One of the worst performers on the market this year has been the Shaver Shop Group Ltd (ASX: SSG) share price.
Its shares have come under significant selling pressure this year due to the impact of supply issues for key products sold through its multi-unit reseller channel, also known as the daigou.
But thankfully, shareholders have reason to smile today. In afternoon trade the specialty retailer's shares are up 9.5% to 46.5 cents.
What happened?
At its annual general meeting today Shaver Shop provided the market with a trading update.
While no changes have been made to its full-year EBITDA guidance of between $13 million and $15 million, compared to the pro forma EBITDA of $14.9 million in FY 2017, investors appear to be relieved that trading conditions have not deteriorated further since its last update at the end of September.
Furthermore, its shares were given an additional boost by management's decision to establish an on-market share buyback program.
Management believes this is an appropriate mechanism to return capital to shareholders at this time and aims to use its free cash flow to buy up to 10% of outstanding shares.
