Shareholders have had a mixed reaction to Kogan.com’s strong end to the quarter, as sales are up, but the share price is down.
In a recent trading update, online shopping hub, Kogan.com announced its third-quarter trading results were up 46.1 percent from the same period in 2017.
Kogan has reported that the platform now has 1.28 million active customers, which saw the business end the quarter with $19.3 million in cash. According to the update, a large portion of this success is attributed to Kogan Mobile, which drove a 49.8 percent increase in the businesses transaction value.
This strong quarter has left the company’s Founder and Chief Executive, Ruslan Kogan confident the business will end the financial year on a positive note.
“Kogan.com commenced the new calendar year with a strong quarter of continued growth as we execute our long-term strategy. Our team is delighting customers across the board and our portfolio strategy is starting to gain strong momentum,” Kogan said.
The company had also reported an influx of revenue in the first half of FY18, which saw it outperforming its results from the full FY17, with a reported a growth of 45.7 percent from the same period in 2017.
Despite the strong quarter, shareholders have had more of a lukewarm reaction to the trading update, as Kogan.com shares fell 8.9 percent to $8.48.
This comes after the self-made billionaire, Kogan, decided to go ahead with the decision to reduce his shares in the company, offloading $5.7 million in Kogan.com shares in February this year. Kogan and the businesses Executive Director, David Shafer also sold off a $20 million stake in August 2017 and another $23 million in October.
Kogan believes the business is “poised to continue its growth trajectory into the seasonally strong end-of-financial-year quarter”.