Why the Shaver Shop (ASX:SSG) share price is roaring 14% higher

The Shaver Shop Group Ltd (ASX: SSG) share price has rocketed 14% today after the company provided investors with an update on its trading performance.
The post Why the Shaver Shop (ASX:SSG) share price is roaring 14% higher appeared first on The Motley Fool Australia. –

unstoppable asx share price represented by man in superman cape pointing skyward

The Shaver Shop Group Ltd (ASX: SSG) share price is surging today. This comes after the company provided a positive update to its trading performance.

At the time of writing, the Shaver Shop share price is up 14.1% to $1.21.

What’s driving the Shaver Shop share price?

The Shaver Shop share price is driving higher following the release of its robust first-half year result.

In today’s release, Shaver Shop announced that it has achieved growth in key categories, underpinned by favourable trading conditions.

For the period ending 31 December, the personal grooming retailer delivered an increase of 12.4% for total sales in Q2. Like-for-like sales across the business improved 13.7%, and online sales represented a 64.7% jump for the quarter. The latter was the driving force behind the like-for-like sales performance.

A snapshot for the upcoming half-year result indicated that Shaver Shop continued to grow in all business segments. Total sales lifted 15.2%, and like-for-like sales surged 17.3% over the prior corresponding period. Most notably, demand for shopping over the internet rocketed, with a 100.2% increase for online sales, reflecting 30.3% of total sales.

The company also revealed that its gross margin profit is projected to reach more than 200 basis points from the first-half of the year. This is due to management executing strategic decisions in balancing volume growth and profit margins during key holiday periods.

Management commentary

Shaver Shop managing director and CEO Cameron Fox welcomed the result,saying:

I am exceptionally proud of our team and our first half performance. Shaver Shop has now delivered 24 months of consecutive like for like sales growth, underpinned by the accelerating trends towards DIY personal care solutions. Our customer database now exceeds 600,000 members and our online sales more than doubled in the first half to $37.5 million reflecting our position as the leading omni channel retailer in our core categories.

 Mr Fox said Shaver Shop teams across Australia and New Zealand had “remained focused and resilient”, consistently delivering “exceptional customer service during an incredibly uncertain time”.

With in-store sales conversion more than 50% and average transaction values increasing more than 10%, our store teams were able to more than offset the 20% plus decline in outside foot traffic we saw in December. We expect our first half profit to increase 75-85% when we release our results in February and we are on track deliver another record profit for the full year.

First half FY21 guidance

Taking into account its performance so far, Shaver Shop is gearing up for a positive half-year results release in February. The board advised that net profit after tax will be in the range of $13.5 million to $14 million. Previously, the company reported $7.6 million in net profit after tax for the first half of FY20.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Shaver Shop (ASX:SSG) share price is roaring 14% higher appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!