ASX listed grooming products retailer Shaver Shop has been trying to gain traction in female category product line. In order to provide thrust to its profit margins, Shaver Shop is moving ahead with the introduction of private label products under its new hair styling brand âFlairâ.
It has been revealed that the specialty retailer is underway to launch a new line of hair straighteners, hair dryers, and other hair styling products under its private label brand-Flair by the second quarter of FY19. The strategy is to expand the product line of company owned brand as its yields better profit margins compared to renowned branded products. It seems to be in line with the strategy adopted by other supermarket owners like Coles and Woolworths.
Shaver (ASX: SSG)Shopâs Chief Financial Officer Larry HamsonÂ stated that the company is concerned for having a right number of well-known brands including Braun, Remington, WAHL, dyson, Philips, Gillette and VS Sassoon on its shelves but the expansion of private label products would help the company to achieve great profit margins. It has been understood that over time the company aims to increase its private label sales from 2% of total sales to the range of 5% to 10%.Â [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]
Flair is going to be the third private label brand to be launched by the company, following skin rejuvenation brand âLumiSkinâ which became operational in March and the âShaver Guardâ range of cleaning and lubricants products. In the recently announced FY18 results, the company confirmed the introduction of new hair styling brand âFlair. It is scheduled to be launched in the quarter ending December 2018 to capture the festive season momentum ahead of Christmas. The focus is built upon the products targeted at female customers as the contribution of Female products range to total sales is considerable low compared to males grooming and unisex products.
Meanwhile, the retailer which has about 115 Shaver Shop stores across Australia and New Zealand, plans to ramp up the outlet network by eight to ten in fiscal year 2019. Â In the recently announced fully year result for FY18, the company posted rise in total sale by 8.7% to $154.9 million backed by online sales growth of 47.4% along with significant improvement in like-for-like corporate store sales for the fiscal year ended 30 June 2018. But EBITDA has recorded double-digit percentage decline to yield $12.2 million and net profit after tax fell by 27% to 6.6 million which includes one-off cost incurred during the year.
Shaver Shopâs share price has shown no movement today on ASX. The stock is trading at $0.430 on 24 September 2018. Amid facing intense competition in grooming product market, the companyâs stock has seen a performance change of -28.33% over the past one year; while the stock is currently trading at PE of 8.110 x with market capitalization of $53.75 million.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Â Kalkinemedia.comÂ and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.