Shaver Shop (ASX: $SSG) has released its H1 FY24 report, revealing a 3.7% decline in sales to $127.0 million. The net profit after tax stands at $12.5 million, down 8.6% compared to the prior corresponding period. Operating cash flow amounted to $34.9 million, with net cash at $31.9 million as of 31st December 2023. Online sales remained flat at $31.1 million, representing 24.4% of total sales.
The sales decline in H1 FY24 was primarily driven by foot traffic declines outside our stores and a slight decrease in sales conversion, although partially offset by higher transaction values. Despite the challenges, our in-store sales conversion remained strong, and average transaction values increased due to changes in product mix and prudent promotional activities. We also observed a flat trend in online sales, accounting for 24.4% of total sales. The quarterly trading patterns improved in Q2 FY24 compared to Q1, with Black Friday sales playing a significant role in driving growth over this key selling period. Our gross profit margin increased by 10 basis points to 44.4%, reflecting our focus on maximizing gross profit dollars through strategic pricing and leveraging exclusive product lines.
Shaver Shop's H1 FY24 report reflects a challenging period marked by a 3.7% decline in sales, primarily attributed to foot traffic declines and a slight reduction in sales conversion. However, the company maintained a strong gross profit margin of 44.4% and a healthy net cash position of $31.9 million. The focus on operational excellence and maximizing gross profit dollars remains a priority for H2 FY24, along with store refresh programs and the launch of a new software platform to enhance customer experiences. Despite the current challenges, Shaver Shop remains well positioned with a unique business model and a focus on maintaining profitability. The company's strong operating cash flow provides flexibility for dividends, organic growth, and potential capital management options.