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Kogan Earnings Plummet, Shares Jump 32.5%

Kogan.com has signalled substantial earnings and profits drops for fiscal 2022, an announcement that has seen its share prices leap 32.6 per cent this morning.

Kogan shares are sitting at $4.15, as of 11:15am.

This morning, the online retailer flagged that gross profits for FY22 had fallen 20.8 per cent, despite sales increasing by 0.1 per cent, to $1.180 billion.

Kogan expects EBITDA to be 69 per cent lower, at $19.1 million for the year.

Marketplace sales were up almost 20 per cent, however third-party brand sales slid 33 per cent, and exclusive brand sales fell 15 per cent.

Ruslan Kogan is making the overall business leaner “to enable us to pass on cost efficiencies to customers in the form of lower prices”.

“Times are changing,” Kogan continued.

“In uncertain times, people don’t want to alter their lifestyle but they are happy to shift the way they shop. We know that in an environment where great value becomes even more important, Kogan.com serves an important need.

“A leaner company means we discontinue parts of the business that are not delivering value to customers or shareholders, and also gives us the flexibility to respond to significant ongoing changes in the macro environment.”



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