Kogan lifts profit, sales flat year-to-date

9:40am on 22 November 2024

The news: Online retailer Kogan has reported nearly flat sales in the four months to October but lifted its gross profit for the period on the back of improved margins.

The numbers: Gross sales for July to October were up 0.4% to $258.9 million, while gross profit was up 15.3% to $59.2 million.

Gross margin improved by 2.5 percentage points to 38.9% during the period, driven by improved margins in the products division, Kogan said.

The context: Chief executive Ruslan Kogan said improved margins were achieved through healthier inventory levels and an optimised product mix. Adjusted earnings were up 55.2% to $14.7 million in the first four months, reflecting well-managed operating costs, he said.

10:31am on 22 November 2024

More news: Shares in Kogan.com are up 3.3% to $5.04 after the online retailer reported improved revenue, margins and gross profit in the four months to October.

Revenue was up 7.8%, while gross profit was up 15.3% in the period.

RBC Capital Markets analyst Wei-Weng Chen said the AGM trading update revealed the company is on track to arrest five halves of declining revenue.

What they said: "Earnings look softer on a monthly run rate vs. Kogan previously disclosed July results, but we note results do not include Kogan's important year-end sales period," Chen said.

weekdays

Our must-read flagship: Capital Brief’s best reporting and analysis. Update and view your newsletter preferences in your account.

weekdays

Your AM headstart: The news that matters and what to expect next. Update and view your newsletter preferences in your account.