Kogan Fails to Meet Expectations in Q3

Power Retail By Power Retail | 29 Apr 2022

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.

The e-commerce landscape is changing. With a Power Retail Switched On membership, you get access to current e-commerce revenue and forecasting, traffic levels, average conversion rate, payment preferences and more!

0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

[gravityform id="11" title="false" description="false" ajax="true"]
<script type="text/javascript">var gform;gform||(document.addEventListener("gform_main_scripts_loaded",function(){gform.scriptsLoaded=!0}),window.addEventListener("DOMContentLoaded",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&&gform.scriptsLoaded?o():!gform.domLoaded&&gform.scriptsLoaded?window.addEventListener("DOMContentLoaded",o):document.addEventListener("gform_main_scripts_loaded",o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook("action",o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook("filter",o,n,r,t)},doAction:function(o){gform.doHook("action",o,arguments)},applyFilters:function(o){return gform.doHook("filter",o,arguments)},removeAction:function(o,n){gform.removeHook("action",o,n)},removeFilter:function(o,n,r){gform.removeHook("filter",o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&&(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&&(i=n+"_"+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&&((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){"function"!=typeof(t=o.callable)&&(t=window[t]),"action"==n?t.apply(null,r):r[0]=t.apply(null,r)})),"filter"==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&&(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&&i!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][n]=r)}});</script> <div class='gf_browser_unknown gform_wrapper fix-om-styling_wrapper gform_legacy_markup_wrapper' id='gform_wrapper_11' ><div id='gf_11' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_11' id='gform_11' class='fix-om-styling gform_legacy_markup' action='/news/kogan-fails-to-meet-expectations-in-q3/#gf_11' > <div class='gform_body gform-body'><ul id='gform_fields_11' class='gform_fields top_label form_sublabel_below description_below'><li id="field_11_2" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" ><label class='gfield_label' for='input_11_2' >Email Address<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_email'> <input name='input_2' id='input_11_2' type='text' value='' class='large' placeholder='Email' aria-required="true" aria-invalid="false" /> </div></li><li id="field_11_3" class="gfield gfield_contains_required field_sublabel_hidden_label field_description_below hidden_label gfield_visibility_visible" ><label class='gfield_label gfield_label_before_complex' >Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_complex ginput_container no_prefix has_first_name no_middle_name has_last_name no_suffix gf_name_has_2 ginput_container_name' id='input_11_3'> <span id='input_11_3_3_container' class='name_first' > <input type='text' name='input_3.3' id='input_11_3_3' value='' aria-required='true' placeholder='First Name' /> <label for='input_11_3_3' class='hidden_sub_label screen-reader-text'>First</label> </span> <span id='input_11_3_6_container' class='name_last' > <input type='text' name='input_3.6' id='input_11_3_6' value='' aria-required='true' placeholder='Last Name' /> <label for='input_11_3_6' class='hidden_sub_label screen-reader-text'>Last</label> </span> </div></li><li id="field_11_5" class="gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible" ><label class='gfield_label' for='input_11_5' >Company / Organisation<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_5' id='input_11_5' type='text' value='' class='large' placeholder='Company' aria-required="true" aria-invalid="false" /> </div></li><li id="field_11_6" class="gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible" ><div class='ginput_container ginput_container_text'><input name='input_6' id='input_11_6' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></div></li><li id="field_11_7" class="gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible" ><div class='ginput_container ginput_container_text'><input name='input_7' id='input_11_7' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></div></li><li id="field_11_8" class="gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible" ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_11_8' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></div></li><li id="field_11_9" class="gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible" ><label class='gfield_label' for='input_11_9' >Comments</label><div class='ginput_container'><input name='input_9' id='input_11_9' type='text' value='' /></div><div class='gfield_description' id='gfield_description_11_9'>This field is for validation purposes and should be left unchanged.</div></li></ul></div> <div class='gform_footer top_label'> <button type="submit" class="button-3" id="gform_submit_button_11">SUBSCRIBE</button> <input type='hidden' name='gform_ajax' value='form_id=11&amp;title=&amp;description=&amp;tabindex=0' /> <input type='hidden' class='gform_hidden' name='is_submit_11' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='11' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_11' value='WyJbXSIsIjRjNDYzMzMwNzM3OTFjM2ZlOGZhNjY2ZDA4ZDVlMDcyIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_11' id='gform_target_page_number_11' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_11' id='gform_source_page_number_11' value='1' /> <input type='hidden' name='gform_field_values' value='' /> </div> <p style="display: none !important;"><label>&#916;<textarea name="ak_hp_textarea" cols="45" rows="8" maxlength="100"></textarea></label><input type="hidden" id="ak_js" name="ak_js" value="250"/><script>document.getElementById( "ak_js" ).setAttribute( "value", ( new Date() ).getTime() );</script></p></form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_11' id='gform_ajax_frame_11' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type="text/javascript"> gform.initializeOnLoaded( function() {gformInitSpinner( 11, 'https://powerretail.com.au/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery('#gform_ajax_frame_11').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_11');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_11').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_11').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_11').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_11').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_11').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_11').val();gformInitSpinner( 11, 'https://powerretail.com.au/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [11, current_page]);window['gf_submitting_11'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_11').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_11').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [11]);window['gf_submitting_11'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_11').text());}, 50);}else{jQuery('#gform_11').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [11, current_page]);} );} ); </script><script type="text/javascript"> gform.initializeOnLoaded( function() { jQuery(document).on('gform_post_render', function(event, formId, currentPage){if(formId == 11) {if(typeof Placeholders != 'undefined'){ Placeholders.enable(); }} } );jQuery(document).bind('gform_post_conditional_logic', function(event, formId, fields, isInit){} ) } ); </script><script type="text/javascript"> gform.initializeOnLoaded( function() { jQuery(document).trigger('gform_post_render', [11, 1]) } ); </script>