After a slow start on the ASX, online retailer Kogan continues to shine in a tough market for pureplay online retailers, with bullish forecasts for Christmas trading.
Kogan has delivered more positive news for shareholders ahead of the Christmas trading season, after an outstanding end to FY2017 which saw its share price head significantly north.
Highlights from the announcement this week featuring the cash flow statement for the quarter ended 30 September, 2017 include one million active customers, a milestone passed in August with active customer growth of 278,000 for the quarter following some significant marketing investment. Kogan Mobile also demonstrated strong growth after celebrating its second birthday in October.
Founder and CEO Ruslan Kogan said the company is pleased with the performance in 1QFY18 and the continuation of the strong trajectory of the business.
“By continuing to delight our growing customer base with our various long term business strategies, we are pleased to deliver a trading update that demonstrates ongoing strong year-on-year growth in revenue and profitability,” Kogan said.
“With a significant investment in high quality inventory, and an exciting line-up of new product releases and promotional offers to be rolled out over the coming quarter, we are better poised than ever to help out Santa Claus this Christmas.”
However, the buoyant news did not appear to impress the market, with the share price dropping 13 percent. With Amazon set to launch into the local market early November, the market remains spooked at the impact this will have, particularly on e-commerce-only retailers. Still, investors would be happy with their faith in Kogan over the past 12 months, with the share price more than doubling from its initial listing price after outperforming FY17 expectations. A 3.8 cents per share dividend was paid to shareholders in September.