- Kogan.com (KGN) sees a drop in its share price as it records a decline in sales for the third quarter
- The online retailer saw a 3.8 per cent drop in its gross sales to $262.1 million and profit fell 11.2 per cent to $41 million, compared to this time last year
- The company said this slow down was on “general market factors,” which includes a slow-down of online shopping
- However, compound annual growth rate (CAGR) in gross sales remains strong at 19.4 per cent and the CAGR in gross profit remains at 20.2 per cent
- Kogan shares drop 11.9 per cent and last traded at $4 per share
Kogan.com (KGN) has seen a drop in its share price as it records a decline in sales for the third quarter.
The online retailer saw a 3.8 per cent drop in its gross sales to $262.1 million and profit fell 11.2 per cent to $41 million, compared to this time last year.
Kogan said at the start of the year it was all ready for continued elevated sales growth, like previous quarters, however it was a prediction that did not come true.
The company said this slow down was on “general market factors,” which includes a slow-down in online shopping in Australia.
The eCommerce company has struggled to maintain the growth rates it experienced in the early days of COVID-19 and admitted it has misjudged the level of ongoing consumer demand through the pandemic and has been left with a lot of inventory.
Kogan now said it will cut its operating costs to be in line with the slower growth it is expecting for the rest of the year.
However, compound annual growth rate (CAGR) in gross sales remains strong at 19.4 per cent and the CAGR in gross profit remains at 20.2 per cent.
“Kogan.com’s growing customer base of nearly 4.1 million active shoppers is one of
the largest in Australia and New Zealand,” Founder and CEO Ruslan Kogan said.
“This growth through the March quarter as supported by the rapid growth in Kogan First members that was up almost 20 per cent over the quarter, and now sits at 345,000 loyal Kogan First members.”
“At the same time as we have been growing our customer base, the Kogan Marketplace continued to rapidly expand. I’m so proud of our Marketplace team, who have worked tirelessly to develop this platform.”
“While market conditions are challenging at present, the foundations laid over the
last 16 years are holding us in good stead,” he concluded.
On the market, Kogan has dropped 11.9 per cent and last traded at $4 per share at 1:41 pm AEST.