Shaver Shop Lift Guidance Amid Sales Surge
Grooming tech retailer, Shaver Shop, has defied market trends and post a 8.7% jump in underlying same store growth for the four months to April 30 (excl. Daigou re-sellers) – up from 0.8% the year prior.
The retailer has narrowed its normalised EBITDA guidance for FY19 from $12 million – $14.5 million, to $12.5 million – $14 million.
The results follow an EBITDA of $13.2 million for the 2018 fiscal year.
For the ten months to April 30, underlying same store sales growth climbed 2.6%, up from 0.7% last year.
“I am very pleased that our like for like sales growth is predominately being driven by a number of our core hair removal categories which is where our store teams excel,” asserts Shaver Shop CEO & MD, Cameron Fox.
“Our ongoing omni retail initiatives are delivering solid online sales growth so far this half”
“This is before we launch our customer relationship management platform in the coming months which will significantly enhance our ability to engage with customers on a more personalised and timely basis across any retail channel.”
The retailer claims online sales now represent 11% – 12% of total network sales, with the goal of notching 15% – 20% in the following 2 to 3 years.
Shares in Shaver Shop climbed 3.8% to 42 cents following the earnings announcement yesterday.
The chain completed five full store refits and one store relocation in February 2019.
Another 15 to 20 full store refits/relocations are planned over the next 12 – 24 months, with 4 – 6 greenfield sites planned for FY20.
The conglomerate is also in the process of buying back franchised stores, warning timing is “difficult.”
The Shaver Shop completed Eastland and VOC franchise store buy-backs in October 2018, with only 8 franchise stores remaining.
Estimated EBITDA in the remaining franchise group is said to be around $2.5 million.
It asserts there’s a “significant tax benefit” from completed franchise-buy backs to be realised in the coming years (around $1.9 million in FY19).
The company’s New Zealand division is also poised to provide strong growth opportunities, along with improved scale and profitability.
The news follows a record “record” 1H18 earnings result, with total sales climbing 19% to $93.4 million, and same store sales up 5.5%.