Kogan shares dive as Q3 sales and revenue dip
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More news: Kogan shares plunged in morning trade on the ASX, after the online retailer reported lower gross sales and revenue compared to the prior corresponding period.
Kogan was trading 24.3% lower at $5.32 by 10:50am AEST.
However, its gross profit leapt 13.8% year on year.
Kogan notches Q3 profit rise, launches travel vertical
The news: Kogan.com boosted earnings in the March quarter, as the online retailer's loyalty program Kogan FIRST grew to nearly half a million subscribers.
The numbers: Kogan FIRST rose to over 472,000 subscribers during the quarter, a growth of 16% year on year. Gross profit of $39 million was up 13.8% while gross margin of 36.8% improved by 5.2 percentage points, aided by a larger contribution from platform-based sales.
Kogan reported adjusted EBITDA of $9 million compared to $4.4 million in last year's third quarter, and adjusted EBIT of $5.3 million, up from $200,000 a year prior.
However, gross sales of $178.3 million represented a 6.2% decline compared to the prior corresponding period. Revenue also fell 2.4% to $105.9 million.
The context: The retailer said gross sales and revenue were lower following a recalibration of revenue quality and focus on platform-based sales, which resulted in a significant reduction in inventories year on year. Kogan noted that the reduction in inventories follows the company's plan to reposition itself into a more capital-light business.
Kogan also announced the launch of Kogan Travel hotel deals, offering domestic and international hotel stays and packages with exclusive pricing for loyalty subscribers.
What they said: Kogan founder and CEO Ruslan Kogan said: "Kogan FIRST has become the north star for the business, creating immense value for our loyal customers".
The source: ASX announcement
