Online retailer Kogan has posted a 40.4 per cent in gross profit in its first quarter, as group sales fall 38.8 per cent.
Sales across Kogan, Dick Smith, Matt Blatt, and Mighty Ape fell 38.8 per cent to $203.3 million, with gross profits dropping 40.4 per cent to $31.3 million.
Kogan puts this down to lower gross margins following the ‘accelerated sell-through of excess inventory.”
Adjusted EBITA were $300,000, while the active customer base fell by 12.3 per cent, to just under 3.6 million. Kogan First subscribers have increased by 48.8 per cent to 385,000.
Shares have dropped 6 per cent today.
Despite all this, Ruslan Kogan, founder, CEO, and namesake, says the company is “optimistic and these first quarter results are not “indicative of its projected trading performance”.
“We know that during periods of belt-tightening like this, our responsibility to be the best place for consumers to get a bargain on their key household items is more important than ever,” Kogan explains.
“While there is a lot of uncertainty in the world, we’re optimistic and excited to continue delighting our millions of customers and the growing base of loyal Kogan First subscribers.”
Kogan also expects to be rid of the “vast majority” of its bloated inventory by early next calendar year.
