Good little update from Shaver Shop today. Full year guidance shows revenue up 4%, GM still strong and although NPAT is marginally down it still puts them on PE of 8x. It's going to be interesting to get some updates on how retailers are tracking given all the talk of doom and gloom. The worst is likely still to come but I see Shaver Shop as less discretionary than a lot of the market. I also think that in FY23 they'll be cycling a heavily COVID-impacted comp.
Anecdotally a dentist mate of mine says he permanently has the Shaver Shop website open on browsers in his practice to show patients what electric toothbrush they should be buying. They've no debt, plenty of cash and are paying a 9.5% divi yield (before franking credits are applied). Lots to like - except sentiment.
[Held]
I thought it was a relatively strong trading update from SSG today. Considering the number of days of store closures in NSW and VIC, the fact their total sales are materially in line with last year seems like a net positive. I had them flat across FY22 so that seems a bit conservative now. Online sales have been really strong and now that stores are open heading into their busiest trading period things are looking up.
The market response was tepid though (up 3%). Maybe they didn't like this slide - I can't say I blame them - what the hell are they trying to convey? "Our share price doesn't do much - unless we're in lockdowns - and even then...not always..."
[Held - here and IRL]
I wonder whether the NSW lockdown may be benefitting Shaver Shop. It turns out that hair keeps growing even when hair dressers are shut (who knew?). Will the masses seek to DIY? Clearly in store purchases are being smashed but we saw online sales grow to over 30% of SSG's total sales in 1H 21. Similarweb shows higher page visits to the Shaver Shop website over the past two months and the screenshot from Google Trends below tells a pretty compelling story too...
Offsetting this, will the inability to visit family on Fathers Day be a significant hit?
