Kogan Shares Climb As The Company Regains Lost Ground
Kogan shares are climbing back today, after the company posted its third quarter update, and replied to questioning from the ASX.
The shares are currently (2.30pm on April 28), up 7.43 per cent to $10.85.
Kogan issued a detailed response this morning, after the ASX asked for clarity on some of the company’s more vague statements, such as “gross sales grew by more than 47 per cent”, and “gross profit grew by more than 54 per cent.”
For example, the ASX asked: “Please clarify the measured percentage increase in Gross Sales for 3QFY21 by providing the actual amount of Gross Sales separately for Kogan.com and Mighty Ape in 3QFY21, and the actual amount of Gross Sales for Kogan.com in the prior corresponding period 3QFY20”, to which Kogan explained this is a 32.8 per cent increase in gross sales from Kogan, and $27.5 million in sales, after acquiring Mighty Ape.
These answers seem to have appeased the market, as the price has risen, after a sharp drop last Friday.
The shares are, however, still down roughly 60 per cent from the previous high.