Shaver Shop Group (ASX:SSG) reported a “solid half” for the first half of FY26, delivering sales growth, record gross margins and strong cash generation despite what management described as a “highly competitive and value-driven” retail environment.
Chief executive officer and managing director Cameron Fox said the business continued to benefit from its specialist positioning in personal care and grooming across Australia and New Zealand, supported by an omni-channel platform and a store network of 126 corporate-owned locations. Fox also pointed to high brand awareness in Australia of around 87%, along with leadership positions in multiple categories and a service-led model backed by deep product expertise and exclusive ranges.
Sales growth led by online as consumers stay value conscious
On a like-for-like basis, sales increased 0.9%, which management characterized as a solid result given broader retail conditions. Fox noted the company delivered two quarters of sales growth during the half for the first time since FY23. Transaction volumes increased 3.8%, supported by improved conversion, but average transaction value declined modestly as customers remained focused on value and promotional activity stayed elevated around Black Friday and Boxing Day.
Operational metrics cited by management included in-store conversion rising to 47.8% and units per transaction increasing to 1.43. Online traffic and transaction volumes also grew, with higher online transaction values attributed to category mix.
Record gross margin as Transform-U expands
The standout performance item highlighted by management was gross margin, which reached a record 46.5%, up 100 basis points. Gross profit increased 4.6% to AUD 59.8 million, also a first-half record, despite relatively stronger growth in lower margin categories such as power oral care, hair styling and female categories.
Fox and chief financial officer Larry Hamson attributed the margin expansion primarily to Transform-U, the company’s private brand launched in October 2024, as well as disciplined category management. Fox said Shaver Shop was now cycling the initial launch period for Transform-U, but continued to expect it to support strong gross profit outcomes over the medium term as the range expands and brand awareness builds.
Management also emphasized the role of exclusivity in its offer. Fox said 21 of the group’s top 30 selling products by dollar value were exclusive to Shaver Shop in the first half, including items from Transform-U and products under exclusive distribution agreements such as Skull Shaver. The company also extended its brand offering with Mangroomer and Pixer.
Profit, costs and cash flow
Net profit after tax increased 1.5% to AUD 12.2 million. EBIT rose 2.5% to AUD 18.1 million, with EBIT margin flat at 14.1%, while NPAT margin was 9.5%. Basic and diluted earnings per share were AUD 0.093, marginally higher than the prior year.
Hamson said the cost of doing business increased 5.5%, largely driven by wage inflation, including minimum wage and superannuation guarantee increases, as well as the absence of the same level of prior-year long-term incentive and expense reversals.
Operating cash flow was AUD 36.9 million, up AUD 8.9 million from the prior corresponding period. After adjusting for a deferred supplier payment that shifted into early January 2026, Hamson said normalized operating cash flow was still up around AUD 4 million to approximately AUD 32 million. CapEx was AUD 1.2 million, relating to new stores, refits and relocations, with higher CapEx expected in the second half due to additional planned work.
The balance sheet remained debt-free, with net cash of AUD 25.1 million at December 31 (described as a seasonal high) and AUD 30 million of undrawn debt facilities. Inventory increased by AUD 3.4 million versus the prior corresponding period, reflecting improved stock availability, higher Transform-U inventory, new exclusive brands and an additional store. Hamson said the company had no material concerns about inventory levels or quality.
Dividend and second-half trading update
The board declared a fully franked interim dividend of AUD 0.048 per share, 100% franked and consistent with the prior year. Hamson said the company’s approach to dividends and capital management remained focused on balancing sustainable dividends with investment in opportunities such as Transform-U and exclusive distribution brands.
For the second half to date, Fox said sales were up 3.8%, with like-for-like sales up 1.9% through to February 22. Online was the stronger performer relative to in-store, according to management. Fox said gross margins were flat versus the corresponding period as the company cycled the post-Transform-U launch period, and the company continued to see a higher proportion of growth coming from lower margin categories.
Looking ahead, management said priorities included continued expansion of the Transform-U range and a dedicated Transform-U website targeted for launch by the end of March, alongside increased social media activity and selective use of influencers to build brand awareness. The company also expects a new store at Eastern Creek Quarter in New South Wales to open in March, with several refits and relocations planned in the second half.
Q&A: Store upgrades and exclusives
During the question-and-answer session, Fox said store refits typically deliver around a 10% sales uplift in the first year, flowing through to profitability. He said refits focus on updating stores to current brand standards, while relocations are used to address store size constraints or improve positioning within a shopping center. Fox added that many of the targeted stores had not been refit for 10 to 15 years.
Asked about exclusives, Fox said there were no material examples of exclusive brands being discontinued, though at a product level the business may decide not to continue certain arrangements due to overlap with Transform-U or minimum purchase requirements that increase risk.
On competition, Fox said he had not seen a material change in the competitive environment in recent years, noting that while JB Hi-Fi had gained some traction in grooming, it may be taking share from traditional department stores, which he said have reduced focus on small electrical personal care categories over the past five to six years.
About Shaver Shop Group (ASX:SSG)
Shaver Shop Group Limited engages in the retailing of personal care and grooming products in Australia and New Zealand. It offers electric shavers, beard trimmers, hair clippers, body groomers, head shavers, manual shavers, oral care, massage and wellness, and skincare and haircare products for men; and hair removal, hair styling, beauty, oral care, massage and exercise, and fragrance products for women. It offers its products through its corporate owned stores, as well as online through its websites and online marketplaces.
