Thanks to strong hair removal sales.

The hair removal category helped push consolidated pro forma EBITDA up 5.3% to $10 million for Shaver Shop for the six months ended 31 December, 2016. Meanwhile, consolidated NPAT increased by 6.3% to $6.3 million, up from $5.9 million in 1H FY16.

Commenting on the results, Shaver Shop managing director and CEO, Cameron Fox (pictured) said, “We remain committed to being the leader in all things related to hair removal. In our core hair removal categories, network same store sales were up 2.7% in the first half of the year which was a solid result in what appears to have been a subdued retail environment.”

“With good levels of innovation across the hair removal range, we saw strong growth in women’s long term hair removal solutions, temporary hair removal as well as a return to growth in men’s electric shavers.

“While we were pleased with our performance across hair removal categories, we had challenges in cycling the strong prior year sales performance over Christmas in both hair styling and massage products. Given our strong seasonality, this lead to same store sales dipping into negative in the first half,” he said.

“Despite strong Boxing Day trading, we have found the last two months to be challenging with unprecedented same stores volatility in recent weeks.”

Shaver Shop opened eight new corporate stores and was able to secure five franchise buybacks – the last being Macquarie, NSW. This brings the total network to 108 stores across Australia and New Zealand, 15 of which are owned and operated by franchisee partners.

“We have a differentiated business model within the hair removal segment that focuses on unparalleled in-store product knowledge and exceptional customer service. This enables us access to exclusive products from local and global suppliers in a market segment that has shown strong growth over a long period of time,” Fox said.

“We are continuing to execute our new store rollout and buyback strategies and have now reached brand awareness of 82% within Australia. 37 of our 50 top products are exclusively sold by Shaver Shop in Australia and together with the exceptional product knowledge of our staff and our focus on customer service, we are well positioned to continue growing in the future,” he continued.

Business growth drivers

  • Ongoing product innovation – continue to source new and innovative products on an exclusive release basis
  • Store rollout – intend to open 10 to 15 stores per year through 2019
  • Franchise store buyback – there are 15 remaining franchises in the network
  • Wet shaver category – domestic wet shave market in Australia is worth circa $387 million and Shaver Shop sees opportunity to increase its market share in this category
  • Online sales growth – online sales comprise 7% of total network sales or $6.6 million
  • Marketing activity – targeted marketing campaigns across digital and catalogue to drive brand awareness