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.

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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.  

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