Shaver Shop guidance cut amid retail gloom
Personal grooming products retailer, Shaver Shop, shares have tumbled nine per cent after it warned that earnings for its first financial year as a listed company could fall short of its prospectus forecast by as much as 18 per cent.
Shares in the retailer, which listed on the Australian Securities Exchange on July 1, fell 6.0 cents to 60.5 cents in the first 12 minutes of trade on Friday.
That was after Shaver Shop said full-year earnings before interest, tax, depreciation and amortisation are likely to be between $12 million and $13.5 million, compared to its prospectus forecast of $14.7 million.
“Despite strong Boxing Day trading, we have found the last two months to be challenging with unprecedented same store sales volatility in recent weeks,” chief executive Cameron Fox said.
Even so, Fox pointed out that Shaver Shop had still managed to lift first-half profit by 9.3 per cent to $6.3 million.
“Looking at the big picture, we grew our profitability in the first half in what appears to have been a tough retail trading period for many specialty retailers,” Fox said.
Shaver Shop said it opened eight new stores in the six months to December 31 and secured five franchise buybacks as it continues its transition to a corporate store model.
The company now owns 93 corporate stores in Australia and New Zealand, with another 15 operating under franchise.
The retailer posted an increase in consolidated revenue of $78.5 million, up 26.2 per cent from the $62.2 million from the previous corresponding period. Like for like total network sales fell 0.2 per cent. Gross profit margin was unchanged at 42.5 per cent.
Shaver Shop’s consolidated pro forma EBITDA was up 5.3 per cent to $10.0 million compared to the $9.5 million from the previous corresponding period. Consolidated net profit after tax was up 6.3 per cent to $6.3 million.
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