Shaver Shop shares have soared 15 per cent after the niche retailer upgraded its earnings forecast less than two months after a profit warning.
Customers snapping up products for resale in Asia helped lift comparable sales for the nine months to March 31 by 1.3 per cent.
The company now forecasts annual earnings before interest, tax, depreciation and amortisation of $13.7 million to $15 million, up from its previous guidance of $12 million to $13.5 million.
Shaver Shop said it is looking at the Asian market for further sales growth.
"The board and management are closely monitoring this opportunity and seeking to both nurture and support the sales growth, whilst being cautious as this channel is notoriously difficult to predict and forecast," the company said in a statement.
Australia's infant formula market, particularly Bellamy's, recently benefited from strong Chinese demand for its products, but than proposed regulatory changes hit the sector.
Shaver Shop also announced it has agreed to buy the Bondi Junction and McCarthur Square franchises, taking the total number of franchise buybacks to seven in the current financial year.
The deals are expected to be completed by the end of May, but the earnings contribution isn't expected to be material to its 2016/17 results.
Shaver Shop shares gained nine cents to 69 cents, their best price since the company in February reported weaker than expected sales.
Share
