ASX-listed retailer Shaver Shop is hoping a widespread return to the office will help maintain its soaring profit and sales figures as workers swap their unruly lockdown beards for a more professional trim.
The company told investors on Monday it expects its half-yearly profits to soar between 75 and 85 per cent thanks to a boom in online sales and a continued trend towards at-home grooming spurred by months of COVID-19 lockdowns.
Shares in the retailer jumped over 17 per cent following the announcement which forecast a half-yearly net profit after tax of between $13.5 million and $14 million, a 77 per cent to 85 per cent increase on the prior corresponding half.
Comparable sales for the half rose 17.3 per cent, growth which chief executive Cameron Fox attributed to Shaver Shop’s online sales, which more than doubled to $37.5 million over the half as locked-down shoppers took styling into their own hands.
“COVID came along, barbers and hairdressers started to close, and people started to think ‘hang on a second, how do I get this look that I want’?” he said.
“So they started doing it themselves, which lent itself to us getting a bit of a kicker.”
Shaver Shop’s sales rallied all throughout 2020, which Mr Fox has attributed in part to the growth and cultivation of many ‘lockdown beards’, however, the executive expects demand for his products to stay strong even as workers settle back into office life.
“At the moment, everyone’s going towards beards and beard care, which maybe is because of lockdown where people have let their hair grow a bit longer than normal,” he said.
“Now, when COVID-19 ends … and everyone starts going back to the office, maybe beard trimmers will soften but electric shavers, and being clean-shaven, will grow.”
“We benefit no matter how the pendulum swings.”
Shaver Shop is far from the only retailer to benefit from the pandemic’s side effects, with major players such as JB Hi-Fi, Kogan, Wesfarmers and Premier Investments all seeing higher sales and massive online growth in recent months.
Recent retail figures from the Australian Bureau of Statistics revealed a record 13.3 per cent rise in retail sales for November, spurred on by the Black Friday sales period.
Mr Fox said while Shaver Shop had participated in the sales event the company had taken a more moderate approach, with less aggressive discounting on best-selling items. This helped the business’ gross profits increase 2 per cent for the period.
Shares in Shaver Shop have risen over 50 per cent in the past year, and jumped as much as 18 per cent on Monday to hit a new all-time high of $1.25 before easing to be up 11 per cent mid-afternoon.
Source: Thanks smh.com