retail investments starting to deliver significant growth and pleasingly our bricks and mortar stores also grew like for like sales with increased sales conversion and basket size as the key drivers.

“Over the year, Shaver Shop’s performance improved on almost every financial metric. Corporate store like for like sales growth was 1.1%, but excluding the impact of volatile Daigou sales in both years, underlying like for like sales growth was 4.8%.”

Shaver Shop has more than doubled its active database to 234,000 members. The business has also improved its website user experience and streamlined order allocation and delivery systems.

“All of these actions are leading to improved traffic on our online sites, increased sales conversion, higher basket sizes and most importantly, an engaging and positive customer experience. Our objective is to be the leading omni channel retailer in our category and we believe we have made significant progress in FY19.”

One of the top performing regions for Shaver Shop in FY19 was New Zealand, which delivered like-for-like sales growth of 9.4%. “We have several growth initiatives planned in the coming year which we expect will significantly improve brand recognition as well as sales and earnings,” Fox said.

Shaver Shop confirmed a strong start to the first seven weeks of FY20 and believes if sales momentum is maintained through Father’s Day and Christmas campaigns, sales and earnings will continue to grow in FY20.

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