Kogan Claims 90% Stock Turnover As Earnings Surpass Expectations
Online shopping website Kogan is cruising at $1.60 a share after releasing its second quarterly earnings report since going public back in 2016.
The company ended the quarter with $26.5 million in cash.
In its last earnings report, Kogan says it surpassed expected revenues by more than 10% and gross profit by more than 20%.
This time around, it exceeded the expectations it outlined for the November and December trading period but didn’t go into the exact degree of growth.
CEO Ruslan Kogan says that the company is “pleased to deliver cashflows that demonstrate better than forecast operating results for Kogan.com’s second quarter of trading as a listed company.”
He says “the benefits of our investment in inventory are demonstrated by strong trading performance and margin improvement in 2Q17. The release of capital constraints has allowed the company to operate with desired inventory levels of brand new in-demand private label stock.”
Likewise, Kogan says that company’s investment in systems, architecture and automation prior to their IPO is “delivering positive results as we start to scale the business.”
He claims that Christmas trading demonstrated strong demand for new products and this trend has continued through the post-Christmas period.
According to the earnings report, 90% of the company’s $32 million in warehoused stock for the website was received during the last quarter. This indicates a high level of turnover.
“While the company’s earnings performance to date is exceeding expectations of guidance which was revised upwards at the company’s AGM, the board is mindful that a half-yearly review is being undertaken by the auditor. The board is closely monitoring ongoing trading performance, and will consider if a further update to the company’s outlook is required at the conclusion of the auditors half yearly review,” he says.
Kogan, now the second most visited online shopping website in Australia, is expected to take a hit when US player Amazon.com enters the local market later this year.