Insights

Why the Shaver Shop (ASX:SSG) share price just nudged new highs

The Shaver Shop (ASX:SSG) share price nudged new highs this morning after the company released its half year results. Here’s the lowdown.
The post Why the Shaver Shop (ASX:SSG) share price just nudged new highs appeared first on The Motley Fool Australia. –

man looking up as if watching asx share price whilst using electric shaver

Shaver Shop Group Ltd (ASX: SSG) shares nudged new highs this morning after the company released its half-year results. In early trade, the Shaver Shop share price leapt around 4% to $1.24, just shy of its $1.25 52-week high.

At the time of writing, however, Shaver Shop shares have retreated back to $1.19, flat for the day so far.

What’s impacting the Shaver Shop share price?

The Shaver Shop share price was temporarily boosted this morning after the company released its results for the first half of FY21.

Shaver Shop’s report was highlighted by an 85.5% increase in net profit after tax (NPAT) for the first half to $14.2 million. The company also saw a 44.7% increase in gross margins for the period.

The retailer reported record sales of $123.6 million for the first half, fuelled by its online store. The company highlighted that online sales grew 102% and represented one in every three corporate sales. In addition, sales growth was strongest across higher-margin and hair-cutting products.

Shaver Shop management noted that the company had benefitted from continued and growing momentum in DIY personal care products.

In addition, Shaver Shop highlighted the company’s strong balance sheet with $41.1 million cash. As a result, it declared an interim dividend of 3.2 cents per share, a 52.4% increase from the prior corresponding period.

Outlook

Despite reporting stellar sales, Shaver Shop did not provide guidance for full-year sales and earnings. The company cited the ongoing uncertainties surrounding COVID-19 for the decision.

However, Shaver Shop noted that total sales in the first six weeks of the second half were up 17.3% with same store sales up 17.6% for the period.

Shaver Shop’s Managing Director and CEO Cameron Fox shed some light on the company’s potential outlook. In a statement, Fox stated that “…in store service metrics remain outstanding, which puts us in the best position possible to comp the exceptional growth rates we experienced in Q4 of FY2020.”

Shaver Shop share price snapshot

Shaver Shop is a speciality retailer that focuses on male and female personal grooming products. The company currently operates 121 stores across Australia and New Zealand.

The Shaver Shop share price has gained more than 60% over the past year. This came despite the retail chain’s shares falling as low as 23 cents in March 2020. Based on the current Shaver Shop share price, the company commands a market capitalisation of around $145 million.  

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 February 15th 2021

More reading

Motley Fool contributor Nikhil Gangaram 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 just nudged new highs 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!