The SILK Laser Australia Ltd (ASX: SLA) share price is in the red on Thursday morning after the company announced a resilient first-quarter trading update.
At the time of writing, the SILK Laser share price is down 0.75% to $4.61.
SILK Laser share price down as COVID-19 restrictions bite
SILK Laser delivered a resilient performance over the first quarter ended 30 September. Some highlights include:
- Network cash sales adjusted for lost trading days up 14% to $23.5 million;
- Unadjusted network cash sales down 4%;
- Like-for-like sales adjusted for lost trading days up 2% to $20.4 million; and
- Unadjusted like-for-like sales down 14%.
SILK was pleased with its FY22 year-to-date performance considering the lost trading days due to closed clinics during COVID-19 lockdowns. It also comes against the backdrop of an exceptionally strong comparable period last year.
The trading update highlighted strong growth across body and injectable categories, with its overall service mix evolving, as planned.
Online sales for SILK's skincare brands surged by 700% to about $189,000, although this came off a low base.
Back in September, the company announced it had completed the acquisition of Australian Skin Clinics (ASC), which pushed the SILK Laser share price higher at the time. The company advised the integration of ASC is on track.
ASC's financial performance was not included in SILK's Q1 sales metrics given its 4 weeks of ownership.
Management commentary
SILK founder and managing director Martin Perelman commented on the first-quarter results, saying:
We are pleased with how the business has performed over the first three months of FY22. While COVID lockdowns again held back sales growth as clinics were forced to close, on an adjusted basis we saw strong momentum in key growth categories, resulting in overall positive like-for-like sales growth. In particular, SILK experienced strong growth across its body and injectables categories, and exceptional growth in online sales of our skincare brands.
What's next for SILK?
SILK is positive on its outlook, citing the majority of NSW clinics achieved the equivalent of approximately two weeks' worth of trading within the first week of opening after lockdowns.
"Cosmetic Injectables, as has happened previously, performed far above expectations driven by strong waitlists and the strength of SILK's injecting teams."
Its service and earnings mix is expected to continue to evolve with a growing position in injectable and body categories. SILK said it will continue to roll out these service offerings across its network.
Despite a challenging trading environment so far in 2021, the SILK Laser share price is up 29% year-to-date.
