Kogan.com sold off despite sale growth jump during pandemic

The homegrown online retailer is suffering some growing pains but still smashing sales records on Black Friday and Christmas.

Ruslan Kogan

Online retailer Kogan.com has turned in a record half driven by elevated sales during the pandemic but was sold off by investors expecting stronger figures.

The company’s shares slid by 8.34 per cent to $18.02 as investors queried whether the retailer’s growth would hold up as physical stores regained traffic and it disclosed unrealised foreign exchange losses.

Kogan reported a busy half, partly driven by Black Friday week in November last year, and its active customer numbers surged past three million. Sales topped $50m during Black Friday week and on the day were more than $15m.

The company also grew at a strong pace in the Christmas trading period, delivering to more than one million shoppers.

The company had tackled “significant challenges” caused by extreme growth and was integrating the newly acquired Mighty Ape operations during the COVID response period.

Kogan.com chief executive Ruslan Kogan said the company was navigating “extreme growth” in its core business and was responding to a fast-changing economic, health and supply chain environment. The company was expanding its logistics capability, marketing and infrastructure so the business could be scaled up.

“The Black Friday week saw some of the most extraordinary trading we have ever seen, with seven out of our top 10 days ever occurring during the Black Friday period,” Mr Kogan said.

Kogan Group’s gross sales grew by over 96 per cent and gross profit grew by over 120 per cent. Adjusted earnings before interest, taxes, depreciation and amortisation grew by more than 175 per cent and EBITDA grew by more than 140 per cent.