Grooming products retailer Shaver Shop has warned it will miss its half year sales forecasts, as the market operator queried a 26 per cent drop in its share price within the past fortnight.
Weaker than expected sales of gift giving products, particularly hair styling items, and the closure of a New Zealand store damaged by November's earthquake, have dented turnover in December, the company said.
Sales for the month are forecast to total between $26.5 million and $28 million, weaker than the company's expectation of about $29.5 million, and sales for the six months to December are therefore also set to miss expectations.
The sales warning caused a 14.6 per cent drop in Shaver Shop shares, losing 12 cents to a record low of 70 cents.
The shares had already plunged in recent weeks, falling from $1.03 on December 12 to a mid-session low of 76 cents on December 22, which prompted a query from market operator ASX.
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The ASX also raised concerns about a significant increase in trading volume in recent days.
In its response, issued to the market on Friday, Shaver Shop said it was aware of a market rumour that one of its significant shareholders had lost an investment mandate, and that could have driven a forced sale of shares.
But the company cautioned it has been unable to verify the veracity of the rumour.
It also said it is in compliance with continuous disclosure rules requiring companies to immediately release information that can impact the value of its shares.
With the key Boxing Day sales period still to come, Shaver Shop said it is unable to provide an update on its full year forecast of $127 million in sales.
