The ASX share Shaver Shop Group Ltd (ASX: SSG) has been on a strong run in recent times, rising more than 20% in four months, as the below chart shows.
The business recently reported its FY25 result, which I believe demonstrated a number of positive elements, particularly for investors focused on dividend income.
Shaver Shop describes itself as a specialty retailer of male and female personal grooming products and wants to be the market leader in all things related to hair removal. It has 124 Shaver Shop stores across Australia and New Zealand, offering various brands at competitive prices, with a number of exclusive products from suppliers.
While its main product range of male and female hair removal products are electric shavers, clippers and trimmers, and wet shave items, it also sells oral care, hair care, massage, air treatment and beauty categories.
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Compelling FY25 numbers
Despite challenging retail conditions, the business was able to prudently balance sales and gross profit dollar growth. This led to sales declining 0.4% and gross profit increasing by 2.1%.
It said that its Transform-U private brand, launched in October 2024, continues to perform strongly, representing 5.4% of total sales in the second half. The Skull Shaver exclusive distribution agreement has also driven "incremental margin" in FY25.
The company also said that ongoing cost management led to its cost of doing business only rising by 1.4% to $60.2 million driven by a minimum wage award increase of 3.75% and normal inflationary cost pressures.
Shaver Shop's operating profit (EBIT) climbed by 2.4% to $22.5 million, though net profit declined by 1.3% because of higher net finance costs.
The ASX share's annual dividend per share increased by 1% to 10.3 cents, which currently translates into a grossed-up dividend yield of 9.5%, including franking credits.
Why the outlook is positive for the dividend (yield)
The company has seen a positive change to its sales trajectory. In FY26 to 21 August 2025, total sales increased 2.7% with like-for-like sales growth of 1.5%. Sales growth could signal stronger profit growth if it has maintained its focus on profit margins. It did reveal the gross profit margin is up year-over-year.
The leadership of the ASX share also decided to increase the dividend payout ratio to between 65% to 90% of underlying net profit, up from the previous 60% to 80% of cash net profit. Even if profit were flat in FY25, there is room for the business to pay a larger dividend.
With the prospect of improving its store network, selling more private label products, potentially working with other brands and keeping control of costs, I think this ASX share has a lot to offer for income-focused investors.
