Shaver Shop Group Ltd (ASX: SSG) shares are climbing higher today. At the time of writing, the Shaver Shop share price is up 7.53% to $1.00. This came after the company released a business update about its performance during the September quarter of 2020.
What was in the announcement?
The company experienced a 19.8% growth in sales in the September quarter of 2020 compared to the September quarter of 2019. Unaudited sales were $49.1 million in the September quarter and were supported by 192% growth in online sales. Online sales represented 32.4% of total sales during the quarter.
According to Shaver Shop, its sales growth during the quarter was achieved despite the closure of approximately 20% of its stores for two months due to lockdowns in metro Melbourne. The announcement reported that higher sales were achieved due to strong growth in online sales and growth in regions outside Melbourne. Sales growth excluding Victoria was 31.2% in the September quarter.
The company stated that it had an unaudited net profit after tax (NPAT) of $4.9 million in the first quarter of FY2021, this was an increase of 185% compared to Q1 FY2020. Shaver Shop cited healthy gross profit margins and cost control in addition to strong sales growth as the reason behind its increased profit.
Shaver Shop CEO and Managing Director, Mr Cameron Fox, commented on the result stating, "Our customer service metrics remain at or near all-time highs, and we are well placed to continue benefitting from the accelerating trends toward DIY personal grooming and online shopping."
The company did not provide guidance for its annual sales and earnings and did not comment on expected sales for the December quarter. The reasons it did not provide guidance included continuing uncertainty surrounding the coronavirus pandemic.
About the Shaver Shop share price
Shaver Shop is a retailer that provides personal grooming and beauty products. The company operates in store and online. Shaver Shop has been listed on the ASX since 2016.
The Shaver Shop share price is up 355% since its 52-week low of 22 cents and has increased nearly 52% since the beginning of the year. The Shaver Shop share price is up 61.3% since this time last year.
