Kogan upbeat despite dip

KOGAN shares have slumped to a seven-month low, despite the online retailer flagging a 90 per cent jump in full-year earnings to $23.7 million.

Kogan shares at close yesterday were down 78 cents to $5.84 in a higher Australian share market – the lowest level for the stock since Christmas.

CommSec market analyst Steven Daghlian said the shares had been under some pressure since hitting a record high of $9.85 on March 16.

Kogan achieved a five-fold surge in value last year, and the stock is down around 13 per cent so far this year. The ASXlisted merchant says the lift in earnings before interest, tax, depreciation and amortisation came on the back of a more than 40 per cent jump in revenue from last year’s $289.5 million.

Kogan says it had 1.4 million active customers at the end of June, up 45 per cent from a year earlier, and was holding cash of $41.99 million.

Kogan founder and chief executive Ruslan Kogan (pictured) was upbeat about the group’s future in the company’s statement yesterday.

“We are excited about all the growth initiatives we are implementing, as we continue to make the most in-demand products and services more accessible and affordable for our customers,” Mr Kogan said.

Kogan, which listed on the share market in July 2016, has been expanding beyond selling electronics and apparel to take advantage of its extensive database of customers.

The Melbourne-based company now offers travel, insurance, phone and internet services, and will soon sell its own brand of whitegoods.

WE ARE EXCITED ABOUT ALL THE GROWTH INITIATIVES WE ARE IMPLEMENTING