Kogan's sales have fallen 3.8 percent in the March quarter, with the business citing the ongoing trends of the e-commerce landscape as its catalyst.
In the recent update from the online retailer, Kogan is reporting a drop in gross sales, with the business stating that customer demand not meeting expectations.
Gross Sales dropped 3.8 percent in this quarter to $262.1 million, with the retailer citing the slow-down of e-commerce activity in Australia as its catalyst. Moreover, the business shared that the Gross Sales performance was accelerated in its Marketplace, Kogan First loyalty program and other initiatives.
This growth was offset by a decline in third-party and Exclusive Brands divisions, falling by 21.8 percent and 18.8 percent, respectively.
Gross Profit also experienced a dip, falling 11.2 percent YoY, and recorded an adjusted EBITDA for both Kogan and Mighty Ape. Kogan reported a 164.2 percent drop in EBITDA, offset by Mighty Ape’s 57 percent increase.
This disappointing result was counterbalanced by the ‘strong performance’ of Kogan Marketplace and Kogan First, and CAGR in Gross Sales since Q3 FY20 remaining ‘strong’ at 19.4 percent. Moreover, CAGR in Gross Profit since Q3 FY20 is at 20.2 percent, another figure the business said ‘remains strong’.
The shining light for the business is its Marketplace, said Ruslan Kogan, founder and CEO of Kogan. “I’m so proud of our Marketplace team, who have worked tirelessly to develop this platform,” he shared in an update.
“Kogan.com was awarded the Top Australian Marketplace at a recent industry award, recognising the fantastic experience our ever-growing Marketplace is delivering to both customers and sellers.” The industry event in question was Power Retail’s All Star Bash, where Kogan took home the Top Australian Marketplace Award.
Kogan further cited the poor performance from this quarter on the challenges facing the e-commerce landscape, but explained that the business’ 16 years of operations are keeping them held ‘in good stead’.
“Our current focus on recalibrating inventory levels and core operational costs is aimed at returning the Company to its historical margins and also to position the business for its next phase of growth,” he continued.
At the time of writing, Kogan’s shares have shed 11.01 percent since opening, and 17.38 percent over a five-day period.
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