Australians aren’t buying personal grooming products this Christmas.
Shares in the Shaver Shop Group fell hard after warning that sales will be lower than expected in the lead up to Christmas.
A short time ago, they were down 14.6% to $0.70. Shaver Shop listed on the ASX in July at $1.05, raising $98 million.
The company says sales at its 100 stores in Australia and New Zealand for the half year to December are expected to be below assumptions in the prospectus.
Part of the reason is weak sales in the hair styling category and the closure of the Queensgate store in New Zealand following an earthquake.
Shaver Shop now expects corporate store retail sales to be between $26.5 million and $28 million for December compared to previous guidance of $29.5 million.
“We believe that the softness in trading (relative to expectations) is isolated to a small number of issues,” the company says.
“We remain confident that our organic growth, buyback and greenfield expansion strategies will lead to increased shareholder value over the medium to long term.”